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The 5 Laws about the Meaning of Performance Management

Growing Your Business | Global Strategic Management Solutions

Strategic-Performance-ManagementAlthough the subject might appear to be a bit complex, the meaning of performance management can be broken down into 5 basic steps or laws. These define each essential aspect of this process. A successful management program can go a long way towards enhancing the profitability and innovation of a company among other things. Learning these 5 laws or steps, however, is ultimately essential for the long-term survival of any commercial endeavor and will determine whether it grows or fails.

Goal setting is perhaps the most important aspect that company owners should learn. This is the way in which businesses are able to determine the directions in which they will go. It also helps to establish the manner in which they will get there as well as how long their journeys will take. A goal is essentially a desired end and is not measurable. Thus, these are points that commercial operations can always improve upon, such as providing good customer service, quality products and affordable pricing. The measurement of these things is subjective and once a business reaches a certain measure of success it will still have the ability to obtain new heights. By setting these, however, businesses are able to establish the foundations of who they will be and how they want the public to receive them.

One very necessary part of goal setting is the writing of objectives. These are measurable and they are the essential steps by which companies or corporations can meet their goals. If one goal is to become a provider of optimal customer services, than an objective for reaching this point would be to set up a reliable phone-in system that clients can access whenever they need assistance. To reach each end, however, there can be many objectives. For example, good customer services will require physical and web-based components as well, along with solid plans for helping to resolve consumer issues in the most satisfactory way. It is additionally important that all major players within the corporation are in agreement with both objectives and goals and that there are reasonable and feasible time frames in place for each. Each of these things is vital for understanding what performance truly means for the business and how it can ultimately be best managed.

Managers themselves must then determine why the management process is so vital. This entails defining the unavoidable avenues of waste when procedures are ill-governed and ill-maintained. Each power person must understand why this is so critical to the success of their endeavors. Waste, whether in time, efforts or products will always offset profits. Those groups that are able to deliver quality goods or services with minimal waste will benefit the most in their industries by ensuring that more monies are retained as profits rather than squandered. More importantly, if goods or services are to be high in quality, the production strategy must be carefully devised and maintained. Employees should also have a keen understanding of why this effort is as critical as they too must know that their financial survival is dependent upon the measure of efficiency that is applied to work strategies and procedures.

Next, managers must be assured of their right to do their jobs if they are to accomplish these things effectively and in a timely fashion. Thus, there must be incentives in place and potential repercussions for not following what is established as company protocol or for not adhering to managerial directives. If there is no authority, management cannot be effective. For this reason, the chain of command must be firmly established and all employees must know where they fit in, what their responsibilities are and the best steps to take if expectations are to be met. When each person knows his or her company role, the ability to fulfill objectives and to attain goals is real.

The supply chain should be analyzed as well. This is the chain through which all of the production and other supplies are obtained. This has certainly become far more convoluted in the modern age, now that much of the related aspects of this have been outsourced. Ultimately, it is through this chain that managers are supplied with the techniques and tools that are required for ensuring that everyone and everything remains on-track. If people are not properly equipped to do their job, performance will suffer. A strong supply chain eliminates many of the common excuses for falling behind schedule is producing substandard work.

Some of the most vital tools for managers include tools for tracking progress and employee investments of time. With these tools these professionals will be better able to assess where time is being wasted and areas where more effort should be applied. If tracking tools are not in place, it becomes impossible to gauge how well everyone is doing, just as it becomes impossible to gauge which processes require improvement.

It is next important to ensure that management itself is the top priority of all those in managerial positions. Managers should not be stepping in to perform the duties of those that they manage. They should instead be investing their labors into ensuring that all parties are effectively fulfilling their tasks. If each person is completing his or her own assigned duties it will be far easier to remain on schedule.

In many ways, the meaning of performance management is quite cyclic, when the proper tracking tools are in place. Companies set their goals and objectives according to an agreed standard for their operations. They then encourage all parties to get involved into ensuring that the desired ends are reached by empowering and equipping their managers and providing all other employees with all of the information and resources that are necessary for following directives. Tracking resources are additionally put in place to ensure that all parties remain informed of the efficacy of each effort that is made. As objectives are met and goals are reached, businesses set higher goals and create new objective for meeting them, making it necessary to reassess the tools and techniques for management that are in place. When this cyclic process is performed with great diligence, companies can increase their profitability in a continual fashion.