When considering the development of maturity in corporate management, one of the central focuses is certainly the link between Strategic management and individual performance. Incidentally, the necessary development of policies that advance the various corporate areas in parallel is advocated by the executive director of Stratec, within our series of articles on the subject and also as one of the foundations of the management maturity project that the company has been conducting.
Regarding the integration between strategy and individual performance, Guilherme Barbassa mentions that the implementation of Profit Sharing Programs (PPRs) is a corporate governance practice that aims to materialize this relationship between sectors; “The programs are created so that employees, managers, and executives are integrated into strategic planning and collaborate to achieve the set objectives. It's a way to align diverse stakeholders in the pursuit of strategy. This already makes clear the importance of investing in correlated actions of strategic planning and individual performance monitoring,” he explains.
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However, as Guilherme Barbassa rightly warns, for the individual effort invested to truly be a factor in encouraging better corporate performance, it is necessary to invest in the company's preparation. “Many organizations create performance programs that are not based on prior investment in strategic management and end up aiming in the wrong direction. It is necessary to know exactly what is being pursued,” he states.
Similarly, another concern that should guide the management of the relationship between strategy and individual performance is the balancing of the indicators used in the Profit Sharing Programs. “In addition to defining concrete indicators, calibrating the criteria and goals that are part of performance monitoring is another fundamental issue. When indicators are established, they become a vector of strength and direction for the company's productivity. If these criteria have not been duly certified and tested, the final model will be distorted and may even lead to undesirable results,” guarantees Guilherme Barbassa.
See also: How to correctly implement the meritocratic model
Therefore, if your company is investing in the development of individual performance programs, here are some tips from Stratec's CEO: a good Individual Performance Program (IPP) is born from investment in strategic maturity to effectively transform into a powerful tool for achieving corporate objectives. Furthermore, it is essential to invest in planning and testing the program to ensure it generates the expected results.
