KPI and Performance measures
Performance Measures Applied Manual or Electronic Manual
Performance Management/Measurement Electronic System
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The future has arrived. Throughout the world, private industry, the public sector, local government, small business and society at large have experienced unprecedented and extraordinary change. This revolution is underpinned by pressures and trends, all of which are set to be around for the foreseeable future.
The globalisation of world markets is facilitated by the ease with which buyers and sellers can find each other. Never before have we been able to communicate as we do now or will in the future. No government regulations or trade barriers will be able to withstand the pressure brought to bear by two parties who know about each other and want to do business. Customer demands will be hampered less and less by the absence of information about the range, quality, cost, quantity and timeliness of the goods that can be provided by prospective suppliers. Customer expectations have been rising proportionately with the growing capacity of suppliers to deliver the right amount of quality goods and services at the right cost, on time, every time. So the competition is intensifying for customers' hearts, loyalty and dollars. Many organisations are faced with a stark challenge: adapt or go out of business.
Every person in an organisation is employed to deliver results (outputs) which contribute to the organisation as a whole. Effectiveness is judged by the extent to which internal and external customer demands for outputs are met.
In the long run everyone is measured against whether the customers' demands and their many and varied expectations for outputs have been satisfied.
The people who place expectations for outputs are customers, consumers, or users. Customers can demand tangible and visible products like processed milk, beer or pencils, as well as intangibles like ideas, advice or services. Customers may include shareholders, the board of directors, team members, other managers, and yourself, as well as external customers.
While the interests of customers are important, consideration also needs to be given to the expectations and demands of other groups of people whose needs must also be satisfied, including suppliers, government and the general community. To optimise the organisation system there needs to be an emphasis on the rigorously measured demands and expectations of all stakeholders.
Most performance management systems fail because they do not make the crucial link between strategy and daily actions and operations. They focus attention on tactical feedback and control of short-term operations.
A good performance management system provides a comprehensive framework that translates an organisation's vision and strategy into a coherent set of outputs, performance measures and targets.
By developing a set of outputs, measures, targets and feedback systems for the leadership team, and then cascading these down the organisation in such a way that they are localised, meaningful, understood, owned and aligned, the link between the organisation's strategic goals and the daily actions of the people doing the work can be made.
Resource allocations, annual budgets and strategic decisions can be driven by the strategy. Performance reviews can be used to monitor individual performance which in turn monitors organisational performance. Reward systems can be designed to reward organisational performance achievement. The vital link between what people are doing on a daily basis, and strategic goals can be made.
A good performance management system must mobilise the people in the organisation in such a way that their daily activities bring them closer and closer to strategic goal achievement. The performance management system must be a systematic process to implement strategy.Tags: organisation, strategic, performance, management, people, expectations, demands, daily, system, customers, customer, link, systems, measures