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What Key Factors Should You Be Considering In Your Performance Management Process?

Posted by Sarah Lindner on September 25, 2015

Key factors- performance management process

Why to focus on Business Performance Management

Successful performance management guides sustainable measures and processes, based on the strategies and goals of the company. According to the Actuate study “Measuring and Managing Performance – A Global Study,” the majority of companies are dissatisfied with their Business Performance Management (BPM). 

The reason: although companies take measurements, monitor and analyze their BPM, they fail to uncover the desired benefits from the results. The study identified several factors that are decisive for the success of a company’s performance management process. We have summarized the results.

 What should receive more attention, according to the study

Approximately 3,000 companies were surveyed by the “Advanced Performance Institute” for the study, making it the world’s largest survey on performance management. It was found that the following factors are not yet sufficiently taken into account by many companies, even though they are crucial for the ultimate success of performance management:

1. From the very beginning, leaders should include all departments in the BPM, as well as inform and provide orientation to employees. A performance management system should not be imposed as a new tool. You should rather be able to understand the strategic importance of performance management for the company as a whole and develop an understanding and a personal motivation for BPM, as is already the case for another third of the companies surveyed.

2. A benchmark for measuring success is an absolute necessity for the implementation of performance management. The most successful companies rely on a combination of performance analysis and KPIs: according to the study, 50% of the companies surveyed already do this.

3. The most common technology tools for the automated control of performance management, according to the Actuate survey, are Microsoft Office programs such as PowerPoint or Excel; currently, they are used by 61% of respondents. But that’s not enough: in the future, companies must use the potential of the latest technical developments, because technology has a significant role in the success of performance management.

4. The study also found that many companies still have considerable room for improvement with regards to the quality of their data. Only 10% of companies of the Actuate study reported to have good data quality management. Almost half of the companies have a so-called reactive quality management, thus optimizing only when it becomes necessary.

 

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Topics: Feedback, HR Solutions

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