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Performance Management
Performance needs to be managed, otherwise, the law of gravity will take over, and targets set will remain, as targets and will not be translated into real results.
Our approach towards enabling performance management, at the strategic level would entail building an organisation`s capabilities, based on an effective business scorecard management. This transforms strategic plans into actionable tactics and closes the gap between desired outcomes, and results that make the organisation world class leaders.
It also includes embarking on an organisational culture transformation through Total Quality Management (TQM) and also realistically, looking at the potential business risks, and managing the impact of such risks, so that the operational gains are not marginalised, or worse negated due to unattended risks and its effects on the bottom line.
It was the management guru, Peter Drucker who said this, “ what you cannot measure, you cannot manage”
To this end, the value of scorecards is that it can provide the framework for translating strategy into operational terms, that will then drive actions that help achieve the results desired. The use of scorecards need to be clearly understood, as in themselves there is no magic and no inherent power, to achieve the desired outcomes, however, if the metrics, and the measurement, are carefully established, so that the organisation's strategy, is clearly understood by all levels, all business units and more importantly aligned across, so that all efforts can be maximised, instead of being counter productive, then scorecards can become powerful tools to score!
To summarise, business scorecards, facilitate and enhance:
1) the links between strategy and daily operations and drive results
2) alignment of priorities and allocation of resources to support strategy
3) communication of strategy to all levels, company-wide
4) to make strategy a continual process, based on PDCA approach
5) to equip leaders and managers with powerful decision making
Every organisation strives for excellent performance in the market place. A successful organisation possesses the culture of setting clear expectations for organisational performance as well as structured reviews and monitoring to ensure that they are met.
Key Performance Indicators (KPIs) provide the organisation with the needed direction, motivation, and the means to measure the health of the organisation. Good KPIs are specific, measurable, aligned to the organisational vision, and provide the impetus to shape strategies and plans.
If your organisation is looking forward to bringing your business to the next level, or a matured organisation that seems to be in a limbo, this is the right subject for you.
Why should my company develop KPIs?
A strong working culture emphasising on performance with clear, measurable KPIs provides the direct measurements for organisation to know current status against planned goals. Thus providing the platform to set business strategies and line up action plans to meet corporate directions and business plans.
What are the core principles of KPIs?
• Balanced approach to exploit all business critical success factors
• Clarity of organization directions
• Performance-based working culture
• Accountability and visibility
• Linking strategy to actions to results
Benefits
• Clarifies the organisation’s vision, mission and strategies
• Facilitates consensus and ownership by the executive team
• Alignment of organisation efforts with business goals
• Integrate strategic planning with implementation
• Early allocation of capital and resources
• Promotes performance-oriented working culture
• Promotes teamwork
• Established a common operational language throughout all levels.
For any organisation to achieve its business objectives and to sustain this success, it is imperative that all forms of business risk (quality, safety and health, environment, financial) and their potential impact, must be managed effectively.
In 2009, ISO has published 2 international standard
- ISO 31000: Risk Management :- Principles and guidelines, and
- ISO/IEC 31010 : Risk assessment techniques.
Our approach is based on the management framework described in the standard, to help implement an effective risk management system :
Figure 1 : Risk Management Process
Source : BS EN 31010 Risk Management - Risk Assessment Techniques
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