Performance Management System

“The test of an organization is not (its) genius. It is its capacity to make common people achieve uncommon performance.” – Peter Drucker, Father of Management.

A sustainable organization is one which strives to get better every day. One key element to this continual improvement process is through Performance Management System (PMS); a system that is designed to improve your organization as a whole through constant evaluations and feedbacks.

With PMS, we can help your organization to be able to achieve the following objectives:

• Identifying Individuals & teams’ performance indicators and set the targets;
• Synchronizing the performance indicator, targets across level, and functions;
• Designing a scoreboard for monitoring performances.

By completing these three objectives, your organization is able to bring clarity on performance indicator and targets; and helps your management to identify critical & forthcoming potential issues.

 

 

 

 

“What Gets Measured, Gets Managed”

– Peter Drucker

Peter Drucker’s statement is especially true when it comes to measuring performance. Only from a measured performance, not only an organization can measure its performance, but also increase it.

To perform is to create value, but with such a generic definition, how can an organization define “value?” To define what constitutes as value, the desired end-state must be articulated first. With the end-state clarified, value creation is then defined as anything that brings the organization closer to its desired end-state.

 

With a well-articulated value, how can we help  your organization utilize PMS to its advantage?

1. Align and synchronize your KPIs. All of your KPIs MUST align with your organization’s values and other KPIs. Only then, your organization can start to:
   1. Commit action plans, resources, budgets;
   2. Develop key performance indicators & weights;
   3. Formulate strategic initiatives & routine improvements;
   4. Identify strategic objectives;
   5. Articulate vision, mission, and values.

 

2. Don’t forget the meaning of ‘Key’ in KPIs! Hint: NOT too many! Here’s how the distribution should generally look like:
   1. Key result Indicators (10%): Tells how you have done in a perspective;
   2. Performance Indicators (80%): Tells what you need to do;
   3. Key Performance Indicators (10%): Tells what you need to do to increase performance dramatically.

 

3. Your objectives & goals must be S-M-A-R-T-E-R:
   1. Specific: The definition of your goals must be well defined. Use 4 W (what, why, who, and where) to evaluate your goals. It is also important to identify the constraints and requirements that you have to face in order to achieve your organization’s goals.
   2. Measurable: As mentioned before, a good goal is a measured one. Measurability is crucial to justify whether your organization is moving closer its goals, or away from them.
   3. Attainable: Ideally, you want to have goals that are within the reach of your organization, but still require your team member to stretch out and expand their abilities.
   4. Relevant: Goals should be relevant with your organization’s vision, mission, and values. Relevant goals will drive your organization forward.
   5. Time-bound: without a target date, your goals will simply be a dream, treat your goals as: “A dream with a date.” Clear deadlines will build a sense of urgency within your team member.
   6. Exciting: Goals should be exciting, they should challenge you and your team members.
   7. Resourced: Identify all of the resources needed to achieve your goals. Then, assess your organization’s current resources, does it have all of the required resources to achieve its goals? If not, find ways to meet all of the required resources, the lack of resources shouldn’t be a deterrent for your organization to achieve its dreams.