Managing for Success
Whilst business planning is concerned with setting SMART profit targets, the essential role of Performance Management is to provide the operating systems and procedures to enable employees to control business processes and successfully implement the plan.
The diagram below shows the relationship between business processes, functional responsibility and typical key performance indicators (KPI’s).
The table below shows a 5 stage procedure for the implementation of Performance Management:
| Stage | Objective | Process |
|---|---|---|
I |
Ensure responsibility for achievement of the budget |
Establish roles and responsibilities for managing and reporting key performance indicators for sales and marketing, sales order processing, financial control and employee contribution to profit. |
II |
Achieve operational consistency |
Provide simple and easy to use operating systems and procedures to enable employees to do the right things, the right way at the right time. |
II |
Generate accurate performance reports to aid decision making |
Use management information and performance reporting systems to collate and report performance at all levels within the business. |
IV |
Regularly review business performance |
Hold regular management meetings to review actual versus planned business performance. |
V |
Introduce continuous improvement |
Use performance reports to continually look for ways to improve operational performance and improve customer service levels. |