In an exclusive report from BusinessWeek Research Services entitled "The Payoff of Pervasive Performance Management,"researchers found:
- Two-thirds of senior executives whose companies use performance management say it has a positive effect on shareholder value.
- Organizations exercising world-class enterprise performance management, including widespread dispersal of the tools, enjoy 2.4 times the three-year equity market returns of typical companies in their industry.
- The broader the distribution of business intelligence and performance management tools, the higher the potential return on the investment.
- A successful performance management program realizes that not all employees need to view data in the same way—or to view the same data.
- The biggest return on investment can come from extending performance management to front-line workers, like telemarketers and collections staff.
BOTTOMLINE: While these findings are for much larger businesses, the same rules apply for small and midsized businesses. When deploying any kind of performance management methodology or tool, it must be used by all team members, not just some.
It's what we at Six Disciplines refer to as total organizational engagement. Since strategy execution is the biggest challenge in business as it involves every person, every day, it only makes sense that everyone must be involved - not just those who create strategy.
Find out more by reading Six Disciplines Execution Revolution.