I came across an excellent article by Forbes titled: "Why Performance Management Fails," which discusses the challenges of performance management. In this case, the focus is on Human Resources (HR) or individual performance management and associated Key Performance Indicators (KPIs). The points made, however, are the same that we at Cohesive Solutions make when helping our customers improve Operational Performance Management.
The key message is that objectives or goals for an organization should directly drive value from an organizational perspective, as opposed to individually. As we always say, “Performance management is a team endeavor, not an individual sport.” The article gives great examples of how organizations need to balance the optimization of performance, cost, and risk amongst interdependent objectives (note the example of the interdependent nature of materials management/spare parts and asset availability on page 2 of the article).
At Cohesive Solutions we provide our customers with a single solution that enables their teams to visualize and manage performance on an organizational level, aligning overall objectives with day to day activities in order to reduce risk, manage outcomes, and achieve operational excellence. With the right system and proper business processes in place, Performance Management will begin to transform your organization, versus being another failed project. We make this happen for our customers everyday, and can make it happen for you. Learn more about our Performance Management solution and services or contact us to speak with one of our trusted advisors about implementing a successful performance management strategy in your organization.
For more insights into performance management, operational excellence, and data quality, watch this recent event interview with George Lowry.