| Every company, regardless of its size, can benefit | | | | increasing its lifetime value of each customer or should |
| from creating a culture where attention and value is | | | | they first cut costs? |
| placed on the employee's individual contribution while | | | | Once the end goals are defined, the steps and |
| still maintaining a focus on the bottom line. That's what | | | | processes to get there need to be laid out. Each step |
| the best strategic performance management systems | | | | should be calibrated against measurable guideposts. |
| help companies do. | | | | This often involves a review of the entire organization, |
| Strategic performance management is a process | | | | each department, and even each individual's function |
| which guides an organization as it develops a clear | | | | within the company. Each area of the company that is |
| mission, sets goals to accomplish the mission, and | | | | involved in reaching the end goal needs to understand |
| defines clear, measurable steps in order to achieve | | | | its role, its responsibilities, and understand how it fits into |
| those goals. A strategic performance management | | | | the overall mission. Often, this analysis leads to |
| system is a powerful tool to help manage the process, | | | | realignment of people and responsibilities to better |
| measure the results, and allow the organization to | | | | achieve the desired result. |
| more quickly and easily identify those areas that are | | | | The strategic performance management process |
| not performing as needed. | | | | would then be better able to give each individual |
| Without a solid system in place, many companies try | | | | employee a clear vision of their role in the overall |
| to pursue too many loosely defined goals. They get | | | | mission and define measureable achievements. As this |
| off track, one part of the organization pursues one | | | | happens, employees begin to feel more involved and |
| goal, while another is after a slightly different objective. | | | | invested in their own, as well as the company's, |
| The employees feel conflicted because they often | | | | success. With regular, consistent feedback, they begin |
| don't see where they fit into the big picture. In the end, | | | | to see how their individual contribution affects the |
| the company never quite achieves what it set out to | | | | overall objectives of the company. In addition, by |
| do and the employees are frustrated. | | | | setting out clear, measurable performance goals for |
| Companies which implement a strategic performance | | | | each individual and department, it becomes easier to |
| management system do things a little differently. They | | | | identify where the weak links are and address them. |
| take the time and effort to set a clear strategy. The | | | | Once an entire organization becomes involved and |
| first step in developing an organization's strategy is to | | | | focused on a set of clear goals, the culture of the |
| define and then prioritize the end goals for the entire | | | | organization inevitably begins to change. The |
| company. Is it most important to achieve a better | | | | organization begins to function more as a cohesive |
| return on investment or does the organization need | | | | team, with each individual player aware of his or her |
| more customers? Should the organization focus on | | | | importance to the overall mission. |