Performance Management System

Creating organizational focus, strategic alignment, and a shared mental model

① Set Objectives: decide on what you want to achieve and set stretch goals

② Empower People: develop employees, help them grow, and give people the tools and the support and encouragement to improve their performance

③ Measure: decide how to measure performance against these objectives

④ Provide Feedback: tell people how well they are doing

⑤ Reward People: build performance into the reward system

Successful Company

Performance-based Company

Performance Management

Benefits

Examples

Effective KPI

Benefits of Gain Sharing

Set Right Objectives

Setting right objectives is critical for effective performance management. Such objectives as higher profits, shareholder value, customer experience, customer satisfaction may be admirable, but they don't tell employees what to do. "They fail to specify priorities and focus. Such objectives don't map the journey ahead – the discovery of better value and solutions for the customer," says Fred Wiersema, the author of Customer Intimacy.