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Talking Technology By Steve Burns, Capital News contributor Have you ever wondered why some businesses significantly outperform their competition while serving the same marketplace? Why do some businesses seem to run as one big team while others look like a disjointed group of individual skill sets that are constantly competing with one another? What is it exactly that differentiates the leading businesses from the underperformers? Which category is your business in? Everywhere you look there is a piece of research or advice that seems to contradict the last one that you read on what makes businesses successful. “The eight step formula for success in your business,” is often the recurring theme. If you could only copy what someone else has done, your business would be a raving success. Well, frankly, I beg to differ. While there may be some guiding principles that will increase your likelihood of success, I don’t think there is any one approach that fits all. Businesses today are too complex to suggest otherwise. However, I would suggest that research shows one very simple thing. That is, that if you are not effectively measuring and managing your corporate, team and individual performance, it is highly likely that you will never improve your business – period, full stop, as simple as that. In my opinion, performance management is critical to the success of your company and your team that drives its growth. To me it is evident that the success of a business really no longer depends on how hard you work. While working longer hours may appear like a solution, in fact, I often find that the “underperforming” company is actually working longer hours and achieving lower profitability than the more successful companies in their marketplace. However, in practically every case with the “outperformers” they are doing things very differently than their competitors. They have found a way to clearly differentiate their business in almost every way. Their team is different, their approach is different and their results are different. One of the best places to start in seriously looking at your company is to do what I call a performance audit. This is an external view of how your company is performing right now in your marketplace and where the areas for improvement lie. I do buy into the old adage that “what you can measure, you can manage,” so if you are an under-performing company or, if you simply feel like you are, I am convinced that you can’t close that perceived or actual performance gap unless you know exactly where you are right now. There is nothing like a brutally honest assessment of what is going right in your business and what isn’t, to get you really motivated and focused to change your corporate, team and individual behaviour. It is the first step in heading in the “outperformer” direction. Tomorrow morning I will be facilitating a seminar in Penticton for the Okanagan Science and Technology Council on how performance management can be used to achieve both individual and corporate success. This is one in a series of seminars that OSTEC is hosting with a focus on human resource issues. For more information on this event and other OSTEC events, see www.ostec.ca/events.php. Without giving everything away, the critical questions that will be answered at the seminar include: • What is a performance management system and why use one? • What is a performance audit and why do one? • How can we link corporate, team and individual goals into the performance review process? • Who has what roles and responsibilities in the process? • How can employee self-evaluation be used effectively? • What are 360 degree performance reviews? • What tips and traps should you be aware of? • Which online systems might you use? Here is a quote from an Okanagan chief executive officer that sums the subject of performance management quite nicely. “My business has been an underperformer for years. Without taking a really hard look at where my business was and why it was there, I simply could not have moved my company to the next level. “We still are not where we want to be but we have made significant improvements. “Our performance is way up and I believe that we will overtake the market leader within one year.” Perhaps with a serious look at your business reality, you could create the road map for your business becoming an “outperformer.” Steve Burns is the president and CEO of Burns Innovation Group Inc. and Steve Burns Inc. chartered accountant, which provides consulting and accounting services to entrepreneurs. You can reach Steve at 763-4716.
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