Saturday, February 24

Integrated performance management

Integrating the various components of your corporate performance management initiative is going to be challenging. But sometimes the best organizational improvements you make are the most difficult. Increase the effectiveness by going beyond just measuring past performance for the sake of measurement -- integrate individual compensation, recognition and rewards into the overall process.

This CPM blog explains it nicely. And thanks to Frank Buytendijk, Hyperion's VP of Corporate Strategy, for his performance management blog.

So why link people to the high level performance measures?

One word -- effective-motivated-employees!

Having key performance indicators is a start but typically are abstract to the point where the employee doesn't understand where their contribution to the company fits into the performance strategy. The hard part is taking the process from a strategic level to an operational level and clearly linking individual performance to the overall corporate goals.

But once there, you will realize the benefits of your hard work!

Here's a YouTube clip about combat readiness for an underperforming navel vessel. And how the captain used communication to improve productivity.

Now go and integrate individual performance to the overall corporate strategy so employees understand why they are spending most of their day at work!


Paul van Erk said...

Hi Tom,

Thanks for your post at
I find it great to see you fully agree on the subject of organizational alignment and accountability. At Deloitte we are convinced just an IT-system will not do the job. To fully benefit from CPM a change in culture and communication is essential. The tool should not be the result, improved and better managed performance is what really benefits the company.

I was not aware of your blog untill now. For sure I will visit it often in the future. I really enjoyed your post on BI fights criminals with GIS ( This is a good example how BI can be use in not just everyday industries!

With regards,

Paul van Erk

Tan said...

This all sounds great and I've always thought our team should do this. But bringing my mgmt peers from the strategic to tactical performance of our company has been difficult.

We're mid-sized and need to be performance-based at lower levels of our company. We're trying to come up with manager level goals to link with the eight company values. We're an Internet company so there ain't many examples for us.

Your post will help and I hope we see more on this.


James said...

One of the interesting challenges for organizations is how to shift their performance management into action. Sometimes this is about people, sometimes it is about systems. Combining performance management with decision management can help generate alignment from strategy to operations to information systems.