Identifying Risks in Performance Management Processes PPT
This PPT slide, part of the 43-slide World Class Planning & Performance Management PowerPoint presentation, titled "What Can Go Wrong" outlines potential pitfalls in the areas of target-setting, performance measurement, and deviation management within an organization. Each section identifies specific problems that can arise and their implications, providing a structured approach to understanding risks in performance management.
In the first section, "Manage target-setting process," the slide highlights the risk of poor communication or management of the target-setting process. This can lead to several targets being established for the same business unit, which complicates accountability. It may also result in inadequate mobilization or incentivization of managers, ultimately leading to the creation of unfeasible targets that do not align with organizational capabilities.
The second section, "Measure performance," addresses issues related to data consistency. It notes that different accounting standards and data sources can create discrepancies, compounded by poor data entry practices. The implications here include wasted management time reconciling figures and making "blind" management decisions without a clear understanding of performance metrics. Continuous monitoring is absent, which can further exacerbate the situation.
The final section, "Manage deviations," points to the lack of rigorous consequence management as a significant issue. This absence can lead to ongoing problems that undermine overall performance, forcing the organization into a reactive mode rather than a proactive one.
Overall, this slide serves as a cautionary overview for executives, emphasizing the need for clear communication, consistent data practices, and effective consequence management to avoid these pitfalls. It encourages a more strategic approach to performance management that aligns targets with organizational goals.
This slide is part of the World Class Planning & Performance Management PowerPoint presentation.
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Strategic Planning Performance Management Performance Measurement
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