Five Challenges in implementing Performance Management
The performance management challenge in organisations has many dimensions in today’s business environment and creating focused initiatives to overcome these challenges is not a silver bullet approach. In many cases remuneration schemes are driving the performance system, which creates a number on long term consequences in organisational behaviour and culture. In other cases senior management are so focused on scorecard management to hold people accountable that the creation of the scorecard is not aligned with business focus areas, but rather a number of deliverable projects and tasks.
Challenge 1 Lack of Alignment
The first challenge is the lack of alignment due to various organisational processes being created in isolation. The link between Strategy development, budgeting and operational planning is developed by different groups of people with different frameworks being used. The performance management system lacks alignment between individual performance, departmental performance and organisational delivery and so all systems default back to financial measurements.
Challenge 2 Lack of Measurements
The second challenge happens at various levels of the organisation in that poor measures are developed, in many cases targets are set but no relevant measure is put in place. In other cases no data can be collected or is kept as evidence to track performance.
Challenge 3 Leadership and Management commitment
The Leadership and Management challenge has a huge impact on integrating and aligning a management system to deliver a comprehensive performance management system. The commitment and understanding of leadership and management of the requirements for achieving a workable performance system is critical to performance success.
Challenge 4 Managing of the performance system
Managing a performance system in an organisation requires a disciplined framework; it requires the organisation to work off one master plan broken down into relevant parts and areas of responsibility. The management responsibility at various levels needs to understand the contracting, measurement development and appraisal process very well and apply it consistently. Secondly management needs to appreciate that performance management is not an event but something that is managed daily but recorded and reported at certain times through reviews and appraisals.
Challenge 5 Managing poor performance
The management of poor performance is normally a reactive action, but in many cases it is delayed and therefore turns into a discussion that is difficult to make relevant. Another reason poor performance is not managed on time is the lack of valid measurements and the collection of required evidence and measurement data.
The solutions for these challenges are embedded in a comprehensive approach ensuring alignment or planning, management and performance systems