A different perspective to performance management
Numerous researches have been conducted by numerous people in developing a science to define a framework for accurate performance management. Performance management is seen as a key tactical tool in identifying gaps in a tactical plan which ultimately drives organizations to a successful strategy.
Recently I was asked a question at an interview as to what advantage a good performance management framework, would give to a Chief Operating Officer. Theoretically it provides a clear view of deviations from the desired position. The wise gentleman replied a good performance management framework would give a competitive advantage to the CEO.
Giving a second thought on this response, a performance management framework is actually the first step in the cognitive decision making process of humans, which is the information search process. A performance management system will actually enable managers to make informed decisions.
Thus the question I am now facing is why should a performance management system be aligned with the tactical plan? The initial test in a sound performance management framework is to identify the strategy, have a tactical plan in line with the strategy, and to make the tactics measurable. These measurable KPIs are the key building blocks for an effective performance management system.
But in reality if it is a tool to take informed effective decision, why shouldn’t we start from what are the decisions that we should make. I think the modern trend in performance management leads to an information over load, whether it is dash board concept or a simple employee performance report.
What are your views on this? Should it be a reverse engineering approach where we should start from what decision needs to be made?
