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Across the globe, many governments and corporations are seeking cleaner and greener alternatives. It is becoming clear that sustainability should be an integral part of any organization’s strategic plan. Samirkumar Pathak, head of sustainability and ESG for Almarai, explains why this is the case and how this can be achieved.
Sustainability involves balancing economic, environmental, and social factors to ensure that the organization’s actions do not harm the planet, people, or future generations. Angela Hultberg, Kearney’s Global Sustainability Director, explains why sustainability must not be considered an afterthought and should be embedded in all organizational decisions.
The monitoring, evaluation, accountability, and learning (MEAL) concept should be incorporated into the future corporate performance management system, according to Dr. Loai Fathi Naser, an Assistant Professor in Management at Israa University. He adds that MEAL must be implemented and promoted throughout the formal structure and culture of an organization. In this article, Dr. Naser further discussed how organizations can prepare for managing performance in the future and how to use KPIs as navigational instruments.
2021 is now over. Organizations have faced many challenges throughout the year that affected its operations. The key trends in organizational performance management that emerged in 2020 and seem to continue in 2022 are digital transformation, artificial intelligence capabilities, polishing skills of remote working, and emphasis on wellness and mental health.
Which of the existing trends, topics, or aspects within Performance Management have lost their relevance and/or importance, from your point of view?
I think that polishing skills for remote work lost its importance due to the gradual shift to the normal situation after the COVID-19 pandemic has ceased.
What does the corporate performance management system of the future look like?
According to the Top 3 Enterprise Performance Management Methods by profit.co., contemporary management processes are moving towards customization, flexibility, and agility. These are some of the key changes considered essential for any progressive performance management system. To adhere to agility and flexibility, the performance system should apply and promote the MEAL concept within the organization’s formal structure and culture. Organizations should focus on team performance vs. individual performance, clearly define KPIs and criteria for compensation, and integrate digital tools and technology deployment in the performance appraisal process.
What will be the major challenges in managing performance in the future and how should organizations prepare for them?
One of the major challenges in managing performance in the future is the lack of chances for managers to check in on an employee’s performance and keep them aligned because of neglecting consistent communication and the opportunity of having informal communication between the manager and employee. Designing key performance indicators (KPIs) for performance management would help organizations attract and retain a good caliber of staff through financial and non-financial means. Staff should have professional development plans that are regularly reviewed and updated.
How is technology impacting the way organizations conduct strategic planning and manage performance? Any specific technology tools you would like to mention?
Organizations should integrate digital performance tools into their team’s workflow to see positive results from the process. Making performance feedback a natural part of day-to-day work makes coaching employees and managers alike easier. One software that is available in the market is Synergita. It measures and monitors employee performance in real-time. Synergita also tracks the progress of employees. It helps organizations strengthen their HR tech stack to build high-performing teams.
How is sustainability impacting the way organizations conduct strategic planning and manage performance? Any specific sustainability aspects you would like to mention?
The practice of corporate sustainability leads to sustainability of performance and increases the efficiency of strategies, leading to greater performance. Among sustainability dimensions, it is important to note that the social sustainability aspect has the highest impact, followed by the economic and environmental aspects.
The COVID-19 pandemic has caused disruptions in our day-to-day lives, social relations, economies, and business dynamics. Given the impact of the crisis, what do you think are the specific changes in the way strategic planning and performance management is being conducted post-COVID?
Performance management under COVID-19 needs planning for uncertainty and developing a range of scenarios. It needs a clear view of a starting position in the wake of the pandemic. A social feedback system provides the employee with a larger amount of feedback (often 50 or more instances over the course of a year) from peers and others. This reduces the emphasis on receiving feedback from the employee’s manager alone. Recalibrating KPIs is essential to ensuring that remote work actually works.
What should be improved in the use of strategy and performance management tools to make an organization even more resilient to future crises?
Well-designed KPIs work as vital navigational instruments. They give a picture of the current level of the organization’s performance and find out whether the business has achieved its goals and objectives. KPIs work as standards for future performance during crises.
While navigating through these challenging times, what would you consider a best practice in Performance Management?
Honest performance appraisals for employees need leadership skill rating. The result of an employee’s good performance could be increased production, customer growth, and an enjoyable work environment. However, poor employee performance may result in just the opposite. One of the tools used to gauge employee performance throughout the year is a performance appraisal.
How does benchmarking support the improvement of performance management and target-setting systems?
Organizations engage in benchmarking to achieve the industry’s best practices and to keep abreast with competitors. Benchmarking serves as a performance management strategy by setting performance standards. It identifies performance gaps by comparing actual with target performance.
Dr. Loai Fathi Naser has over 17 years of experience in program management and organizational development. As an assistant professor, he has more than 12 years of experience in academic teaching and training in Business and Management courses such as Corporate Governance, Entrepreneurship, Microfinance, Institutional Development, Strategic Planning, Project Management, Human Resource Management, Business Communication, and Total Quality Management.
As an organizational development consultant and trainer, he leads teams in organizing program evaluation, organizational capacity assessment, financial transparency and compliance, and conducting capacity-building training and coaching.
Editor’s Note: This interview originally appeared in the 22nd edition of the Performance Magazine – Printed Edition.
Image source: Alice Donovan Rouse | Unsplash
Having a clear vision for your organization and being aware of its external environment to prevent threats and capture opportunities instead. This is how strategic thinking works for Fadi Al-Jafari, a Senior Management Consultant, Leader of Data Analysis and Visualization Center, and Project Manager at The KPI Institute. In this interview, he explains what makes a strategy and performance manager successful and how organizations can make sound decisions on the spot.
What were the key trends in Organizational Performance Management in 2021, from your point of view?
Organizations are working on digitalizing performance management systems (PMS) and ensuring that individuals have the right digital tools to perform their duties as they work remotely nowadays.
Which of the existing trends, topics, or aspects within Performance Management have lost their relevance and/or importance from your point of view?
Regarding the vast changes in external environments, organizations are shifting their strategy planning and execution practices from the traditional approach to the agile approach to make sure they capture the external opportunities and avoid the external threats in the early stages. This will help them adapt in a fast manner to those changes.
What does the corporate performance management system of the future look like?
Digitalized PMS that connects and measures individuals, teams, and organizational work in a timely manner to help top management make decisions on the spot
What will be the major challenges in managing performance in the future, and how should organizations prepare for them?
The major challenges would be how to measure the individual’s performance right and without any biases, use the data to predict future the individual’s performance, and benefit from the data they have to improve the individual’s performance. One solution is to use digital PMS that collects data regularly and measures individual performance based on the tasks they work on and then use data analytics tools to draw conclusions and predictions based on the analysis.
How is technology impacting how organizations conduct strategic planning and manage performance? Any specific technology tools you would like to mention?
Technology is a key element in supporting strategy. Technology supports environmental scanning tasks as organizations can nowadays collect and analyze data on a timely basis. They can analyze their internal environment as well as their external environment. In addition, technology also helps in predicting trends.
Technology helps organizations gather real-time data and big data. Having such big real-time data helps organizations make sound decisions based on facts and figures. Using tools like Tableau and Power BI helps an organization create real-time dashboards that show the trends and changes in data. In addition, organizations can use those tools to predict outcomes to support proactive planning.
How does sustainability impact how organizations conduct strategic planning and manage performance? Any specific sustainability aspects you would like to mention?
Sustainability requires organizational objectives and strategy to consider the social welfare of the employees and communities.
The COVID-19 pandemic has caused disruptions in our day-to-day lives, social relations, economies, and business dynamics. Given the impact of the crisis, what do you think are the specific changes in the way strategic planning and performance management is being conducted post COVID?
Organizations should focus more on creating an intelligence unit that monitors the minor and major changes in the external environment on a continuous basis. This would help them identify risks or new trends that could affect the environment. This would also help organizations become more proactive and make decisions about needed actions once they have identified the risks.
What should be improved in using strategy and performance management tools to make an organization even more resilient to future crises?
Organizations should shift their mindsets from the usual strategic management approach to a more agile approach in planning and execution. This will help organizations adapt to changes faster based on external circumstances.
While navigating through these challenging times, what would you consider a best practice in Performance Management?
To start with an organizational architecture framework of the PMS, ensure that cascading and alignments are conducted properly. This also enables organizations to develop a governance framework, processes, and procedures to efficiently run the system and avoid internal silos.
How does benchmarking support the improvement of performance management and target-setting systems?
Benchmarking is a process that involves identifying and learning from the best performers in the organization. It helps develop new and challenging targets and measures that will support organizational growth.
Which organizations would you recommend to be observed due to their approach to managing performance and its subsequent results? Why?
I would say Saudi Vision 2030 is a good example to be studied and followed at the national level. Organizations can follow this example and learn how the vision realization offices in Saudi handle such vision and ensure alignments between different entities. The results that Saudi achieves are astonishing, and it can be a great case study.
What aspects of Performance Management should be explored more through research, given their importance in practice?
Alignment approach between business units, departments, and divisions. This approach is requested a lot by clients to know how to handle such alignments internally.
What are the key competencies of a successful business leader ( C-level Executive)?
The business leader must show strategic thinking in terms of having a clear vision for the organization and having a clear goal of what they would like to reach in the future. The business leader must employ analytical and critical thinking to analyze the external environment, capture opportunities, and avoid external threats that could affect the organization.
What key competencies would make a Strategy and Performance Manager succeed nowadays?
An important one is strategic thinking — to be able to analyze different situations that the organization may face and to have a proactive personality that would allow them to capture changes in the market before they arise. It is crucial to identify the opportunities, capture them before the competitors do, and determine any threats to prepare the organization to deal with them.
What processes and tools do you look at when differentiating a successful performance management system from a superficial one?
To have a successful PMS, organizations must have a clear design and architecture of the PMS itself within the organization, and it must have top management support. Moving forward, the strategy office should develop this system internally and develop needed tools and needed processes that include but are not limited to: Strategic Planning Tools, Processes and Timeline; KPI Selection Tools and Processes, Departmental Cascading and Alignment Tools and Processes; Employee Cascading Tools and Processes, and Performance Culture Tools and Processes. In this manner, the organization will perform standardized tools and processes that support the internal alignment between all internal stakeholders. This will ensure clear steps for analyzing internal and external environments, standardized KPIs following best practices, and more aligned objectives on different levels.
In addition, it’s also important for the top management and strategy team to communicate the strategic objectives, values, and organizational identity to all employees. Unfortunately, some organizations keep those elements hidden from the employees, and this leads to misalignment internally, losing organizational direction, huge gaps, and silos between departments and negatively impacting employee engagement. Missing one of the abovementioned points would weaken the PMS within the organization.
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Background
As a Management Consultant, Fadi has been involved in multiple projects related to designing, implementing, and auditing Performance Management Systems. This includes formulating objectives, selecting KPIs, documenting KPIs, and selecting initiatives on both the strategic and functional levels as well as developing balanced scorecards and dashboards to fit organizational needs.
As a Facilitator, Fadi has been delivering Certified Strategy Business Planning Professional, Certified KPI Professional and Practitioner, Certified Performance Management Professional, Certified Employee Performance Management Professional, Certified BSC Professional, Certified Data Analysis Professional and Certified Data Visualization Professional, in both Arabic and English languages.
When it comes to finance and business management, few people within the TKI family can boast a more impressive path to professionalism than our Head of Research, Marcela Presecan.
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