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.
A Balanced Scorecard helps a company innovate and elevate itself to new heights of performance, by assisting its leaders in making key decisions that are in line with the company’s objectives.
smartKPIs.com Performance Architect update 29/2010
One of the surprise articles in the July-August 2010 edition of the Harvard Business Review (HBR) is ‘The Execution Trap‘, written by Roger L. Martin, Dean of the Rotman School of Management at the University of Toronto and Professor of Strategic Management at the same school. Its publication comes as a surprise as traditionally, HBR has been favoring articles promoting strategy execution and the separation between formulation and execution. The support of the publication in promoting Kaplan & Norton’s ideas over the last 15 years was an important contributor to the ascent of strategy execution as a “buzzword”.
The article clearly states the author’s position right from the tagline: “Drawing a line between strategy and execution almost guarantees failure”. It reviews the recent history of the separation idea, mentioning names of proponents such as Jamie Dimon (now CEO of JPMorgan Chase) and Larry Bossidy (former AlliedSignal CEO). The phrase that encapsulates best some of the challenges in today’s management thinking is: “…[the] doctrine…is as flawed as it is popular. That popularity discourages us from questioning the principle’s validity.”
The Best-Performing CEOs in the World represents the first global ranking of the CEOs based on company performance during their tenure. Developed by INSEAD Professors Morten Hansen, Herminia Ibarra and Urs Peyer, the ranking is based on a global data set regarding 2,000 CEOs of 48 nationalities and from companies in 33 countries (INSEAD, 2010). The CEOs were chosen from the S&P Global 1200 and S&P BRIC 40 lists since 1997.