How can we make sure our performance management system helps us to execute our strategy?
If you believe that you have the right business strategy and have communicated it well - but is has failed to deliver results, you are not alone. Hay Group frequently sees a gap between how performance is managed and its impact on business goals.
In such situations, effective execution can be elusive. If strategy is to be delivered, performance management must become strategic. Yet all too frequently, performance management systems do not reward the real things that matter to organizations. They often fail to keep up with changes in the marketplace or the wider global environment. Sometimes they reward local or team targets, without considering the impact on the wider enterprise. And many are too complicated, too technical or not transparent enough – or they neglect the importance of 'soft' issues, like the impact of organizational culture on success.
Strategic performance management
Performance management fails as a management tool if it is not holistic - considering how rewards in one place affect results or motivation in another.
Truly strategic performance management makes the connection between strategy and culture, so that employees are motivated in the right direction, and thus, have maximum impact on business performance.
A model for today
The Hay Group approach to performance management is based on the belief that existing models are not working effectively. Our new model addresses the following key areas:
- aligned organizational goals
- organizational culture
- equipped leaders
- differentiated rewards.
We can help you deliver superior business results by creating a strategic performance model that is unique to your organization and that addresses both 'hard' and 'soft' organizational issues.
Read more about how the 'hard' and 'soft' connect to create high-performing organizations - click here to download our executive summary