Operational Learning:
The Performance Management
Dilemma
"In the majority of cases, we estimate
70%,
the real problem isn’t bad strategy,
it is bad execution”
Fortune magazine 1999
The issue...
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Some of the biggest challenges with making strategy happen
are around:
a) choosing the measures that actually influence behaviour and
b) demonstrating that you are making progress and will deliver
to your end results (leading indicators)
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Research shows that although 80% of organisations
measure performance using some form of “balanced scorecard”,
yet 70% of these organisations claim their "scorecards"
are failing them because they do not provide concise, predictable,
actionable information.
They are doing performance measurement, rather than performance
management. (For source see below)
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Looking in more detail, one survey showed that the average
Senior Executive has 132 measures (83 financial, 49 operational). Another
survey counted similar numbers with 62% of measures financial
and 76% as lagging (historic) measures. They
say it is all too late. There is too little customer information;
little indication of how the organisation will “Learn&
grow”. They have lost focus on strategic goals and
the underlying drivers of performance. (For
source see below)
-
So, how can you improve performance management?
Help with this issue... Our service means that...
-
You are in a position to measure and manage performance far
better.
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You have a clear focused performance measurement and management
system
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You can distinguish between measures that are designed to
influence behaviour and the end results; and those used to
diagnose issues and simply check the overall state of the
organisation.
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Research shows that well implemented systems such as ours
have the following level of effect (see sources)
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Agreement on the strategy amongst senior executives.....doubles
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The strategy is understood by far more people...rising
from around 8% to 60%
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Sales per employee rises...potentially up 90%
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Total shareholder return rises.... up 24
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In summary we will help you design, implement and operate
a performance management approach that informs you, puts you
in control and lets you make sure your strategy is happening.
You are far more comfortable delivering your results and knowing
that you are having the right effect.
How we help you...
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A simpler, yet more effective performance management approach.
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Ensuring you have the information at your fingertips.
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Helping you choose and implement technology that makes allows
you to see the wood for teh trees, and the trees themselves,
if you want to..
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A clearer way of reviewing information, between meetings
and within them so you focus on facts, decisions, and actions,
-
In summary we will help you design, implement and operate
a performance management approach that informs you, puts you
in control and lets you meke sure your strategy is happening.
More on Operational
learning
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