How To Revitalize Your Performance Management Solution - Part 4

Introductionachieving each of the objectives are intertwined.
My last article on revitalizing your performanceA statement such as "decreased processing times
management solution (Part 3) discussed how towill lead to higher productivity and quicker delivery
develop a winning project plan. In this article, wetime, which will result in higher client satisfaction" is
will start to discuss the initial steps to execute thean example that illustrates a series of cause and
performance management solution identified ineffect relationships.
your project plan.Step 3-Develop Business Line Scorecard
Your performance management solution will beAfter the high-level strategy map is in place, I
based on the results of your organizationalwould present and validate this strategy map with
assessment. For illustration purposes, I am goingthe executive team in a workshop setting. During
to use the same hypothetical company asthe workshop, I would ask the executives to
presented in Part 2 of this series. The results ofarticulate what success will look like once these
this company revealed that the informationobjectives are met. After determining what
generated from its current Corporatesuccess will look like once the organization's
Performance Management (CPM) system wasstrategic objectives are met, you will have a good
mainly for reporting purposes, and not focusing onsense of what the executive performance
other performance management activities, suchmeasures are. The strategy map along with the
as implementing/managing strategy, managingexecutive performance measures together form
day-to-day operations, and meeting its currentpart of the executive level scorecard.
business needs.Now that you have the objectives mapped out
Assuming you are responsible for thefor the highest level of the organization, you will
development and the implementation for thewant to hold another series of workshops with
performance management solution for thiskey managers across the organization to review
hypothetical company, your business case hasthe executive strategy map and measures. During
been approved and it includes the followingthese workshops, ask managers to describe the
proposed solutions:o An Executive level scorecard;objectives their business lines would need to
and,o Business Line scorecards linked to the eachachieve in order for it to contribute to the
strategic objective included in the executive levelexecutive strategic objectives. During the
scorecard.workshops, you will also want to ask managers to
In addition, you and your project team developedprovide an example of how their business line
a project plan to develop, test and implement thismight look if it met its objectives and how
solution. Now, it's time to execute what you havemeeting these business line objectives would
planned. The rest of this article will discuss thecontribute to the executive level objectives. Once
initial steps to execute the project plan using theyou have completed these workshops, you will
hypothetical company as an example.have a good idea of the performance measures
Initial Steps in Executing your Project Planto be used by the business lines.
Step 1-Determine the Organization's StrategiesAfter these workshops are conducted, you will
Since the organization is not fully utilizinghave the formation of an executive level
information to implement its strategy, the firstscorecard along with the formation of branch level
step in executing your project plan will be toscorecards that are linked to each of the
determine what the organizational strategies are.executive objectives.
This can be achieved by reviewing the strategicFinal Thoughts
objectives presented in the organization's businessThe secret in using this technique is to ensure you
and strategic plans and speaking with keyask managers and executives what success will
executives who can articulate and describe thelook like once you achieved a particular objective
organization's strategies.and ask for an example. This is a quick and
Step 2-Develop the Executive Scorecardeffective way to develop key performance
Once the review is complete, I would recommendindicators and, in one workshop, you can map out
that you use the information you gathered fromthe respective strategies and develop key
the executive interviews and the organization'sperformance indicators. Most initiatives take much
business and strategic plans to develop a high-levellonger to complete both tasks.
strategy map. The strategy map should prioritizeIn the next article of this series, I will discuss how
the needs for the organizational objectives to beto set targets.
achieved in order for the organization toThis performance management series is an
implement its strategies and the "cause andintegral part of a book I am currently writing,
effect" relationship between each of theseyour comments and feedback about these
objectives. In this context, cause and effectarticles would be much appreciated.
relationship implies that the contribution by