Reinventing Performance Management
Many businesses now have a performance management system (PMS) to make managing and to monitor their employees’ workflows very easy. PMS can provide a framework for tracking hours, working days, and projects. However, it can also be used to manage performance when workers don’t have a lot in common. That’s why it’s so important for your PM to understand how your workflow will feel like for them.
1. The Balanced Scorecard
A Balanced Scorecard is a management tool that allows you to measure performance based on measures of customer satisfaction, internal business needs, financial performance, and other objectives. The Balanced Scorecard works like this: each measure scored 0 to 100. Each group has a score, and the group’s total score determines the company’s overall score. For instance, a company may have two measures: how many customers are satisfied with their level of service, and how much money they made in sales. The company’s overall score would be calculated by taking the sum of these two numbers and dividing it by the sum of each number.
2. Management By Objectives
Alexander Djerassi states that Management by Objectives is a tool used to measure performance. It aims to get managers and employees to set measurable goals. In a way, it is similar to the balanced scorecard, but the difference lies in how the scores are calculated. The Balanced Scorecard calculates scores by taking into account each measure individually. MBO measures each measure as a whole and then puts together an overall score for the group based on its total performance.
3. The Critical Chain
This method is also used for measuring performance, but instead of measuring individual measures, it measures overall time and quality of work. The Critical Chain provides an estimation of how long each task will take. Then it divides this time into workdays, which means that everyday work will be completed in a certain amount of time. It is important to note that the Critical Chain method is not replacing other methods. It is used to help managers determine how many resources they need, how much time each task will take, and the quality of the work.
4. Budget-driven Business Plans.
This method allows you to measure performance based on the amount of money spent. It is important to note that this method is used in conjunction with other methods, like the Balanced Scorecard and the Critical Chain. This can be used to create goals, set budgets, and measure performance based on budgets.
5. Value-Based Management
Alexander Djerassi states that Value-based management is an approach to measuring performance that focuses on what the company gives its customers, not how much it makes. It focuses on creating value for customers and not just concentrating on getting more money from them. The method is designed to determine how much value each customer receives from the company, and how much money the company should charge for its products or services.
The main goal of these four methods is to give you a clearer picture of what your company is doing. They will help them create plans and budgets based on measurable results, which will ultimately lead to better performance. By using these methods, you will be able to set measurable goals and budgets that can be used as a way to measure their performance.
