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Good practice in performance management – integrated, systemic and cultural

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Oftentimes I am asked for advice on how to do performance management right. A very relevant question, as it is easier to make mistakes in deploying performance management practices rather than to get it right.

Clarifying terminology and understanding the context of each entity is important in designing good performance architecture that fits its environment and cultural dynamics.

Terms of disengagement: too many rules in the office

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In many cases when measuring organizational performance, companies tend to focus solely on the financial perspective, setting objectives such as “Achieve profit growth” (measuring it through $ Gross profit margin, $ Net cash flow, or similar indicators) or “Maintain financial discipline” (measuring it through  % Budget variance, # Berry ratio, or others).

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