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Process Performance Management

Process Performance Management

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Published by Guardiola82
Process performance management
Process performance management

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Published by: Guardiola82 on Sep 10, 2010
Copyright:Attribution Non-commercial


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Process performance management
If the universal goal is a high performance, why is performance management so difficult.In this article I will explore the influence of two drivers, FEAR and GREED, and the waythey have corrupted the idea of performance management.When Gordon Gecko said "Greed, for lack of a better word, is good." in the hit movie,Wall Street, it was the mantra for the Wall Street fat cats who led us into the global creditcrisis through their pursuit of obscene, often illegal, profits and bonuses. Their behaviour since being rescued by the taxpayer shows that they have not learned to modify their  pursuit of wealth at any cost.Everyone who has been subjected to micromanagement, as a means of making their lifeat work so intolerable that they are induced to resign, knows how the process demeansand then destroys their spirit. Corporate bullying masquerades as performancemanagement, and the bullies continue to be promoted to positions of greater power despite the annual dreaded "performance review" that never seems to touch them. TheHR profession seems to have legitimized this practice as a way of achieving staff reductions, and practitioners regularly find themselves forced to defend personalgrievances from victimized employees.Is it any wonder that performance management has acquired a bad name, or that so manysenior managers avoid the term because it has acquired such nasty connotations amongthe managed.
Why is it so?
 I could well ask "why do so many managers mismanage the process", deliberately, or through misunderstanding.I suggest it is due to a misinterpretation of the phrase "knowledge is power". If you believe that information should be hidden from your people in case they get to know toomuch, you risk becoming a black hole, where everything gets sucked in and nothing isgiven out in return.Are these managers corrupted by a lust for power. Do they hide information fromsuperiors in case their errors are exposed; do they hide performance information fromsubordinates so they can use it as a weapon when they feel threatened? Are they simplyresponding to the cultural norm?Whatever your answer, as a CEO or business owner, you have a deep-seated problem.The organizational quandary is that performance must be measured and managed for anorganization to prosper. After all, the finest strategy is nothing until it is implemented andmanaged.
Why have KPIs become the problem, not the solution?
 I believe this occurred by a misinterpretation of the term Key Performance Indicator.KPIs have become confused with the bad old performance management process, simply because they share the word performance.Performance management uses achievement of personal objectives as the focus of the process. The hapless employee is measured against the demanded, or sometimes agreed,target. Little wonder that they feel like the goat tethered to the stake, waiting for theinevitable fate, as they are told that they have not achieved their KPIs.Achieved or Not Achieved? Bonus or No Bonus? Pay rise or No Pay Rise? Promotion or Demotion?The problem is that an individual cannot have a KPI. A person can have an objective, butnever a KPI.
A KPI belongs to a function; not to a person.
A KPI evaluates functional performance,contribution to the organizations performance and it belongs to the manager and the team.The manager is accountable and the team is responsible.As soon as you accept that a person can never have a functional KPI you transform your understanding of the purpose of a KPI Model.
The real key to resolving the problem of fear and greed.
 Experience with high performing organizations around the world has enabled a robust process to be developed for gaining acceptance of KPI models and, implicitly, adoptionof sound performance management by the whole organization.The secret is to tap into the deep knowledge of the people doing the work. One simplequestion serves this purpose."How do you know if you have had a good day?"Ask this question in a workshop with all managers and supervisors present, and they willgive you the KPIs for their function. List them and use them as a point of reference. Now you have a base for constructing your KPI model, and it is simply a process of teasing apart, as a group, the sequence of functions that the organization must perform tosatisfy its customers.Yes; there are many iterations of the modeling process before you get it right, and it mayhelp to have an experienced facilitator, but there is no high tech gear needed. This is ahigh touch process of working together with pencils and lots of large sheets of paper.Along the way, managers learn what staff know about their work, and staff learn how adecision at some point in their process affects the overall business performance. Suddenly

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