When businesses get its performance management right, they become significant competitors. The simple principle of “what gets measured gets done” underpins effective performance management. In an ideal scenario, a company develops a feedback loop of metrics and targets that extends from its top-level strategic goals all the way down to the daily tasks of its frontline employees. Managers actively monitor those metrics and meet with their teams on a regular basis to discuss progress toward meeting the targets. Good performance is rewarded, while poor performance prompts action to address the issue.
Hence, building a resilient performance management system becomes key to managing an organisation. Here are three ways it can be done.