| Performance Management
(PM)
Methodology
Performance Management is the systematic
process by which an organization involves its personnel, as individuals
and team members, in improving organizational effectiveness as indicated
by the accomplishment of its goals and objectives, at the Strategic,
Team and Individual levels.
CRET Performance Management involves
a 4-step continuous improvement process that is implemented in a
cascading fashion through the Strategic, Team and Individual levels
with progress and feedback communicated upward. The steps encompassing
the process are:
-
Definition
- Within a given scope of performance,
development of metrics (with associated targets and owners)
that reflect the goals & objectives
-
Reporting
- Creation & execution of processes to provide visibility
of actual performance against planned activity
-
Analysis
- Evaluation of both process performance and metrics utility
based on actual activity
-
Guidance
- Implementation of recommendations from the analysis phase
- revised metrics, revised targets, and/or recommended process
improvements
The CRET Performance Management
methodology emphasizes the following guiding principles:
- Establish strong, senior management
sponsorship.
- Develop and articulate a clear strategy,
along with the factors critical to its success.
- Create a continuous Performance Management
process that is flexible.
- Actively and continuously communicate
enterprise objectives, critical measures, targets, and performance
results throughout the organization.
- Establish specific, ambitious, and
reachable targets that are based on comparable benchmarks.
- Identify the vital few measures that
are a) aligned to enterprise strategy and b) balanced across
all areas – both financial and non-financial – in
which value is created in the organization.
- Monitor results at specific, regular
intervals utilizing leading indicators to assess progress.
- Determine the correlation between non-financial
measures and financial results and between strategic, team and
individual levels.
- Align reward system with measures to
reinforce desired behaviors.
- Deploy technology to support the Performance
Management process.
- Align the corporate culture with the
Performance Management process.
- Develop and maintain an Improvement
Portfolio as a vehicle for identifying and managing core opportunities
for improvement.
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