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Performance Management

december 2010
Organizational awareness

• Why performance management?

- There should be a clear vision of what is expected from
performance management
- Performance managements should be based upon the strategic
role of the company
• Commitment and attitude from top management
- Performance management is not about punishment but remedy
- Clear communication (communicate strategy up and down the
organization and link it to departmental and individual objectives)
- Mobilize a powerful team with enough commitment
• Alignment between strategy and organisation’s structure, processes,
people, and tools

december 2010
PwC 2
Framework

Choose a structural framework

- Balanced scorecard (Kaplan and Norton, 1992 and 1996a)
- EFQM
- Performance measurement matrix (Keegan, Eiler, and Jones ,1989)
- Performance prism (Neely, Adams, and Kennerly, 2002)

- Levers of control (Simons, 1995)

december 2010
PwC 3
Measurement
•Select the right performance indicators
- Involve employees in their development
- Ensure that measures are relevant to managers and employees in
performing day-to-day jobs
- Should be easy to understand by those being evaluated
- Change over time as the company needs change
- Are intended to foster improvement rather than just monitoring
- Reduce amount of subjectivity
•Set targets (depending on strategy)
- Overall company goals?
- Competitors?
- Customer expectations?
december 2010
PwC 4
Data

•Collect data
- Data should be available for constant review
- How many data is involved? Presentation Strategy and Critical
Success Factors
- Do we need a data warehouse? PM

Key Performance
Modeling Indicators and
& Analysis Business

Str
Business Drivers
Intelligence

a
teg
d
u il

ic
lB Consolidation

Bu
na

And Planning

ild
io

Information Data Warehouse Functions

dit
Tra

Consistent
Data Models
Data Transactional and Toolsets
(COA, DW, ERP)

december 2010
PwC 5
Improvement

•Feedback and learning

•Periodic maintenance is needed

december 2010
PwC 6
Performance management

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