Performance management (PM) includes activities which ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product of service, as well as many other areas. PM is also known as a process by which organizations align their resources, systems and employees to strategic objectives and priorities.
PM is a strategic management approach for monitoring how a business is performing. It describes the methodologies, metrics, processes, systems and software which are used for monitoring and managing the business performance of an enterprise. Business Performance Management, and Strategic Performance Management, and Enterprise Performance Management and Corporate Performance Management are all variations of the terminology.
Benefits of Performance Management
Main benefits of CPM are:
- PM helps to maximize value creation consistently.
- PM helps to increase corporate transparency.
- PM facilitates communication with investors, analysts and with stakeholders.
- PM improves internal communication on strategy.
- PM facilitates the improvement of decision-making.
- PM helps to balance short-term, middle-term, and long-term trade-offs.
- PM encourages value-creating investments.
- PM improves the allocation of resources, streamlines planning and budgeting.
- PM helps to better deal with increased complexity and greater uncertainty and risk.
Performance Management Reference Documents
Auditing and Improving Business Performance
Employee Performance Guide
Benchmarking for World-class Performance
Malcolm Baldrige National Quality Award - MBNQA is a model for performance excellence
Plan for Performance Methodology
World Class Planning & Performance Management