Effective Performance Management improves the breath of performance reporting, counter-acts the phenomenon of “Strategy Dilution”, establishes accountability for results throughout the organization and is used as a value creation dashboard.
Deloitte has worked with many organizations throughout various sectors of the economy and we have found there are ten key success factors to improved performance.
• A clear view of strategy, purpose and vision
• Strong leadership and demonstrated commitment
• Focus on promoting outcomes and delivering results
• Align measures at all levels to corporate objectives
• Limit measures to the very few that matter
• Engagement and empowerment of staff
• Consensus with stakeholders over goals and timelines
• Integrate Performance Measurement into management processes
• Link performance to compensation
• Continuous learning and evaluation of results
Through Performance Management all key facets of strategic performance (i.e. financial and non-financial) are defined and aligned at all levels of the organization. It provides a framework and a tool to communicate the desirable behaviours of managers and staff that contribute the most to achieving organizational goals and objectives.
Performance results are compiled, analysed, evaluated and communicated periodically to provide timely information for management and decision-making purposes, while at the same time are integrated into core processes such as planning, target setting, reporting, human resources development, compensation and rewards.