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Home > Performance Management
Overview
Performance management - what
is it?
Organisations have spent billions automating
manual systems without being able to quantify the value or
optimise the processes. Most current attempts to analyse
the effectiveness of operational systems fail to put results
in the context of a company's goals and objectives. Add
to the mix a massive push for performance accountability
and real results across businesses and organisations alike — and
it should come as no surprise that more and more organisations
are emphasising effectiveness over mere efficiency.
Performance management
is a new term used to describe this movement towards effectiveness.
It allows organisations
to become more strategic, deliberate and accountable in
their actions, and improve operational effectiveness by
helping communicate mission and goals, set operational
objectives, and continually manage performance against
those objectives.
What is Performance
Management?
According
to Ventana Research, performance management is the business
strategy and methodical process to manage
execution of an organisation to a common set
of goals and stakeholder objectives. Simply speaking, performance management
uses both methodology and technology to help manage your organisation
by aligning
execution with strategy.
Aligning execution with strategy™
A performance management solution can help
organisations align organisational units, operational processes
and individuals with pre-defined goals and objectives,
born of a common strategy. With the continual loop of insight
provided by performance management solutions, organisations
can easily manage their ongoing effectiveness to improve
overall performance against their goals and objectives.
How
Does Business Intelligence fit in?
Performance management and business intelligence are often
confused because they are closely related. Think of performance
management as the next generation of
business intelligence. Business intelligence helps organisations measure
and
monitor their performance to understand organisational units, business
process,
and individuals, whereas performance management helps organisations manage the
business by comparing the measurements derived from business intelligence against
pre-defined goals and objectives.
Business intelligence = measure and monitor
performance
Performance management = motivate, measure,
monitor and manage performance against pre-defined goals
and objectives
Sound scary? Too advanced for you?
Stop Worrying! You are further down the track than you realise!
The
good news is that you probably already have many of the key
ingredients for success. If you have goals you’re
working toward and projects you’re working on, you’re
already on your way. And your justifications for your budgets
and plans are the raw material of strategy. So what’s
missing? Alignment. Without alignment, organisations too
often cultivate miscalculations, waste, and conflicts
and consequently, fall short of goals. Unlike approaches
that only emphasise doing the work right, alignment helps
ensure proper focus on doing the right work, the right things
at the right places at the right times for the right reasons
to drive achievement of organisational strategy.
Pilot’s
Performance Management products help you put the pieces in
place so that you not only communicate your
objectives and the initiatives you are putting in place to
achieve them but tell you how well you are performing against
the objectives you have set yourself as an organisation or
division or department.
Want to learn more about performance management?
Click here to download the
free Intelligent Enterprise special E-Book on Performance Management
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