Tools used to help aid in measurement

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Embed Size px. Start on. Show related SlideShares at end. It essentially involves measuring, reporting and managing progress in order to improve performance, both at an individual level, and at a corporate level.

There are many, many performance management tools designed to make the process easier and more effective. Here I look at some of the most common tools. KPIs and metrics provide a way to measure how well companies, business units, projects or individuals are performing in relation to their strategic goals and objectives.

But the primary value of KPIs is not in measurement per se, but in enabling rich data-driven performance conversations and better decision making. Measuring everything that moves provides little more than an illusion that performance is being managed. Alongside KPIs, performance appraisals are probably the most commonly used performance management tool. When used properly, performance appraisals are incredibly powerful for aligning the goals of individuals with the strategic aims of the organisation.

To get the most out of this tool, however, employees must feel that the appraisal process is a regular, honest, fair and constructive two-way conversation. If not, appraisals can be a powerful de-motivator, leading to a decline in performance. Results are confidentially tallied and presented to the employee, usually by a manager. The insights from degree feedback are typically used in employee training and development. MBO is the process of defining specific objectives and then setting out how to achieve each individual objective.

The idea is that, as each objective is achieved, those within the organisation are aware of their achievements, which, in turn, boosts morale and motivation. MBO involves measuring individual performance and comparing it with standards that have been set. Without a doubt, one of the most popular and best-known management frameworks is the Balanced Scorecard BSC.

Voted one of the most influential business ideas ever presented in the Harvard Business Review, the BSC has been massively popular over the last 20 years. Reward and recognition programmes are therefore an important part of any thorough performance management system, creating a method for celebrating those who are high performers.

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