Two surveys on Performance Management
Two surveys on Performance Management have concluded that effective Performance Management (PM) practices can enhance an organisation's performance. With just over 800 responses from 50 countries, the surveys, conducted in the second half of 2008 reveal unique insights as well as a number of commonalities.
A Canadian-centric global survey found that high performers, measured in terms of financial and operational performance, were 26% more likely to employ leading practices related to planning, analytics and performance management. The Canadian survey team was able to distil the data and information gathered through in-depth interviews to identify 7 key conclusions and 7 key performance management practices. Our European survey revealed that although most companies surveyed were satisfied with their current PM systems, perceived quality is often higher than the true value the systems deliver. The European survey team was also surprised that relatively few companies (only 30%) were using value-orientated KPIs, as opposed to traditional earnings related figures.
Both surveys confirmed that:
- Achieving strong alignment across all aspects of the PM framework is still a challenge for most organisations
- Performance Management is a board level issue – Boards of Directors are increasingly focused on organisational capabilities in this area as an indicator of effective management
- There is ample opportunity for improvement in most organisations as few exploit the full potential of PM
- Quality data and advanced PM technology, such as dashboards and BI and data mining tools, are key enablers of an effective PM program
- There are differences of satisfaction with PM systems between industries, and between public and private sector organisations.