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Talking Technology By Steve Burns, Capital News contributor Last week we looked at how your businesses can become an “outperformer.” This week we will look more closely at the use of performance management to get you there. Research on what makes successful companies, such as the Good to Great book, show one very simple thing that helps to differentiate the great from the good companies 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. Last week, I facilitated a seminar for the Okanagan Science and Technology Council (OSTEC), 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. There are four secrets to performance management that include: Having a crystal clear vision, strategy and plan; using performance measures that are aligned at all levels of the organization; making performance management come alive in your organization every day; and, using continuous feedback and improvement to continually monitor your progress. Without a crystal clear vision, strategy and plan it is next to impossible to use performance management effectively. People must know where the organization is going and how you plan to get there. Otherwise, managing performance without a strategic context could prove meaningless. I think that every company should have a one page performance management plan for all employees in their organization—from the CEO to the janitor. This simple, one page plan, highlights four key things: The top three corporate outcomes to be achieved; the key strategies that will be used to achieve them; what team measures will be in place to measure and manage progress; and, what specific measures will be in place to monitor your own success. Key actions are identified for the overall team (if applicable) and for you. Everyone in the organization utilizes the one page plan to continually monitor their progress. It is an effective tool to literally “keep everyone on the same page.” Getting to the one page performance management plan will take effort by everyone involved. I think that if a company is going to take this seriously then they should spend time off site to really pair down what they are doing and what their key corporate outcomes and priorities are. It is an effective way to not only update or create a strategic plan but there is nothing like having everyone focused on the same end goal as a motivator to improve your business. I think you will be surprised at how such a simply idea can be so effective in helping you to grow your business strategically using performance management techniques. Here are six questions to ask yourself: • Do I have a crystal clear vision, strategy and plan for my business? • Do I have performance measures in place that are effective in managing corporate, team and individual performance? • Are my rewards or incentives properly aligned with my corporate outcomes? • Are we effectively and proactively managing our performance? • Is our performance management system, simple and straightforward? • Am I growing my business in a systematic, manageable manner? If you answered no to two or more of these questions, then you need a performance management system now. Remember, according to Fortune magazine's research, “the ability to measure and manage your corporate, team and individual performance is the single most reliable predictor of your business' success.” Start improving your business' performance today. 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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