Performance Management - achieving strategic objectives
Strategic execution remains a major challenge for many organisations, with up to 70% of organisations failing to execute strategy successfully. Performance management is one of the key dimensions of strategic execution.
Performance management is about achieving strategic objectives. It is about clearly defining and communicating objectives across your organisation; aligning your organisation to meet them; and continuously planning for, monitoring progress of, and analysing exceptions to ensure they are achieved. Developed in the early 1990s the Balanced Scorecard, along with the Strategy Map is one of the most widely adopted performance management methodologies today. However many organisations continue to find Strategy Map and Balanced Scorecard deployment challenging. Others fail to grasp the opportunity presented by these tools to improve strategic execution and increase revenue whilst driving out costs.
In our experience Strategy Map and Balanced Scorecard projects often fail due to a lack of a compelling, well-understood business reason for undertaking the change programme. Additionally there is often a failure to address the business change and technology aspects of this type of project in an integrated, aligned manner.
Manigent works with its clients to identify the compelling business reason for change and to define a clear, tangible return on investment. We work with management teams to develop capabilities in five key areas:
Manage – the capability to balance leading and lagging objectives and indicators.
Align – the capability to understand which strategic activities most effectively drive performance.
Monitor – the capability to understand what current and past levels of performance are.
Analyse – the capability to understand why performance is at current levels.
Plan – the capability to model and stress-test future levels of performance.
Key benefits of performance management
- Drive revenue improvements.
- Improve cost efficiency.
- Reduce head count, cost and complexity related to performance management reporting.
- Simplify measurement by measuring only the right things.