One of the most important aspects of management is to monitor and assess the business performance. Performance management makes sure that the organization has achieved its goals and highlight lack of performance wherever apparent.
How this could be possible? Where should be the starting point? How should the performance be monitored? How should it be reported? How should the results be used for improving future activities?
Answers to all of these questions could only be provided by institutional level performance management system specifically designed for respective organizational purposes.
Institutional performance is not only related to the organization or its employees including management. It is also related to possible respective entrepreneurs, customers, dealers, suppliers etc.
Performance management is usually linked with individuals which is not true at all. It should define how an enterprise work rather then only individuals.
Institutional performance is not only related to the organization or its employees including management. It is also related to possible respective entrepreneurs, customers, dealers, suppliers etc.
Performance management is usually linked with individuals which is not true at all. It should define how an enterprise work rather then only individuals.
Why performance management?
“something that can not be measured can not be controlled”.
What can be done to understand whether an activity is well carried out or not?
Can an activity be carried out as much effectively as possible by only willing to do that;
· successfully,
· in shortest time
· without any problems
· with minimum cost
· with at most satisfactory level?
surely NOT…
The terms like “shortest”, “best quality” etc. can have different meanings for different people. A job done in 3 hours could be short for someone but long for others. It is therefore very important to define a common metrics which could mean same thing for all employees. Main goal of a performance management is to provide these metrics.
Performance management provides the following benefits to the organizations.
Performance management
· ensures that all activities carried out within an organization are directed towards business objectives and establish a business discipline.
· Highlight resource requirements in order to satisfy predefined objectives and targets.
· Makes clearly known that business objectives are satisfied completely or to some extend highlighting the lack of performance areas in order to establish improvement plans.
· Provides critical information and knowledge about the business progress to top management.
· Identify performance trends for certain type of events and activities.
· Increases accountability of the staff regarding business objectives
It should be noted that performance management is only a tool indicating the progress of business towards objectives. It does not guarantee the job completion of doing the job without any mistake. It provides traceability of business activities in conjunction with business objectives.
What is the success of your enterprise?
Organizations should provide products and services to their customers with required level of specifications and quality as well as fair prices. In order to ensure this, set of activities would be carried out as much as planned. The following questions need to be answered.
· Are those activities the right ones?
· Is the enterprise capacity fully used for the benefit of the entrepreneurship?
· Would that be possible to reduced time and cost to produce products and service and speed the production related process up or increase the production rate?
· Do the activities of today ensure the continuity of the enterprise to future.
A good performance management system should provide respective answers to above questions. Performance management can direct the managers to what limitations and extend the company resources in all areas to be forced.
5M and Performance Management Model (PMM)
5M considers performance management system as one of the crucial components of successful business and developed a respective model so called 5m-PMM in order to transfer theoretical knowledge into practical life.
5M-PMM is oriented by strategic planning process and takes enterprise strategic plan as a baseline to trace the performance of business activities starting from procurement to high level planning. It relates high level strategies to the very low level worker tasks within the shop floor and offices and provides respective links.
· PMM Modeling Plan
· PMM Development Plan
· PMM acceptance Plan
· PMM Knowledge Dissemination and Sharing Plan
· PMM Monitoring Plan
· PMM Data Collection Planı
· PMM Analysis Plan
· PMM Reporting Plan
· PMM Feed Back Plan
· PMM Improvement Plan
· PMM Future Focus Plan
Success of performance management system is directly related to the success of strategic plans. Therefore, realistic and accurate plans are important in order to highlight the current situation of the enterprise which will be triggered for the improvements by performance management system.
Please see the references on implementing 5M Enterprise Performance Management activities
Please contact us for more information on 5M-PMM model and related activities.
