Terms of disengagement: too many rules in the office

Written by Borbala Pentek on November 11, 2020. Posted in Editorials

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).

Portfolio of Initiatives: Is it an important tool in performance management?

Written by Ramona Gligorea on October 27, 2020. Posted in Editorials, Organisational performance

In today’s business environment, strategic initiatives are becoming more and more complex. However, there are few organizations that have tools implemented to routinely monitor the initiatives’ performance.

What is the portfolio of initiatives? Briefly, it is a collection of projects the organization is implementing in order to fill an existing performance gap and achieve the desired state. The important part is to develop this tool based on the Balanced Scorecard of the organization. Thus, for each objective, initiatives have to be identified, to support their achievement.

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So different, and yet so alike. Performance management and Formula 1

Written by Adela Tudorache on October 5, 2020. Posted in Editorials

Can you imagine your organization as a Ferrari or a McLaren? Your management team as the pit crew and your sales force as the race team? A Formula 1 racing team model can be used as a metaphor for business, as they have many elements in common.

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Do we really need organizational performance management?

Written by Cristina Mihăiloaie on September 21, 2020. Posted in Editorials

Performance management, at least at the employee level, has received serious criticism from multinationals such as Microsoft, General Electric, Adobe, Goldman Sachs Group and Google, in the past 5 years. The traditional ranking system and KPI measurement used in the appraisal process provided little added value for the organization, for managers or for the individual. Practice has proved that a measurement system is merely a promise of improvement.