What is Performance Management?
Performance Management itself is an essential part of an organization’s Business Operating System (BOS), enabling the tracking and managing of performance on a strategic level. In a BOS, organizations design their business in both strategic (business design) and operational (operational design) level, and Performance Management illustrates if the execution of the design produces the desired results. This enables the organization to take actions in an effective and efficient manner.
More specifically, Performance Management means:
- Setting direction for the organization by defining and cascading strategic objectives
- Monitoring the achievement of objectives by defining and monitoring KPIs (Key Performance Indicators)
- Taking actions to achieve objectives through strategic initiatives and projects
- Defining ownerships and responsibilities to manage performance
Achieving strategic objectives and targets is important for every organization and Performance Management is the discipline supporting this achievement. Performance Management is about setting the right direction for the organization, taking actions accordingly and continuously monitoring the execution.
Why Performance Management Fails
Successful Performance Management is very challenging without appropriate software or IT support.
Typical challenges are:
- Relevant information is scattered all over the organization: no big picture on performance
- Communication around performance is cumbersome
- Data collection and reporting is time consuming
- Performance data is inaccurate and outdated
- Maintenance of the performance management system becomes almost impossible
The mentioned challenges are so significant that they often cause organizations' failure in Performance Management initiatives. This means that the right kind of IT support is a key factor in successful Performance Management.
How Software Improves Performance Management
Sophisticated Performance Management software enables the monitoring and management of objectives, KPIs and Initiatives, cascading them throughout the whole organization and defining ownerships and responsibilities. Powerful collaboration functionalities enable setting action plans to improve performance. Integrating data from operational IT systems or manually entering data are also key functionalities. Easy maintenance of performance information, such as objectives, KPIs and Initiatives, or projects, in addition to beautiful and easy-to-navigate dashboards for performance monitoring are also in the core of a Performance Management software.
Here are some of the highlighted benefits of a Performance Management software:
- Improved control of performance and strategy
- Effective communication of performance and strategy
- Proactive decision making and actions
- Saved time to focus on analysis and improvement
Unique Performance Management Solution
QPR Metrics is a robust and flexible software solution for performance management and strategy execution automation. There are also possibilities to monitor process performance with process KPIs, to extend to people performance management, as well as to link to quality management.
The rich set of performance management functionalities and excellent user experience make QPR Metrics an optimal solution for organizations in both public and private sectors.
To learn more about performance management and QPR Metrics, check out our webinar below.