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Strategic Performance Management

IMPLEMENTING PERFORMANCE MANAGEMENT
USING THE KRA & KPI FRAMEWORKS

Managing the performance of an organization or individual is always a challenge to all CEOs and leaders. This involves not only the understanding on Performance Management, but acting on performance issues at each level of the organization, from individuals, departments, teams and business units, right through to the organization itself.

As well as involving performance measurement and tracking, systems and processes, performance management is about managing people and the way people within an organization operate and work together. Issues such as leadership, decision making, motivation, innovation, involving others and risk taking are just as important to bring about improvement.

The problem of how organizations should assess their performance has been challenging management practitioners and consultants for many years. Financial measures have long been used to evaluate the performance of organizations. However, there was a growing realization that given the increased complexity of organizations and the markets in which they compete, owing to ICT age and globalization, it was no longer appropriate to use financial measures as the sole criteria for assessing success.

These shortcomings of traditional measurement systems have given rise to a revolution in the field of performance management. The work of Kaplan and Norton has given rise to the development of the Balanced Scorecard (BSC) as a strategic management tools to measure performance and was first introduced in 1992 and has since then evolved somewhat.



Many organizations have tried to incorporate the Scorecard and KPIs methodology into their Performance Management System (PMS). However, many organistions struggle to implement the Scorecard successfully and too often end up with a diluted version that fails to deliver the full benefits of this management tool.

Performance management reminds us that being busy is not the same as producing results. It reminds us that training, strong commitment and lots of hard work alone are not results. The major contribution of performance management is its focus on achieving results -- useful products and services for customers inside and outside the organization. Performance management redirects our efforts away from busyness toward effectiveness.

Did you know that 70% of scorecard implementations fail to deliver the objectives and Why?

The key to the successful implementation of any strategy is in the execution. Organizations must be able to drive, translate and execute the strategy into operational terms at every level throughout the organization.

Success is not about constructing over-complex measures, it is about developing a practical and pragmatic management tool that senior management will use with confidence and understanding.

The ability to tie operation outputs to strategy and the means to track the performance measures at all levels as well as the cascading linkages from one level to the next, is perhaps, the most important factor in the successful execution of the strategy. The meaningful understanding in the link between the various measurements either directly or indirectly to the organization performance measurements will ultimately lead to increased productivity and efficiency.

Hence, this is the required formula if organization wants to see to it that the corporate strategy is executed effectively and achieve the desired outcome.

Performance Management Implementation Strategy