Performance Management

Performance management refers to how an organization leverages its assets to achieve short-, medium- and long-term strategic goals. Through an approach intended to improve value creation, performance management requires individual to Control cost without sacrificing future growth objectives. The nature of current incentives the challenge is to meet short-term targets while preserving strategic growth initiatives. Individual must Understand what drives cost and profit. Without this understanding, managers are unlikely to allocate resources appropriately and know where to make improvements. At best, it may generate suboptimal results at worst, it could inadvertently and irreparably destroy value. It also improve agility. Organizations that can identify opportunities and threats more easily than their competitors, understand the implications, update strategy quickly and then execute that strategy consistently across the organization will be the winners and also identify and respond to environmental, social and economic risks and opportunities by focus on the lower level line of people, profit drives increased brand value through innovation, improves internal efficiencies and accountability, and engenders the loyalty of consumers, employees and other stakeholders. By using the system, it helps organizations improve performance by focusing on accountability, culture toward measurement and transparency. The system also delivers performance management software and services to help executives to see a clean and simple reality by ensure data quality, transparency and relevance for action. It also helps to manage and align resources (people, money and technology) to strategy. Understand how cost and value flow through the organization and what drives or influences variation. It also improve foresight and optimize value by prove which KPIs drive strategy; forecast and predict future outcomes with accuracy; and optimize resources and activity for maximum value creation. It is help individual to learn, share, codify and adapt. It also help individual understand why things succeed or fail, and update and communicate strategic change quickly and consistently for improved agility and it also evolve through experimentation and innovation by simulate and plan options based on facts, not intuition, and prove which options deliver the best balance of risk and reward. Difference from evaluate the performance using manual; the system performance management is a journey with multiple phases. Many vendors focus on surfacing historical information allowing organizations to see what's happened in the past, and then manage and report on performance. its goes further to help improve, learn and evolve based on facts, not intuition. It is database and is viewed by the analyst community as visionary in performance.management. Particularly when it comes to advanced analytical approaches, strategy management and cost/profitability optimization.

Reference:

Pawan S Budhwar, Arup Varma, Angelo S DeNisi (2008). Performance Management System: A Global Perspective.