Analyzing the Stages of Strategic Performance Management Cycle
Growing Your Business | Global Strategic Management Solutions
Each and every company ought to place the individual contribution of its employees ahead of anything else. This is because employees are always regarded as the face of the company. However, in order to recognize the contribution of each and every employee, the company ought to employ the use strategic performance management systems.
Most companies use these systems to monitor the progress of achieving its set goals and objectives. However, progress is measured depending on how the company is performing towards achieving its strategic goals. This system can be employed at any level of the company provided there are set objectives and goals.
In order to implement this plan, there is always a four stage cycle that enables managers to use this method to be able to effectively measure the progress of the organization. Planning is the first stage that is used when developing this system. This is where managers ought to come up with an overall strategic plan for the company.
Also, this is the point where the preferred goals and outcomes are clearly outlined, as well the methods that are to be used in order to achieve these goals. The do stage cycle is the other phase that is employed in the implementation of this plan. The most important and notable component associated with this stage is constant communication.
Here, managers ought to clearly outline the set goals and objectives to their employees and what is required of them. Other than verbal communication, managers can also provide employees with a set of written procedures that clearly outlines the new ways of doing business. The third stage is review which comes along after the plan has being implemented.
This is the stage where the definite results are measured against the expected results. It is advisable for managers to review plans more often in an annual, quarterly or monthly basis. Revising is the last stage of implementing this system and this involves revising the review of the plan in the event that the organization does not achieve its set goals and objectives. Revising of plans is a very normal practice as it enables the company to adapt the plan and make necessary improvements.
Nonetheless, there are challenges that come along when putting this system into practical use. One of the most notable challenges associated with implementing this plan is been able merge the performance expectations with corporate goals. In order to achieve the expected goals and objectives, this will greatly depend on the performance of employees.
In order to be able to achieve these set goals and objectives, the achievements of individual employees ought to align with the objectives of the organization. Measuring performance is another challenge that is experienced by managers when it comes to the implementation of the strategic performance management system. In most cases, the difficulty that comes along with assessing achievements is being able to identify the indicators to use that will enable a manager to directly measure results. Furthermore, making employees to understand the use of the indicators is another daunting task associated with the implementation of this system.