| The other day I was asked how to create a | | | | for new, creative methods of managing |
| performance team that can tackle the challenges | | | | performance. |
| of the modern enterprise. The selection of the | | | | Performance Management Team Success Factors |
| performance management team is critical to the | | | | There are several factors outside of the |
| success of any large project. This article focuses | | | | performance management team's power that will |
| on the structure, skills and success factors for | | | | play a critical role in the success of the |
| your next large performance management | | | | performance initiative. These are the factors that |
| initiative. | | | | require support from the rest of the organization. |
| Centralized vs. Decentralized | | | | The performance management team must have: |
| All performance teams have one thing in | | | | - support and commitment from the CEO |
| common, that is gathering key metrics and | | | | - a direct reporting line to executive management |
| reporting them to key stakeholders. How they | | | | - access to systems, data, organizational charts, |
| gather this information depends on the | | | | and processes |
| organization's structure. There are two ways | | | | - management support and full commitment from |
| performance teams gather and report | | | | their staff |
| information; centralized and decentralized. In a | | | | - a liaison for each business unit to bridge gap in |
| centralized structure, the performance | | | | communication and operational knowledge |
| management team has access to all of the | | | | There are other success factors to be mindful of |
| organization's key resources and is responsible for | | | | when time and budget constraints are introduced. |
| running the queries, ensuring accurate results and | | | | For instance, if your organization is looking for an |
| reporting on performance throughout the | | | | advanced solution integrating existing systems |
| organization. In a decentralized structure business | | | | with multiple business intelligence tools, the |
| units are responsible for gathering their own data, | | | | performance initiative will most likely be delayed |
| and the performance team sends out data calls | | | | at various points due to purchasing, compatibility |
| where the business units provide the metrics to | | | | and implementation processes. If your organization |
| the performance team. The performance | | | | is looking to improve performance with existing |
| management team then assembles these | | | | systems, you may not have the luxuries of the |
| collected metrics into dashboards, scorecards and | | | | new, emerging tool's bells and whistles, but the |
| other graphical displays. Many organizations, | | | | good news is much can be done with standard |
| especially those with business units that handle | | | | applications such as MS Excel, Access and |
| sensitive data have a hybrid structure. This is | | | | SharePoint... not to mention the learning curve. In |
| where the performance team is responsible for | | | | fact, one goal of your performance initiative may |
| producing some of the metrics while business | | | | be to maximize efficiency with the existing tools |
| units are responsible for providing some of their | | | | while at the same time researching new tools that |
| metrics to the performance team. The ideal | | | | will be the best fit for your service and |
| situation is for the team to have full reporting | | | | infrastructure. A performance management |
| access to all major systems, where accurate | | | | initiative with existing tools may require a larger |
| results can be guaranteed and where those | | | | team because some older tools require manual |
| reports are accessible for business unit managers | | | | processes to retrieve and assemble data. Other |
| to monitor and ensure desired service. | | | | success factors include: |
| Performance Management Team selection | | | | Team Leadership - As mentioned earlier, team |
| The key person on the performance | | | | leadership is the most critical success factor for |
| management team is the team lead. A highly | | | | the performance management team. A leader |
| skilled team lead is the key to the success of | | | | with strong performance management skills and |
| your performance initiative. Whether this person is | | | | the ability to develop others virtually guarantees a |
| within your organization or an outside consultant, | | | | successful performance initiative. |
| they should be dedicated 100% to this project, | | | | Shared vision / approach - The ability for an |
| should be highly experienced with performance | | | | organization to clearly state it's goals and |
| measures, more knowledgeable in the areas of | | | | objectives and gain buy-in among the employees |
| performance than senior management, and should | | | | along with a synergistic team that can carry out |
| be able to motivate the people whose | | | | their responsibilities is vital to performance |
| performance will be measured and reported on. | | | | success. |
| The size of your team will depend largely on the | | | | Technology support - While a skilled performance |
| size and complexity of your organization. A | | | | management team can improve performance |
| performance team in a centralized structure will | | | | with very little tools and only an effective |
| be larger than a team in a decentralized structure, | | | | approach, with proper technology to support the |
| because more resources are necessary to gather | | | | team's needs, and the proper data to drive |
| the performance data and communicate with the | | | | decision making, there is almost no limit to the |
| business units. In most cases the management | | | | improvements an organization will yield. |
| team will include subject matter experts in fields | | | | Senior leadership buy-in - It is critical that senior |
| such as data integration and industry related | | | | level management and executives buy into the |
| processes. These roles will be discussed further in | | | | performance initiative. Studies have shown that |
| the execution phase. The management team | | | | senior level management that places value in |
| should be well aware of the issues facing the | | | | leveraging performance data into overall strategy |
| organization from the customer, employee, senior | | | | increase their organization's chances for success. |
| management and key stakeholders perspectives. | | | | Compound this with strong performance |
| They should understand the financial and | | | | managers that are able to translate the strategy |
| operational goals of the organization. And most | | | | into actionable measures and these organizations |
| importantly, they must be experienced with | | | | are often able to benefit from extraordinary |
| analyzing data and providing feedback on | | | | results. |
| suggested measures, while constantly searching | | | | |