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Performance Management A Guide to Consulting June 2022 : ; :; : Discussion Objectives ? Provide an overview of current thinking and trends ? Discuss what PM consulting is all about ? Review “what works and what doesn’t” ? Share Best Practices research ? Review some of the basic planning and project steps : ; :; : Group Discussion Answer the following questions: 1. What is performance management? Why do panies have this process? 2. Why doesn’t it work so well? What makes it so difficult? Performance Management ? Translates business vision and strategy in an actionable way by cascading goals throughout the anization ? Measures both what is done and how it is done ? Aligns ? Department goals with strategic business objectives ? Aligns individuals with the broader anizational/ team context ? Ensures the closest “l(fā)ine of sight” possible Source: Watson Wyatt Best Practices in Performance Management Performance Consulting 1. Total Organization ? Cascading and Alignment ? Stakeholder Metrics 2. Employee Review Process ? Engagement and Accountability ? Growth and Achievements Two dimensions: Performance Consulting Total Organization Performance ? Cascading and Alignment ? Stakeholder Metrics The Key Questions of Business Planning = Why does the pany exist? = Where is it going? ? Size ? Sales ? Markets ? Locations ? Products ? Competitive Challenges ? SBU Linkages = How will it get done? ? Values and Operating Principles ? Technology ? Resources = What must the pany be very good at doing? = How will progress and success be measured? ? Expectations of Stakeholders ? Company Performance Mission Vision of Future Strategic Organizational Goals Core Organizational Capabilities Balanced Scorecard Business Plans are Developed by the Business Units Resource Requirements Industry Latin America Asia (Europe) Objectives of the business unit Objectives of the region Bottomupapproach: Derivation of segment and corporate strategic plans and operating objectives from business unit goals. Topdownapproach: Derivation of objectives from corporate strategy Objectives of departments and individuals Strategy of the Corporation Objectives of the corporation ? People ? Facilities ? Technology ? Equipment and Machinery Components of a Balanced Scorecard (with sample metrics) FINANCIAL RESULTS CUSTOMER SATISFAC