Benefits Performance management can deliver the following benefits
- A structured approach to business performance
- Alignment of the organisation to strategic goals
- Links all levels to overall corporate strategy
- Decisions made in line with the organisation
- Faster, fact-based decision making
- Alerts when performance goes out of range
- And more...........
To discover how Performance Management can benefit your business, contact Altimus for a free consultation.
In a Nutshell Performance Management is a process for managing a business in a structured way using key performance indicators and other metrics to measure success.
The performance management cycle is a three step process that repeats on a regular cycle; monthly in most businesses although that is not an essential component. The steps are:
- Plan what you are going to achieve
- Monitor how you are performing against plan
- Analyse how and why you differ from plan
- Plan again
Although conceptually simple and effective performance management framework will allow plans to be created quickly and collaboratively so the plan can be updated on the cycle. Monitoring will be straight forward and be devolved to align responsibility with authority and analysis tools will be available so people can understand the drivers behind deviations from the plan and do something about it.
Velocity of the cycle is important, since the ability to plan quickly enables the business to respond to the changing environment, and means that monitoring is done against a realistic plan rather than something which reflects a no longer current reality. Simplification goes hand in hand with velocity. If the performance management system contains a few carefully chosen KPIs it will operate at a much greater velocity than if there are hundreds of metrics.
A number of software tools are available to help in the creation and management of the performance management framework, the most cost effective of these will probably be Microsoft’s PerformancePoint Server.
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