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Become a HR Strategic Performance Management Expert

"Strategic performance management is defined as performance measurement, monitoring, and improvement methodology that help achieve overall organizational objectives."

Strategic performance management is defined as the methodology to improve performance measurement, monitoring, and improvement to achieve overall organizational objectives.

Strategic performance management is often practiced using the balanced scorecard framework, which matches employee performance to financial success, customer satisfaction, internal process efficiency, and organizational capacity optimization.

Mercer's recent survey of 1,154 HR leaders found that only 2% of companies currently achieve "exceptional value" from their performance management systems. This could be due to an inordinate focus on individual employee goals without adequate alignment with organizational targets. Mercer found that 83% of companies follow individual goal setting, but these are tied to business unit goals in 56% of cases.

This is where strategic performance management comes in. It places a keen focus on organizational strategy and how it is being fulfilled through employee performance and improvements in workforce capabilities. By adopting strategic performance management, you can bridge the gap between on-ground performance and high-level business transformation more effectively.

You could look at many variants of performance management, such as formal/annual performance management, continuous performance management, and agile performance management. Strategic performance management is among the most tried and tested tactic that's been popular among large organizations such as Unilever and P&G.

To clearly understand the concept of strategic performance management, you need to take a closer look at the balanced scorecard approach.

Once you are clear on your organizational objectives and how they relate to individual talent/output, you need a strategic performance management system that can align these elements and help to orchestrate them smoothly. This system will comprise:

● A goal-setting and identification tool: Allows C-level executives and business leaders to study trends, perform forecasting, and set tangible goals for the company

● Outcome-oriented system: Monitors organizational performance and growth in line with the goals that are already set; can cover the four elements of the balanced scorecard

● Workforce segmentation: Segments employees into groups based on performance parameters for easy monitoring and alignment

● Employee-level performance management: Tracks employee performance continuously with respect, empowers regular feedback, and supports check-ins

● Seamless integration: Enables integration of employee performance management systems and organizational KPI dashboards for alignment of data

● Effective communication: Provides an internal marketing, communication, and feedback mechanism to widely share C-level goals with the entire workforce, encouraging self-improvements

Equipped with these components, a strategic performance management system can accelerate individual improvements while constantly moving in tandem with the holistic organizational direction. For example, if a company is looking to venture into new areas, the workforce can quickly upscale to meet the requirements and unlock the business opportunity at hand.

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HR Performance Management System (PMS) Lecture Outline 1. Problems and Possible Solution in Performance Management 2. Performance Management in Practice 3. Model... [read more]

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Lecture Outline 1. What is 360o Feedback and How does it Work? 2. The roots of 360o Feedback Sources 3. Multi-Source Assessment 4. Why the 360o feedback slow adoption? 5.... [read more]

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Methods and Measuring Performance Management Lecture Outline 1, Flow Of Process PDCA Performance Management 2, What is Performance Appraisal Planning ? 3, Objectivity &... [read more]

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Lecture Outline 1. Detail of Performance Assessment (PA) 2. 10 Step in Developing A New PA System 3. Get Top Management Actively Involved 4. Establish the criteria... [read more]

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Managing KPI with Balanced Scorecard Lecture Outline 1. Performance Management Framework 2. Management Component 3. Performance Management Cycle 4. Managing Performance... [read more]

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Complete KPIs for All HR Functions (Microsoft Word) Detail KPI for : 1. Recruitment Function 2. Training and Development Function 3. Performance and Productivity... [read more]

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Sample & Template of KPI for HR Manager PPT Key Performance Indicators (KPIs) are the critical (key) indicators of progress toward an intended result. KPIs... [read more]

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Guidelines & Templates of HR Scorecard Based on BSC Contents 1. The HR Strategy Map 2. Key Components of the Human Resource Scorecard 3. KPI Based on Balanced... [read more]

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SOP Employee Performance Appraisal (Examples & Templates) Contents : 1. Policy Guide of Performance Appraisal 2. Flow chart of SOP Employee Performance... [read more]

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UJ Consulting

Untung Juanto ST. , MM. Founder of UJ Consulting. He is professionally experienced business and management consultant in several local and multinational companies. [read more]

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