Managing Performance

For Best Results

Performance Management is an

Output based management system,

that measures results.

People are more motivated when they

work towards goals.

The Key is to Focus on Outputs

Inputs .. .. .. Outputs

A c t i v i t i e s

Measure Here

• What’s expected of me?

• How am I doing?

• What’s the big picture?

Employees Want to Know

Designing A System

Key Definitions

• Outputs Key Performance Areas KPAs

• Measures Key Performance Indicators KPIs

• Scorecards Team KPAs and KPIs

Examples

Sales Customer Complaint

Resolution Product Deliveries

Satisfied Employees

• 9%

• < 48 hrs

• 95%

• 20%

• % Sales increase

• Cycle time

• % Deliveries on time

• % Employee turnover rate

“If you measure it you can manage it”

KPA Target KPI

Aligning Individual Goals With Organisational Objectives

Perspectives Objectives Measures Action

Plans

Financial

Customer

Internal

Processes

Learning &

Growth

The Balanced Scorecard

The Balanced Scorecard

• Organisational Performance Management Tool

• Can be applied to teams at all levels

• Measures results across 4 perspectives

Financial

Customers

Internal Processes

Learning & Growth (people)

Performance drivers

• Financial Results

• Everything dependant on skills and motivation of People

• Value delivered to Customers

• Quality of Internal Processes

“Measures in all 4 perspectives for a balanced picture”

dependant on

dependant on

The Cause & Effect Relationships in the Balanced Scorecard

Monitoring Performance

Scorecards Become the New Management Agenda

• Review results

• Recognise achievement

• Action plans

• Graphics

Individual Performance Reviews

• Based on objective measures

• Regular feed back during the

year

• Linked to PDPs and Incentive

Schemes

Case Studies

• Vehicle turnaround times 2 hrs 20 min

• Sales – distribution channels 32% 65%

• Product quality > 2 > 1

• Brand awareness 3 1

• New products 4 6

Performance Indicators

From To

Saving in Wastage

$30 mio p.a.

The Art of Performance Management

Real Performance Management does not just create an efficient

administration vehicle for the annual ritual.

It awakens an aching desire for me… “ to be the best I can be “

and for us

“ to be the best we could be as a team and an organisation “

Then we can say we have ignited the potential hidden in our most

valuable resource, our human capital.

Performance Management

Systems

by

©IMAGO Business Solutions 2009 all rights reserved