Core Components of Performance Management

What does performance management mean to you? What’s the difference between managing performance and driving performance?

What does it mean to create a performance-driven organization?

Mark Stiffler, CEO of Synygy Inc. offers these insights:

A unified approach to performance management—one that ties together the organizational and individual aspects— consists of the following components:

• Align the objectives, resources and budgets of the different parts of the organization and the goals, opportunities and quotas of individuals.
• Measure organizational and individual performance.
• Reward individuals for performance.
• Report organizational and individual performance.
• Analyze organizational and individual strategy execution..

BOTTOMLINE: "For many organizations, becoming performance-driven might cause a cultural upheaval that, at least in its early stages, results in turmoil, a perception of chaos and a lot of discomfort. It can trigger turnover of long-time employees who do not like to be held accountable for goal achievement and who feel entitled to a certain level of pay regardless of their performance. And it might cost money as you make the initial investments.

But with the leadership and commitment of senior management, becoming performance-driven will lead to dramatic improvements in performance in financial terms, with respect to employee productivity and morale and in the flexibility to quickly adapt to change. The effort will be well worth it."