The days of passive strategic planning are over. Too often such plans are filed in binders instead of implemented to drive results. Companies are now turning to a more encompassing, active approach called performance management. Performance management provides focus for the future and delivers exceptional results…now.

Planning for the future

Performance management, like strategic planning, depends on a well-thought-out plan. In fact, both approaches are based on exploring the future. However, the planning processes and results are much different between the two.

Previously, strategic planning meant top management conducted lengthy discussions over several months to a year, and compiled their thoughts into a plan and into a set of binders. Performance management, on the other hand, creates a concise, thoughtful plan by generating valuable insight during just a few days of facilitation sessions. The process begins with the stakeholders’ answer to, “Why are we in business?” This answer drives the entire plan and remains the underlying reason for all performance management activities. 

Once the stakeholders’ objective is established, a project team of key personnel identifies the factors that are vital to achieving the objective, called the critical success factors.

Linking the plan to performance

With the critical success factors identified, it’s important to connect them to performance. Communication and accountability are the best ways to align an organization with the critical success factors. Performance indicators tied to employees’ daily activities will help foster ownership of the critical success factors. By nature, people will perform at or above expected performance levels if they feel a sense of ownership in what they are doing. Ownership builds pride and a desire for a clear understanding of management’s expectations. When armed with pride and information, employees develop motivation and a drive to succeed.

Translating strategy to daily activities

Key performance indicators provide the organization with direction, accountability, and motivation. However, oftentimes line workers, administrative staff, and other personnel have the lingering question, “How can my daily activities make an impact?” Action plans that are specifically linked to the critical success factors and key performance indicators provide the answer. Connecting employees’ daily activities and the key performance indicators helps implement an organization’s strategy, as well as foster a positive culture among employees.

Making connections means getting results

By linking action plans, key performance indicators, critical success factors, and the stakeholders’ ownership objective, the entire organization works toward a common, understood goal. This total connection provides a sense of structure while encouraging people to become truly engaged in their daily activities. When employees are engaged, they will continually seek ways to provide exceptional performance results.