Business Performance Management is a technique developed with the aim of ensuring that the goals of an institution, company or sector are achieved efficiently. It values meritocracy and seeks to achieve a fair distribution of profits, based on the individual performance or a team.
Historical context
The original term, Corporate Performance Management (CPM) was coined by Gartner Group in the early 1990s. Several experts in the business field, such as Howard Dresdner, developed this methodology, whose main function is to evaluate solutions applied to the day-to-day running of companies, regardless of their segment.
How to implement Performance Management?
To implement Performance Management In a company, it is essential to create a solid base of information in order to align several important points and develop the strategy based on them. We've listed some key points below to make it easier to understand.
In this case, we're considering remuneration based on an employee's individual production in a specific project, just to give an example:
General objective: it is essential that employees are aware of the project's overall objective, deadlines and other information. They will be evaluated and paid for their specific task, but awareness of the whole helps them understand and execute it.
Specific task and deadline: set a specific task for the employee. It's important that they know their role in the project, their specific deadline and what is expected of them.
Goals and parameters: In order to optimize the individual's evaluation, it is very important that they are aware of the evaluation goals and parameters. These should be determined before the project even begins and can vary according to each person's responsibilities.
Documentation: a written word is a written word. Document and demand that everything is properly documented, whether on the company intranet or by e-mail. This is essential to ensure that the information circulating is correct and to avoid possible errors arising from miscommunication.
See also: Competency Matrix. What is it and what is it for?
Support
The employee is aware of the general objectives of the project and its specific targets and deadlines. In any case, it is essential to accompany and support them, offering information and support whenever necessary. This ensures perfect execution, saves time and money and contributes to professional development and the organizational climate.
What are the benefits for employees?
It is safe to say that Performance Management represents a meritocratic model extremely beneficial for employees. This is because they have a clear idea of their roles, goals, deadlines and general and specific objectives, which avoids high expectations and professional frustration.
What's more, with performance-based pay, employees are rewarded for their personal efforts, encouraging the search for improvement and training. It's meritocracy working for results.
Read also: Meritocracy - how to improve individual performance?
What are the benefits for the company?
In addition to the gains in production, the company also profits from the organization and clarity of information that the adoption of the Performance Management offers. The documentation generated makes it possible to monitor every step of a project precisely.
Another important point is the real picture of employees generated by the results. This is thanks to results-based remuneration staff, whether they are outsourced or employees. This makes it possible to plan upcoming projects with greater precision regarding the available workforce.
Performance Management has other benefits and requires a lot of work and attention from managers. Visit our blog and find out more! And if you have any questions, leave a comment and we'll get back to you as soon as possible.
