In this article, which is the first of T&L’s performance management series, we explore some of the reasons why organizations are struggling with implementing an effective performance measurement solution and offer some alternative approaches to help revitalize your organization’s performance management solution.

In my opinion, one of the reasons that organizations are struggling with performance measurement is because there are too many similar solutions that do not address the fundamental performance management issues within organizations. For example, if you search on Google on “Performance Measurement Solutions”, 50% of the 1.5 million responses are solutions related to strategic alignment, which is not consistent with what we heard from our clients. The challenges our clients faced with respect to performance management are in developing meaningful, accurate, and easy to use performance measures. Therefore, the “one size fit all” solutions (e.g. strategic alignment) might not be appropriate for every organization. I believe that it is important when developing a performance management solution first find out the root of the issues before looking for a solution. Some of the underlying issues could be what information employee and managers feel is important to do their job, why it is important, how this information would help them do their job better and why the information they currently have available is not adequate.

Besides identifying the root of the issues, implementation of an effective performance management is the key. In cases where organizations are not able to effectively implement performance management tools it is because people just do not find the information useful. In fact I have observed on many occasions management teams spending more time debating the merit of information about their scorecards than actually using the scorecard information to make decisions.

I don’t believe sophisticated strategic management frameworks and systems are necessarily the solution that will help these organizations move forward. I would suggest first before prescribing a solution to conduct an organizational assessment to determine if there is miss-alignment between strategic objectives and operational activities. In doing so, find out why the current system is failing and what people need to better contribute to the organization’s objectives. Then not only will you be able to determine if there are issues with strategic alignment but you will also find out why. This information will assist you in developing an approach to revitalize your organization’s performance management solutions.

Don’t look for the same old solutions if your organization is struggling with performance measurement, take a step back and find out why?

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Kyle Toppazzini is the president of Toppazzini and Lee Consulting and has developed and perfected T&L’s value performance management accelerator solution that has enabled his clients to achieve noticeable results.

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This entry was posted on Wednesday, January 23rd, 2008 at 9:11 pm and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.