Every serious company traces its performance in some or other way. Performance management is a mechanism to control business activities. With the introduction of the Balanced Score Card, performance management became more interesting, because it widened the scope of performance management with non-financial figures.
Yet, the easiest part of performance management is still finance. Any (stock exchange listed company) publishes it financial performance. This is the performance of the company as such.
A next step in performance management is to address the area between the overall results of the company and the individual performance of an employee.
You should address this issue with gloves but the attempt is worth while; if you are able to motive people as if they are their own business within the group, both the individual and the whole organization will benefit from this. The individual player will want to know his role and his contribution to it. The organization as such benefits because of an improved monitoring and control approach.
The Balanced Score Card uses the process view as a link between the Client and financial view at one end and the (individual) learning and growth view on the other end. When you implement this, you shouldn't forget that other resources (systems and infrastructure) are part of this process view.
The balanced score card will only provide you the empty frame. If you want to make a quick start by linking the financial view up to the impact on the individual performance of the employee, you should consider the productivity matrix (Google Search: productivity matrix). On a corporate level the matrix will help you define the profile of your business. On an individual level you may check the individual contribution by assessing the personal productivity contributing to the whole.
There is still a lot of work to do, but this is a start that will give you momentum.
© 2006 Hans Bool
Hans Bool is the founder of Astor White a traditional management consulting company that offers online management advice. Astor Online solves issues in hours what normally would take days. You can apply for a free demo account
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