Ten steps to performance success
When the faculty identified ten factors for good performance management, they were tested in a global study by the Advanced Performance Institute. Bernard Marr examines the details.
The study of over 1,100 respondents from the UK, the US, Canada and Australia revealed that just having a set of performance measures in place does not lead to better performance.
In fact, it often leads to a decrease in performance with perverse and dysfunctional behaviours such as sub-optimisation, target fixation, cheating and lying.
However, doing performance management properly and following the principles outlined here can lead to better performance and more success. The study found that organisations with the most successful BPM approaches are those that:
- Create clarity and agreement about their strategic aims;
- Collect meaningful and relevant performance indicators;
- Use these indicators to extract relevant insights;
- Create a positive culture of learning from performance information;
- Gain cross-organisational buy-in;
- Align other organisational activities with the strategic aims outlined in the performance management system;
- Keep the strategic objectives and performance indicators fresh and up-to-date;
- Report and communicate performance information well;
- Use the appropriate IT infrastructure to support their performance management activities; and
- Give people enough time and resources to manage performance strategically.
The research, which in our view is equally relevant to government organisations and commercial companies, confirmed that each of these 10 principles helps organisations perform better.
However, when they are all in place together we can see the most significant impact on better decision-making and improved performance.
Therefore, addressing all these principles together far outweighs the impact of getting them right individual. Let’s look at each of the principles in turn.
This is an extract from the Finance & Management Magazine, Issue 208, March 2013.
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