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The Role of Strategic Planning in Performance Management

The Role of Strategic Planning in Performance Management

  • General , Performance Management
  • September 15, 2023

Have you ever thought about the magic behind successful companies? At the heart of it, they often weave “strategic planning” and “performance management” into their operations. Think of it as a journey : strategic planning in performance management decides the destination and the path, while performance management and strategic planning help to ensure we’re traveling in the right direction and at the desired speed. The blend of these concepts helps businesses achieve their dreams.

Dive with us on this journey to understand how strategic planning performance measurement and strategic performance management systems play pivotal roles in driving success.

What is Strategic Planning

Strategic planning is a systematic process by which organizations define their future direction and make decisions on allocating their resources to pursue this strategy. Essentially, it’s about determining where an organization wants to go in the next few years and how it’s going to get there. It requires a vision of the future, an understanding of the present circumstances, and the steps required to bridge the gap between the two.

To understand this concept further, here are key components that underlie strategic planning

Strategic Planning

Vision and Mission

These serve as the north star for the entire organization. While the vision statement describes the future desired state of the organization, the mission statement explains its fundamental purpose, outlining why the organization exists.

Situational Analysis

This involves examining the internal and external factors affecting the organization. Tools like SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) are commonly used.

Goal Setting

Goal Setting is broad, long-term aims that define the desired outcome. They provide direction and help in the creation of a strategic vision.

These are specific, measurable, short-term achievements that help in accomplishing broader goals. They provide clarity on what needs to be achieved within a particular timeframe.

Strategies and Tactics

While strategies give a broad approach to achieving the set objectives, tactics are specific actions that need to be taken to implement those strategies.


This involves putting the strategic plan into action. It may entail resource allocation, organizing tasks, and ensuring that everyone in the organization is on board.

Monitoring and Review

No strategic plan is complete without a system to check its progress. Organizations need to continually review and adjust their strategies based on the feedback and results they get.

In essence, strategic planning acts as a roadmap for organizations, guiding them toward a desired future while navigating the complexities of the current environment. It’s a disciplined effort that produces decisions and actions leading to a successful future.

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Relation Between Strategic Planning and Performance Management

The interplay between Strategic Planning and Performance Management forms the backbone of organizational success. While strategic planning provides a roadmap, outlining an organization’s vision and defining its objectives, performance management ensures that this vision is translated into actionable steps and monitored for results. Together, they form a harmonious cycle where planning informs performance actions, and the feedback from performance subsequently refines the strategic direction.

This symbiotic relationship ensures that an organization remains agile, aligned, and purpose-driven in an ever-evolving business landscape.

What Role Does Strategic Planning Play In Performance Management

Strategic planning in performance management sets the direction and benchmarks for organizational success. It begins by laying out a clear vision and goals, which performance management uses as a yardstick to measure progress. This planning aligns individual roles with overarching organizational objectives, ensuring cohesive efforts across the board. The allocation of resources, crucial in achieving set objectives, is guided by the strategic plan. As performance is continuously monitored, feedback refines the ongoing strategic endeavors. This interplay ensures that the organization remains focused on its goals, fosters accountability, and makes informed adjustments as it navigates its path to success.

Key Benefits of Strategic Planning in Performance Management

Key Benefits of Strategic Planning in Performance Management

The integration of strategic planning with performance management offers numerous benefits to organizations. Here are the key advantages:

Clear Direction

Strategic planning acts as the organization’s compass. Establishing a distinct vision and set of objectives ensures that all endeavors, whether big or small, steer towards a common goal. This clarity eliminates ambiguity and provides purpose to every task, project, or initiative.

Improved Alignment

In large organizations, it’s easy for departments or teams to work in silos, potentially pulling in different directions. Strategic planning bridges this gap. It ensures that individual tasks and departmental goals resonate with the company’s larger mission, fostering synergy and a united effort.

Enhanced Decision-making

The presence of a strategic framework aids decision-makers. Instead of relying on gut feelings or short-term gains, they have a reference point that aligns decisions with the long-term vision. This consistency in decision-making ensures that the organization stays on its intended path and avoids costly detours.

Resource Optimization

Resources, be it time, money, or manpower, are often limited. Strategic planning ensures that these resources are directed where they’re needed most, preventing wastage and ensuring that priority areas receive the attention they deserve.

Increased Accountability

With clear objectives and metrics derived from strategic planning, every team member can see how their efforts contribute to the bigger picture. This transparency fosters a culture where individuals take ownership of their roles, leading to enhanced responsibility and a drive to meet or exceed set benchmarks.

Challenges in Implementing Strategic Performance Management

Numerous challenges can arise, potentially diverting the course of action and affecting the desired outcomes. 

Here are 10 primary challenges faced when implementing strategic performance management:

  • Aligning individual performance with organizational goals.
  • Overcoming resistance to change within the organization.
  • Ensuring clarity and understanding of the strategic vision across all levels.
  • Maintaining flexibility while adhering to a set strategy.
  • Gathering accurate and relevant data for performance measurement.
  • Addressing gaps between current capabilities and strategic requirements.
  • Managing complexities of integrating various performance management tools.
  • Avoiding overemphasis on short-term results at the expense of long-term strategy.
  • Ensuring continuous communication and feedback loops.
  • Adapting to external factors and rapidly changing market conditions.

Performance Excellence Through Strategic Planning with Datalligence

At the crossroads of strategic planning and performance excellence lies Datalligence —a tool designed to elevate organizational success. Datalligence isn’t just another management tool. It provides:

  • Real-time performance tracking, ensuring immediate alignment with strategic goals.
  • It promotes collaborative goal setting, engaging teams in shared organizational visions.
  • With built-in feedback mechanisms, it facilitates timely communication and performance enhancement.
  • Its analytics feature provides data-driven insights for informed decision-making.
  • Seamless integration with other enterprise tools offers a holistic approach to performance management.

Together, these features make Datalligence an invaluable ally in translating strategic planning into measurable and commendable performance outcomes.

Strategic planning and performance management are twin pillars holding up the edifice of organizational success. While the former charts the path, the latter ensures we walk it effectively. For organizations aiming to optimize this interplay, guidance from seasoned experts can be invaluable. If you’re looking to elevate your strategy and performance dynamics, our team of experts and coaches is ready to assist. Connect with us and take confident strides toward your organization’s future.

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Performance management: Why keeping score is so important, and so hard

Effective performance management is essential to businesses. Through both formal and informal processes, it helps them align their employees, resources, and systems to meet their strategic objectives. It works as a dashboard too, providing an early warning of potential problems and allowing managers to know when they must make adjustments to keep a business on track.

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Organizations that get performance management right become formidable competitive machines. Much of GE’s successful transformation under former CEO Jack Welch, for instance, was attributed to his ability to get the company’s 250,000 or so employees “pulling in the same direction”—and pulling to the best of their individual abilities. As Henry Ford said, “Coming together is a beginning; keeping together is progress; working together is success.”

Yet in too many companies, the performance-management system is slow, wobbly, or downright broken. At best, these organizations aren’t operating as efficiently or effectively as they could. At worst, changes in technologies, markets, or competitive environments can leave them unable to respond.

Strong performance management rests on the simple principle that “what gets measured gets done.” In an ideal system, a business creates a cascade of metrics and targets, from its top-level strategic objectives down to the daily activities of its frontline employees. Managers continually monitor those metrics and regularly engage with their teams to discuss progress in meeting the targets. Good performance is rewarded; underperformance triggers action to address the problem.

Where do things go wrong?

In the real world, the details of performancemanagement systems are difficult to get right. Let’s look at a few common pitfalls.

Poor metrics

The metrics that a company chooses must actually promote the performance it wants. Usually, it can achieve this only by incorporating several of them into a balanced scorecard. Problems arise when that doesn’t happen. Some manufacturing plants, for example, still set overall production targets for each shift individually. Since each shift’s incentives are based only on its own performance, not on the performance of all shifts for the entire day, workers have every incentive to decide whether they can complete a full “unit” of work during their shift.

If they think they can, they start and complete a unit. But if they don’t, they may slow down or stop altogether toward the end of the shift because otherwise all of the credit for finishing their uncompleted work would go to the following shift. Each shift therefore starts with little or no work in process, which cuts both productivity and output. A better approach would combine targets for individual teams with the plant’s overall output, so workers benefit from doing what they can to support the next shift as well as their own.

Poor targets

Selecting the right targets is both science and art. If they are too easy, they won’t improve performance. If they are out of reach, staff won’t even try to hit them. The best targets are attainable, but with a healthy element of stretch required.

To set such targets, companies must often overcome cultural barriers. In some Asian organizations, for example, missing targets is considered deeply embarrassing, so managers tend to set them too low. In the United States, by contrast, setting a target lower than one achieved in a previous period is often deemed unacceptable, even if there are valid reasons for the change.

Lack of transparency

Employees have to believe their targets encourage meaningful achievement. Frequently, however, the link between individual effort and company objectives is obscure or gets diluted as metrics and targets cascade through the organization. Different levels of management, in an attempt to boost their own standing or ensure against underperformance elsewhere, may insert buffers into targets. Metrics at one level may have no logical link to those further up the cascade.

In the best performance-management systems, the entire organization operates from a single, verified version of the truth, and all employees understand both the organization’s overall performance and how they contributed to it. At the end of every shift at one company in the automotive sector, all employees pass the daily production board, where they can see their department’s results and the impact on the plant’s performance. The company has linked the top-line financial metrics that shareholders and the board of directors care about to the production metrics that matter on the ground. Frontline employees can see the “thread” that connects their daily performance with the performance of their plant or business unit (Exhibit 1).

A senior leader at another manufacturer aligns the whole organization around a shared vision through quarterly town-hall meetings for more than 5,000 staff. Managers not only share the company’s financial performance and plant-specific results but also introduce new employees, celebrate work anniversaries, and recognize successful teams. Most important, if targets are missed, the senior leader acts as a role model by taking responsibility.

Lack of relevance

The right set of metrics for any part of a business depends on a host of factors, including the size and location of an organization, the scope of its activities, the growth characteristics of its sector, and whether it is a start-up or mature. To accommodate those differences, companies must think both top-down and bottom-up. One option is the hoshin-kanri (or policy-deployment) approach: all employees determine the metrics and targets for their own parts of the organization. Employees who set their own goals tend to have a greater sense of ownership for and commitment to achieving them than do those whose goals are simply imposed from above.

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Lack of dialogue.

Performance management doesn’t work without frequent, honest, open, and effective communication. Metrics aren’t a passive measure of progress but an active part of an organization’s everyday management. Daily shift huddles, toolbox talks, after-action reviews, and the like all help to engage team members and to maintain a focus on doing what matters most. Applying the “plan–do–check–act” feedback loop, based on pioneering research from Charles Shewhart and W. Edwards Deming, helps teams learn from their mistakes and identify good ideas that can be applied elsewhere. And in many high-performing companies, supervisors act as coaches and mentors. One-on-one sessions for employees demonstrate concern and reinforce good habits at every stage of career development.

Lack of consequences

Performance must have consequences. While the majority of employees will never face the relentless “win or leave” pressure typical of professional sports, weak accountability tells people that just showing up is acceptable.

Rewarding good performance is probably even more important than penalizing bad performance. Most companies have various kinds of formal and informal recognition-and-reward systems, but few do enough of this kind of morale building, either in volume or frequency. In venues from lunchroom celebrations to town-hall announcements, employee-of-the-month and team-achievement awards are invaluable to encourage behavior that improves performance and keeps it high. One COO at an industrial-goods company keeps a standing agenda item in the monthly business review for recognizing the performance of individuals and teams. Employees on the list may find a gift waiting at home to thank them (and their families) for a job well done.

Lack of management engagement

The words of Toyota honorary chairman Fujio Cho—“Go and see, ask why, show respect”—are now famous as basic lean-production principles. Yet in many companies, senior managers rarely visit plants except during periodic business reviews, and they appear on the shop floor only when a major new capital improvement is to be inspected.

Management interactions with frontline personnel are an extremely powerful performance-management tool. They send a message that employees are respected as experts in their part of the business, give managers an opportunity to act as role models, and can be a quick way to solve problems and identify improvements.

One company’s machinery shop, for example, had developed such a reputation for sloppiness and missed deadlines that managers suggested outsourcing much of its work. When a senior manager was persuaded to visit the workshop, he was appalled at the dirty, cluttered, and poorly maintained environment. Employees reported chronic underfunding for replacement parts and tools, and asked the manager what it would take to save their jobs. He told them to “clean up the shop and give me a list of what needs to be fixed.” Both sides lived up to their commitments, and in less than a year the shop became a reference case for efficiency within the company.

Building a strong performance-management system

The best companies build performance-management systems that actively help them avoid these pitfalls. Such systems share a number of characteristics.

Metrics: Emphasizing leading indicators

Too often, companies measure and manage performance through lagging indicators, such as compliance with monthly output or quality targets. By the time the results are known, it is too late to influence the consequences. The best companies track the same metrics—but also integrate their performance-management systems into critical process inputs. Industrial Internet technologies, such as the SCADA 1 1. Supervisory control and data acquisition. architecture and distributed-control systems, let manufacturing staff know within minutes (or seconds) about variations in performance, even in remote parts of a plant. That lets people react long before the variation undercuts output or quality.

Some changes require almost no investment in technology. At the end of each workday, for example, production and functional teams can complete a checkout form assessing how it went. A combination of quantitative and qualitative metrics and simple graphics (such as traffic lights and smiley faces) provides an easy, highly effective tool for identifying and correcting issues or problems before the next day’s work begins.

As performance-management systems evolve, the metrics they use will become more complex, incorporating continuous rather than discrete variables: “everyone showed up on time today” will become “the team achieved 93 percent on the schedule-performance index using 90 percent of the labor-performance index.” The extra detail better informs decisions such as whether to add more labor to meet a delivery date or to push out a schedule for delivery.

Sustainability: Standard work and a regular heartbeat

Regardless of changes to metrics and targets, the best companies keep the cadence of meetings and reviews constant, so they become an intrinsic part of the rhythm of everyday operations (Exhibit 2).

The emphasis on regular, standardized processes goes beyond explicit performance-management activities and extends deep into every aspect of a company’s operating models. Standard work, for example, is based on three simple rules. First, there should be a standard for all activities. Second, everyone must have the knowledge and ability to meet that standard. Finally, compliance with it must be monitored and measured.

In many functions, the business cycle forces a regular rhythm or cadence: the weekly payroll, the monthly accounting close, or the quarterly inventory review. Good companies take advantage of these requirements to define a few central metrics, such as cycle times and accuracy, thus driving continuous improvement across every function.

As part of a lean-manufacturing excellence program, one industrial-commodities company encourages employees to indicate “what went well today, what didn’t go well today, what management can do to help” on their productionarea boards every day. Supervisors collect the information on index cards and post them on a lean-idea board. Representatives of each function meet with the plant manager every morning and accept or reject the cards or return them for more information. Every accepted card gets an owner and timeline for completion. Company leaders estimate that the boards generate at least $2 million a year in cost savings or higher output—but the impact on employee morale and engagement is “priceless.”

The great re-make: Manufacturing for modern times

The great re-make: Manufacturing for modern times

This 21-article compendium gives practical insights for manufacturing leaders looking to keep a step ahead of today’s disruptions.

A checklist or standard operating procedure that defines the steps and sequences for every key process usually enforces standard work. In employee onboarding, for example, one company noted that small details—assigning email addresses, telephone numbers, and software and hardware access—were especially important for retaining employees early in their tenures. A checklist is now at the front of each new hire’s personnel file, with a copy in the supervisor’s file. The performance reviews of supervisors now assess how well they handled the onboarding of new employees, and everyone who resigns completes a mandatory exit interview.

Continuous improvement: Standard work is for leaders too

Standard work is essential at all levels of an organization, including the C-suite and senior management in general. Standard work for leaders forces a routine that, while uncomfortable at first, develops expectations throughout an organization. It is those expectations, along with specific metrics, that ultimately drive predictable, sustainable performance.

One global resources company now requires managers to demonstrate that they spend 50 percent of their time on a combination of coaching their people and attending safety briefings, shift huddles, improvement reviews, and production meetings. To free up time, other meetings are scheduled only on one day a week— and conference rooms no longer have chairs.

Taking this approach even further, every autumn a field-services organization commits itself to a comprehensive, enterprise-wide calendar for the entire following year. The calendar sets dates for all conferences, monthly and quarterly management meetings, formal performance reviews, and succession-plan meetings, as well as training and development opportunities. All agendas are fixed, and all meetings are subject to strict time limits. There is little need for additional leeway because internal reporting follows tight guidelines for transparency and timeliness: financial results are published internally every month, while data on the performance of teams and units in meeting annual incentive-plan goals are updated and published monthly on bulletin boards.

Most industrial companies have access to rich data on the performance of their operations. The technological advances associated with increasing use of automation, advanced analytics, and connected devices mean that this resource constantly improves. But how can organizations best use their data? A crucial part of the answer is instant feedback loops, daily performance dialogues, and routine performance reviews. Maintaining the willingness and ability to hardwire these performance-management processes into the rhythm of daily work isn’t sexy—but over the long run, it’s the most effective route to real, sustainable performance improvements.

Raffaele Carpi is a partner in McKinsey’s Lisbon office , John Douglas is an alumnus of the Houston office , and Frédéric Gascon is a senior vice president of RTS and is based in the Montréal office .

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Strategic Planning for Performance Management

Strategic planning has always been difficult. But it is even more so in this age of rapid digital transformation and the pressure of business continuity, which has introduced disruptive changes. What’s needed, ironically, is a methodical approach to how an organization manages strategic planning to allow for beneficial disruption that is not avoidable, balancing finance and operations, engaging existing expertise and factoring in technology to ensure that new initiatives can be strategically aligned to the goals and aspirations of the organization. In essence, the essential foundation for performance management is planning that can ensure its alignment or optimization in order to reach strategic objectives.

The strategic form of planning for performance management translates organizational initiatives into the specific programs and outcomes that organizations need to ensure they maintain, or perhaps improve, their performance and competitiveness. The best strategic planning thus is not only focused on corporate objectives but is continuous, enabling the organization to dynamically compare how it’s currently performing to its plans and rapidly adapt as needed. In a business environment where digital transformation has occurred at a rapid pace, organizations need to be more agile and methodical in how they plan and operate and how they leverage their people and expertise. Strategic planning for digital transformation requires the ability to prioritize innovation and investments to benefit the customer, product and workforce experiences that are part of every organization’s strategic intent.

Many organizations say they do strategic planning; few actually have adapted their business to use it effectively. Traditionally, an organization would develop strategic plans, set corporate objectives and goals for what needs to be achieved, create appropriate portfolios of projects, and then wait for improved outcomes. That is the continuous and strategic part of what performance management provides an organization. It’s usually a step-wise process, with the steps from strategy and plans to initiatives and programs only loosely coupled and managed, resulting in a path to expected outcomes that’s less than optimal. For most organizations, the strategic plan is defined in presentations, documents and spreadsheets that are neither connected nor managed to ensure that employees can access as needed and that goals and objectives are linked and measured. This less-than-optimal environment will not establish confidence in strategic planning, which should operate continuously and seamlessly. Strategic planning requires purpose-designed technology that can support this specific set of requirements. It is not always part of traditional planning applications or performance management that you might find from your traditional HR-focused providers used for annual performance reviews.


Getting started with strategic planning requires a critical eye toward your current approach to this essential business process. If performing well, it is reflected both in operational changes in the organization and in the performance metrics that align to the objectives and associated strategies. If you have not been able to continuously plan, and have failed to adapt to changes in the business, then you look at how connected your planning links your strategic to operational initiatives. Assess the performance and process gaps and determine where cycle times or management oversight may not be ideal. This gap analysis can help you identify areas for improvement and, more importantly, where better priorities and funding – and perhaps more useful and effective technology – will help you develop a more unified and continuous approach.

It’s critical to engage leadership in the evolution of the organization’s strategic planning – this is a digital transformation process for performance management that requires agility and confidence, and so responsibility must fall to those who lead the organization. To develop and execute on strategy expeditiously requires planning software that can support these processes. Every enterprise should manage its strategic plans and portfolios of programs in a way that provides not only a return on the financial investment but also business value and outcomes that are visible and managed with a common approach. Your organization can reach its full potential with a common framework that will enable you to optimize your strategy and plans as well as motivate and engage your workforce. What’s required is a business case that prioritizes the use of dedicated applications for strategic planning for performance management as well as the ability to apply iterative funding to ensure continuous improvement.

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Mark Smith is the Partner, Head of Software Research at ISG and Ventana Research leading the global market agenda as a subject matter expert in digital business and enterprise software. Mark is a digital technology enthusiast using market research and insights to educate and inspire enterprises, software and service providers.

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Analyst Perspectives Archive

it strategic planning performance management

Performance Management

it strategic planning performance management

Ivan Andreev

Demand Generation & Capture Strategist

March 14, 2022 · updated April 2, 2024

17 minute read

Increasingly, organizations are understanding that their management systems must be brought into the 21st century if they are going to be competitive in the current market.

Research shows that previous systems, such as yearly appraisals, are outdated and can even serve to decrease employee engagement and motivation. In light of this, more companies are turning to performance management than ever before.

This dynamic and strategic approach to developing improved performance in employees is gaining ground in companies large and small, including many Fortune 500 and industry-leading organizations.

What is performance management?

The importance of performance management, the purpose and goals of performance management, the benefits of performance management, 15 employee performance management best practices, 5 real-world examples of performance management, what is the difference between performance management and performance appraisals.

Performance management is a strategic approach to creating and sustaining improved performance in employees, leading to an increase in the effectiveness of companies.

By focusing on the development of employees and the alignment of company goals with team and individual goals, managers can create a work environment that enables both employees and companies to thrive.

Based on the definition of performance management, a system is built within an organization to measure and improve the performance of the people in that organization.

In practice, performance management means that management is consistently working to develop their employees, establish clear goals, and offer consistent feedback throughout the year.

In contrast to other systems of reviewing employee performance, such as yearly performance appraisals , employee performance management is a much more dynamic and involved process with better outcomes.

For the Human Resources department, performance management is an important system for onboarding , developing and retaining employees, as well as reviewing their performance.

It is increasingly understood that a yearly performance appraisal system does not effectively engage employees, fails to consistently set and meet company objectives, and does not result in a strong understanding of employee performance.

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Why is performance management important?

In any organization, no matter the size, it is important to understand what your employees are doing, how they are doing it, and why they are doing it.

Without a system in place to define roles, understand individual strengths and weaknesses, provide constructive feedback , trigger interventions and reward positive behavior, it is much more difficult for managers to effectively lead their employees.

Smart organizations pair their performance management with an incentive management process. The two systems have a lot in common, from defining roles and setting goals to reviewing and rewarding employee behavior, and as such, do very well when run simultaneously. Using incentive management also means that the all-important ‘reward’ step of performance management is done properly.

Talent management is an important part of every organization. Three of the main problems that organizations face are:

  • keeping employees engaged
  • retaining talent
  • developing leaders from within

These are the issues that performance management very effectively targets.

1. Keeping employees engaged

Engagement of employees is a focus of any management team. In a yearly appraisal system, goals would be given at the beginning of the year and then revisited 12 months later to see if they had been met. This long stretch of time without feedback or check-in is an almost certain engagement killer.

In fact, 94% of employees would prefer their manager gives them feedback and development opportunities in real-time, and 81% would prefer at least quarterly check-ins with their manager, according to the Growth Divide Study .

The graph displays the difference between traditional performance management vs everyday performance management. The difference is 3-5% vs 39% impact on the performance.

Studies show that employees do best with feedback on a monthly or quarterly basis, with regular check-ins serving as a zone to problem solve, adjust goals as necessary, and to refresh their focus on the goal. In fact, companies where employees meet to review goals quarterly or more frequently are almost 50% more likely to have above-average financial performance.

When surveyed, employees had some negative feelings about a yearly appraisal system:

  • 62% of employees feel that their performance review was incomplete
  • 48% did not feel comfortable raising issues with their manager in between performance reviews
  • 61% feel that the process is outdated
  • 74% feel that they would be more effective with more frequent feedback
  • 68% of executives don’t learn about employee concerns until the performance review

All of this adds up to a lot of missed opportunities to solve problems and increase employee performance and engagement.

As employee engagement rises, nine key performance indicators show successful outcomes. Absenteeism, turnover, shrinkage, safety incidents, patient safety incidents and defects in quality are lessened by at least 25%, and often more, across the board. Customer experience, productivity and profitability all show positive outcomes.

This study, by Gallup , was conducted across a broad range of industries, showing that employee engagement is a critical factor, no matter the industry.

the graph displays how employee engagement affects key performance indicators (KPI's). Negative and positive effects.

2. Retaining talent

Employees who have frequent meetings with management to discuss performance, solve problems and receive training are more likely to stay with the company.

If employees see that their management team is putting in the work to develop them professionally, help them succeed with their goals, and reward performance on a consistent basis, then they are more incentivized to both stay with the company and work harder.

3. Developing leaders from within

This consistent development and partnership between managers and employees allow for the development of leaders from within the company.

Recruiting costs can be extremely high, as are costs for onboarding and training new employees. To be able to groom leaders from within the company means that there is already a proven culture fit with this individual and that training costs and resources spent developing this person into an asset are not lost.

This leadership path also serves as a motivating force for employees, who can see that their hard work will be rewarded with promotions and other benefits.

Performance management also creates a need for management to consistently focus on company objectives and goals, and to consider how best to achieve them. This continual revisiting of goals means that they are more likely to stay relevant, as goals will be adjusted in light of new technology, changes in the market, or other factors throughout the year.

According to Forbes , ‘companies that set performance goals quarterly generate 31% greater returns from their performance process than those who do it annually, and those who do it monthly get even better results.’

The purpose of performance management is to give both managers and employees a clear and consistent system within which to work that, in turn, will lead to increased productivity.

  • This system shows employees the pathway to success, allows for the measuring of performance coupled with feedback and offers training and development opportunities.
  • Performance management allows management to understand what their employees are doing and track progress on company objectives while providing consistent feedback.

There are five main objectives of performance management:

  • Develop clear role definitions, expectations and goals
  • Increase employee engagement
  • Develop managerial leadership and coaching skills
  • Boost productivity through improved performance
  • Develop a performance reward program that incentivizes accomplishment

These performance management goals show a clear path from the developing of goals to the rewarding of increased accomplishment. If one of these performance management objectives is not done well, then the others will suffer as a result.

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Performance management has a multitude of benefits for employees and managers, as well as for the company as a whole. If a company can successfully create an environment of engagement where customers are equally engaged by employees on the front line, their outcome is even better.

240% boost in performance-related business outcomes.

When organizations successfully engage their customers and their employees, they experience a 240% boost in performance-related business outcomes compared with an organization with neither engaged employees nor engaged customers. – Gallup
  • Having well-defined roles and performance standards makes hiring an easier process, as candidates know what is expected of them, and HR can more easily understand if a candidate is a right fit for the role.
  • Those well-defined roles and standards make training easier, as trainers know exactly which areas need to be covered, and which information is nonessential.
  • Consistent developing and revisiting of goals ensure that the organization keeps up with changing market forces easily, and reacts quickly as a whole, regardless of the size of the organization.
  • Clear expectations and roles set employees up for achieving goals from the start, providing a springboard to success.
  • Employees who feel that their company is invested in their success stay with their companies, increasing employee retention.
  • Consistent feedback and coaching from managers lead directly to increased engagement from employees while developing the ability to provide good coaching and feedback leads to more skilled managers.
  • As employees become more skilled, they can move up through the company, creating a leadership pipeline.
  • Productivity will increase thanks to increased engagement, clear goals and upskilling of employees.
  • Employees remain incentivized to perform long-term, as they are properly rewarded for their hard work.

Employee performance management best practices

While performance management can sound deceptively simple, with just four steps as outlined above, the process itself is very complicated. That’s why we have put together this list of best practices for performance management.

Think of it like the essentials of performance management – these will help make sure that your employee performance management system is performing the way it should.

1. Identify the goals of your performance management initiatives

As you are creating your performance management program, you need to understand what you want to accomplish.

Asking the following questions can help you:

  • Is increased productivity a priority?
  • Does your organization want to identify leaders from within and develop them?
  • Do you want to streamline the compensation process?
  • Are you seeking to improve employee retention or engagement?

If you know what you want your program to do, it will be easier to build it to accomplish that goal.

2. Define and describe each role

We mentioned this above, but it bears repeating. It is much harder for an employee to be successful if they don’t know exactly what is expected from them, how they should do it, and what the end result should look like.

3. Pair goals with a performance plan

As you set goals, develop a performance plan to go alongside. Year-long goals often fail, as they are too large and employees can get overwhelmed before they start. A performance plan helps them visualize their path, making it much more likely that they will meet their goal.

4. Monitor progress towards performance targets

Review key areas of performance. Use metrics and analytics to your advantage, tracking how goals are progressing to make sure that interventions can happen early, if necessary.

5. Coaching should be frequent

The point of coaching is to help identify and solve problems before they get too big. If it’s not frequent, it’s not going to help at all. Monthly or quarterly meetings should be held to help keep employees on the right track.

6. Use guidelines to your advantage

Guidelines should be created for each role as part of the first stage of the performance management cycle. These policies or guidelines should stipulate specific areas for, or limits on, opportunity, search and experimentation. Employees do their jobs better when they have solid guidelines to follow.

7. Build a performance-aligned culture

Make sure your workplace has shared values and cultural alignment. A sense of shared values, beliefs and expectations among employees creates a more harmonious and pleasant workplace. Employees should be committed to the values and objectives outlined, and exemplified by, top management.

8. Organize cross-functional workshops

This helps employees – and managers – understand what other departments do, how they think and what their strengths and weaknesses are. They can discover something new and find new connections, which can help them in future work.

9. Management should offer actionable feedback

During these coaching meetings, tensions can arise if the feedback is not given in a constructive, actionable manner. It is not very important to look backward and point fingers, rather management should guide employees towards future success.

10. Keep it professional, not personal

Giving less-than-stellar feedback is hard on both managers and employees, it’s one of the reasons that performance appraisals tend to be a least-liked task. Managers should make sure to keep feedback professional and remember to focus on behavior, rather than characteristics.

For example, pointing out that David regularly turned in important reports late is feedback about a behavior. Saying that David is lazy, and that’s why the reports were often late is feedback about a characteristic. One of these can help an employee own their role in a project’s success (or lack thereof) and the other will make them defensive instantly.

11. It’s not only employees that need training

Management should be trained too. Coaching and offering good feedback are not easy jobs, which is why there are so many specialist coaches out there. For managers to be able to lead well, they should be trained in these skill sets.

12. Take advantage of multiple-source feedback

Ask employees to write feedback for each other. This will give management a more holistic view on employee performance, understand the challenges that teams are facing, and be able to better offer feedback.

13. Don’t depend only on reviews

While the review process is important, it is only one part of the system as a whole. Planning, coaching, and rewarding employees are equally key parts of the system.

14. Problems are not always employee-based

It can be easy to assume that problems are always caused by employees, but that simply is not the case. Problems can arise from external factors such as availability of supplies, internal processes that are causing issues, or organizational policies. Seek out the source of problems as precisely as you can in order to fix them.

15. Recognize and reward performance publicly and frequently

Management cannot expect employees to stay motivated if they are never rewarded, yet many companies overlook this key step. Make sure that employees are compensated and recognized for their hard work, and they will continue delivering for your organization.

Of course, it’s one thing to understand the theory of what performance management is, but it’s another thing to use it in a real company. Let’s take a look at some real-world examples of the performance management process in action:

Google logo

It’s no surprise that Google would show up on a list of companies that use a newer, innovative system of management. This company has always been a trendsetter, and their performance management process is one that relies on data and analysis, as well as making sure that their managers are well trained.

When assessing their performance management system, Google launched a project dedicated to assessing their managers, which has led to a thorough training and future development process that sets managers, and thus employees, up for success.

They also use a system of setting goals that have caught on across multiple industries. Using their Objectives and Key Results (OKRs) system, they reframe the goal-setting process, with great results.

Facebook logo

Another tech trendsetter, Facebook has a performance management process that puts a heavy emphasis on peer-to-peer feedback. In semi-annual reviews, they are able to use that feedback to see how well teams are performing and understand where collaboration is happening – and where it is not. They also have developed an internal software to provide continuous, real-time feedback. This helps employees solve issues before they become problems.

Cargill logo

Cargill is a Minnesota-based food-producer and distributor with over 150,000 employees and serves to demonstrate that even huge companies can ditch unwieldy performance appraisals and institute a new system. In following the latest research on the dissatisfaction of management with outdated performance management process, Cargill created their ‘Everyday Performance Management’ system. The system is designed to be continuous, centered around a positive employee-manager relationship, with daily activity and feedback being incorporated into conversations that solve problems rather than rehash past actions.

The Everyday Performance Management system had overwhelmingly positive results, with 69% of employees stating that they received feedback that was useful for their professional development, and 70% reporting that they felt valued as a result of the continuous performance discussions with their manager.

Adobe logo

Adobe calculated that managers were spending about 80,000 hours a year on performance reviews, only to have employees report that they left those reviews demoralized and turnover was increasing as a result.

Seeing a system that only produced negatives, Adobe’s leadership team made a bold leap into a performance management system that began by training managers how to perform more frequent check-ins and offer actionable guidance, then the company gave managers the leeway they needed to effectively lead.

Management was given much more freedom in how they structured their check-ins and employee review sessions, as well as more discretion in salaries and promotions. Employees are often contacted for ‘pulse surveys’ – a way for the leadership team to make sure that individual managers are leading their teams well. One of the many positive results of this has been a 30% cut involuntary turnover due to a frequent check-in program.

Accenture logo

Accenture is a massive company – over 330,000 people, so changing their systems means a huge effort. When they switched to their new system, they got rid of about 90% of the previous process. Now, they are using a more fluid performance management process where employees receive ongoing, timely feedback from management. This has been paired with a renewed focus on immediate employee development and an internal app for communicating feedback.

There are common threads in all of these examples. Each company has built a system that works for them, rather than following a one-size-fits-all approach. What works for one company might not work for another – it depends on the industry, the speed and flexibility of the company, and the overall goal of the system itself.

With similar names and purposes that sometimes align, it is no surprise that some people find it hard to spot the difference between performance management and performance appraisals.

In fact, performance appraisals are often part of the performance management process , although some companies still rely on performance appraisals alone.

An easy way to understand the difference between the two is that performance appraisals are reactive, and performance management is proactive.

A performance appraisal looks at all of the past actions of the employee within a set amount of time , and rates how well they performed in their role and how many goals they met.

Performance management looks at the present and future of the employee, and what can be done to help future performance and meet future goals . Performance management is focused on the development and training of an employee, and how that can benefit both the employee and the company.

A performance appraisal is a formal, operational task, done according to rigid parameters and in a quantitative manner. HR leads performance appraisals, with input from management. Performance management is much more informal and strategic, led by management with input from the employees in a more flexible manner.

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Strategic performance measurement: Creating a common language to drive execution

Executive summary

The execution of strategy is often difficult and always critical to a company’s success. Companies that excel in execution consistently stand above their peers. To help drive strategy execution and performance improvement, executives in a range of industries should consider using strategic performance measurement (SPM). SPM is an approach that makes an organization’s strategic goals more transparent to line executives and provides an ongoing mechanism to monitor progress toward these goals through simple and intuitive performance measures. SPM creates a common language among all parts of the organization so they can interact transparently and effectively, thus helping to break down silos. SPM has four elements: (1) aligning and cascading strategic objectives down to day-to-day operational goals; (2) developing balanced scorecards for reporting; (3) making reporting easier and focusing on “metrics that matter”; and (4) testing and validating operational and strategic decisions.

Choosing the right metrics to track is the key to successful SPM implementation. In this report, we share several best practices for determining the correct metrics for a company’s specific strategic goals. We also elaborate on some of the common challenges that companies confront when trying to put SPM into action — such as ineffective communication, an excess of data, and the need for executive buy-in — along with possible solutions. Three case studies involving global financial institutions describe in detail how CEOs have employed SPM to align strategic goals with day-to-day operations and on-the-ground, agile decision making.

The key to 21st-century growth

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All companies have some performance measurement practices in place, yet many common challenges persist. These include a lack of clear linkage between strategic objectives and operational performance measures, limited accountability for outcomes at the operational level, an unmanageable number of sometimes random metrics, fragmented and redundant systems and efforts, and a greater focus on metric analysis than on management decision making.

Without a consistent framework for measuring performance that is explicitly and clearly linked to the overall strategy and anchored in strategic goals, organizational units often don’t understand what is expected of them to achieve strategic alignment. At a more basic level, there is often no uniform approach to describe the performance of a business unit, a functional organization, or a department. Consequently, performance-related conversations are often based on anecdotes rather than a common fact base of outcome measures and a common understanding of causal drivers.

To seize growth opportunities today, companies across industries must become much nimbler. In large organizations, success has always depended on all levels of the organization understanding corporate strategy and how it translates into their day-to-day actions. The difference now is that the business environment is in constant flux and changes so rapidly. Agility is essential to keep up, and that means being able to quickly change performance benchmarks and cascade those changes down through the organization so the entire company can work in concert to deliver on strategic goals. SPM is a powerful methodology that can close the gap between strategy and execution.

Case study 1: A leading discount brokerage

A large discount brokerage had integrated several acquisitions successfully over the previous 10 years, fueling fast growth, and its newest acquisition was poised to increase the company’s revenues by 50 percent. The new CEO and CFO wanted to connect their strategy to day-to-day operations more effectively — particularly when it came to meeting the changing expectations of customers for more digital and self-service offerings. They also wanted to better understand profitability by each client segment, product, and geography.

The company rolled out strategic performance measurement to accomplish three key goals. First, it translated strategic objectives into outcomes so it could measure using a limited number of key performance indicators.

Second, these KPIs were cascaded down to all functional areas — such as marketing, technology, operations, and other supporting functions — by creating drill-down views of the metrics, thus linking strategic goals to operational-level actions and performance. Dashboards were aligned by using a common language: for example, using the same definitions and parameters to calculate the metrics across different business units and functional areas.

Finally, KPIs were designed to better evaluate client segments. In the past, the company understood revenue, but costs were more difficult to calculate and allocate as there were many common costs spread across the organization. The new set of KPIs allowed leaders to allocate costs more precisely to determine the true profitability of business units and client segments.

Case study 2: A U.S. bank holding company

New U.S. regulations required an international bank with large U.S. operations to create a U.S. bank holding company for all its business units, which included a commercial bank, retail bank, wealth management unit, auto lending unit, and investment banking arm. In the past, these business units reported results independently with little uniformity. But the new holding company structure required that these BUs report results as a bank holding company so results could be rolled up.

The new CEO settled on three strategic objectives: creating a common language among the BUs; driving consistency of reporting across business units; and using uniform monthly reporting to understand performance across the businesses on a regular basis. One of the big changes for this institution was to delve much deeper into nonfinancial metrics, such as client segments, products, and operations. In the past, it had focused only on financial income statements.

The executive also wanted to evaluate switching the business strategy from branch-based sales to product-based sales. That required organizational changes and the implementation of new metrics to measure profitability by branch, client, and product. SPM offered a way to stress-test the idea and various scenarios before full implementation. A prototype of the reporting templates for the executives was tested and refined before being moved into production.

Case study 3: A global asset servicer

The CEO of this global asset servicer felt that the company’s strategy was not well connected to the operational goals. Moreover, there was little consistency in reporting among business units, and executives were being sent too many reports on a daily basis — anywhere from five to 10 — that did not aid decision making.

Here, the SPM framework was used to streamline the reporting process, help the company focus on “metrics that matter,” and execute the strategy better by drawing a clear line from strategic goals to the outcomes. KPIs were defined to measure the progress against the outcomes and the specific on-the-ground operational initiatives that drove the KPIs. For example, one of the company’s strategic goals was to improve the client experience. The metrics selected to measure progress against that goal were a client satisfaction index and a net advocacy score (which measures current customers’ willingness to promote the institution to others).

One specific operational goal the company settled on to improve those two metrics was to drive average hold time in the inbound customer service call center to less than one minute. This led to internal debates on whether the company should hire more customer service reps or invest in making the process more efficient, questions that were resolved through some rigorous financial modeling and cost-benefit analysis — a good example of connecting strategic goals to day-to-day operational decisions.

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Arjun Saxena

Principal, Strategy& US

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The Role of Strategic Planning in Performance Management, Part 1

  • September 4, 2011
  • Posted by: andreag
  • Category: Growthlines High Performance Performance Management Purpose-Vision-Culture Strategic Planning

it strategic planning performance management

How do you successfully tackle performance management, and what role does strategic planning play? This post is the first of two on how to make strategic planning align with performance management. The focus in this post is on the big picture while the next  targets accountability.

Linking strategic planning and performance management

Performance Management is most often defined in the context of Human Resources. I have broadened that definition to incorporate more of the organizational outcomes as a whole. The performance of individuals clearly impacts organizational performance and vice versa. Incorporating both perspectives within the framework of strategic planning provides the best opportunity for success. For targeted information on a performance management tool specifically designed to support HR and personnel management, view our post on Dann’s 7 Questions .

So, my broader definition of performance management is making continual progress in positively impacting the key indicators of your business. Your strategic plan provides the basis for what your key indicators are.  What is your vision? Mission? Goals? Key projects? Improving performance on key indicators requires outlining how the strategic work will be held on an executive level, board level and front-line staff level.

Your strategic plan and the planning process are the tools to deliver what is needed for performance management. They define the changes needed to positively impact your key indicators and answers why the changes are important. Without a clear strategy, units of the organization will define their own agenda, there will be uncoordinated, unfocused efforts to improve, and the impact on performance will be dramatically diluted. In short, your strategic plan defines both how and why you will achieve your performance management goals. Here’s how it works.

Strategic planning components drive improved performance

Improved performance consists of innovation, a better growth strategy, and/or improved execution. Your strategic plan should define the best combination of these for sustained improved performance, i.e., the plan targets growth strategies, innovation and/or improved execution. This is done through two assessments, the strategic and the internal.

The strategic assessment defines priority opportunities and threats to innovation/growth of the business. The outcome is the list of priority, executable strategies for growth. The internal assessment defines priority opportunities to improve performance through better quality, better consistency, lower cost, better fulfillment, better systems, better morale, better leadership etc. Put together, you have your strategic or change agenda that spurs improved performance, in short, you have the change agenda for performance management.

An effective assessment process should yield four to six projects that are a mix of both internally and strategically focused work. Much more than this and you will begin to see diminishing returns. This is because 80+% of leadership’s time needs to be devoted to managing what you are doing now. The resources available for defining and managing the change agenda are scarce and very precious.

Using the strategic plan for performance management

it strategic planning performance management

Once you have defined the change agenda, you must manage the journey to get there. Two key tools help in that task, metrics and accountability.

First, to the extent possible, each project on your strategic plan should include a metric or measure that tells whether the strategy you have chosen is working (e.g. did the implementation of the new marketing campaign increase sales opportunities?, did the new web-site increase traffic?). It is not enough to simply measure if you are implementing the projects in your strategic plan, you need to measure whether or not the projects are working. Get off what isn’t working and pour the resources into what is. Learn more on building successful strategic planning metrics here .

We will delve into the second key to managing the journey, accountability, in our next newsletter . In the meantime, know that without implementing a process to keep team members accountable for their commitments on the strategic plan, their focus will be on the urgent tasks at hand.

Both accountability and metrics require regularly sitting down as a team and assessing progress. What do the metrics tell you? Where is performance sluggish? Are you on the wrong road or do you just need to make some adjustments to the plan? Putting a strategic plan in place that is regularly discussed and monitored is vital to successful performance management.

The other components of performance management

Your strategic plan is but one tool in performance management, though certainly a vital one. It sets the performance agenda, can manage that agenda and can measure whether strategies are, in fact, improving performance.

good strategy is important

The additional tools for performance management include the following:

  • Balanced Scorecard or what we call Instrument Panel to measure overall performance metrics. Uniquely designed for each organization, this monitors your value-proposition, factors that distinguish you from the competition, key success measures and key systems that drive success.
  • Process Improvement which drills down into the specific systems that drive performance and works to de-bug them.
  • A strong organizational structure to assure the organization supports an efficient workflow.
  • Production statistics for organizational units in the structure as well as each employee.
  • Incentives and rewards for improved performance both for the individual and organization-wide.

How to move forward

So what do you do next? Start by evaluating your current planning system and strategic plan that are in place. Do you have a strategic agenda that targets growth and innovation, as well as internal systems and structures? Are you measuring the impact of the work you are doing to know that it is having the desired effect? Do you have any of the other components of performance management listed above in place?

If you want help with the answers to any of these questions, we would be happy to be a resource for you. For assistance with the analysis or on how to get started on building a better strategic plan, give us a call, (907) 276-4414 or e-mail us.

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“The Aleutians East Borough has used the PGS strategic planning method for the last 4 years. The process has increased the Borough’s productivity and resulted in overall improvements in team performance and engagement. The PGS Approach has also allowed us to successfully manage substantial multi-year projects efficiently and effectively.”

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What Is Strategic Performance Management? Definition, Process, and Best Practices

Strategic performance management aligns employee performance with four key areas

Table of Contents

What is strategic performance management, key components of strategic performance management, 5 steps to launch a successful strategic performance management plan, 7 strategic performance management best practices to follow, get a head start with these online courses.

Strategic performance management is defined as the methodology to improve performance measurement, monitoring, and improvement to achieve overall organizational objectives.

Strategic performance management is often practiced using the balanced scorecard framework, which matches employee performance to financial success, customer satisfaction, internal process efficiency, and organizational capacity optimization.

Mercer’s recent survey Opens a new window of 1,154 HR leaders found that only 2&percnt; of companies currently achieve “exceptional value” from their performance management systems. This could be due to an inordinate focus on individual employee goals without adequate alignment with organizational targets. Mercer found that 83&percnt; of companies follow individual goal setting, but these are tied to business unit goals in 56&percnt; of cases.

This is where strategic performance management comes in. It places a keen focus on organizational strategy and how it is being fulfilled through employee performance and improvements in workforce capabilities. By adopting strategic performance management, you can bridge the gap between on-ground performance and high-level business transformation more effectively.

You could look at many variants of performance management, such as formal/annual performance management, continuous performance management, and agile performance management. Strategic performance management is among the most tried and tested tactic that’s been popular among large organizations such as Unilever and P&G.

To clearly understand the concept of strategic performance management, you need to take a closer look at the balanced scorecard approach.

What exactly is a balanced scorecard?

Simply put, a balanced scorecard is a popular strategic performance driver that positions individual employee performance at the intersection of four key facets:

1. Financial: How is an employee contributing to company revenues? How does employee performance directly correlate to movement in share prices by improving business outcomes?

2. Customer: Has customer satisfaction ratings (CSAT) improved as a result of employee performance? Do other indicators of customer success (net promoter score, customer lifetime value, churn, etc.) show an uptick? Has the company successfully acquired a new customer base?

3. Internal: How did employee performance make internal processes more efficient and effective? Did an employee excel in a particular process? Was employee participation instrumental in bringing about meaningful internal transformation?

4. Capacity: Has the capability of the company undergone a change due to employee efforts? Has the company become more scalable with a greater production capacity? How many new innovations have been introduced and adopted in the measurement period?

Employees are rated on these four parameters and the cumulative result indicates their overall performance score. Some companies follow a numerical 1 to 5 system, one being entirely below the expectations and five being significantly over-reaching the expectation. Others might follow a descriptive format, assigning values like “needs improvement,” “met expectations,” and “above expectations.”

By planning each employee’s performance along these four parameters as it correlates to the overall company’s performance, you can make sure that your employees successfully deliver on the near- and long-term goals of the company.

Of course, every performance metric must be communicated clearly to employees, keeping in mind each employee’s capability and capacity, and ensuring alignment at very early stages to ensure a clear expectation setting.

Learn More: Time Tracking and Screen Monitoring: Are You Having Trouble Trusting Remote Employees? Opens a new window

Once you are clear on your organizational objectives and how they relate to individual talent/output, you need a strategic performance management system that can align these elements and help to orchestrate them smoothly. This system will comprise:

● A goal-setting and identification tool: Allows C-level executives and business leaders to study trends, perform forecasting, and set tangible goals for the company

● Outcome-oriented system: Monitors organizational performance and growth in line with the goals that are already set; can cover the four elements of the balanced scorecard

● Workforce segmentation: Segments employees into groups based on performance parameters for easy monitoring and alignment

● Employee-level performance management: Tracks employee performance continuously with respect, empowers regular feedback, and supports check-ins

● Seamless integration: Enables integration of employee performance management systems and organizational KPI dashboards for alignment of data

● Effective communication: Provides an internal marketing, communication, and feedback mechanism to widely share C-level goals with the entire workforce, encouraging self-improvements

Equipped with these components, a strategic performance management system can accelerate individual improvements while constantly moving in tandem with the holistic organizational direction. For example, if a company is looking to venture into new areas, the workforce can quickly upscale to meet the requirements and unlock the business opportunity at hand.

A look at the six elements described above suggests the core premise underlying strategic performance management. In order to pivot your employees towards a highly outcome-focused plan, here are the steps to creating and launching a multi-layered process for successful strategic performance management.

1. Collaborate with every tier of leadership

A good strategic performance plan begins with accurate and attainable goals. Once these high-level goals have been identified, you can collaborate with business unit leaders, managers, and ground-level employees to break down each goal into its actionable parts and ensure that each stakeholder understands their accountability.

For instance, revenue growth targets might entail alignment with hiring, leads, and sales targets, employee productivity in each team, and so on. To ensure effective execution, you will need to collaborate with the leaders/managers of individual teams to clearly convey the hierarchy of goal setting as per the organization’s annual targets.

2. Implement the right performance management tools

Technology can be a massive help when transitioning to strategic performance management for the following reasons:

● It integrates multiple layers of data to offer a 360-degree employee performance view

● It ensures transparency in performance evaluation without any bias or ambiguity

● It maintains a searchable record of employee performance for compliance

● It highlights trends for succession planning and leadership potential identification

● It auto-generates performance reports for feedback and improvement

Most performance management software available in the market is compatible with goal setting, progression tracking, and continuous feedback.

3. Conduct change management sessions

Employees may not be able to switch to strategic performance management easily. That’s why HR needs to deploy a robust change management practice, acclimatizing employees with the new system, ironing out any bottlenecks, and ensuring that an outcome-focused culture is in place.

Remember, a high-performance culture (that’s not toxic) is at the cornerstone of the success of strategic performance management. You need to outline the organization-level targets that employees are striving for, and why they matter to them personally . This step might involve rigorous manager training so that they can motivate and mobilize the workforce effectively.

4. Reward employees and incentivize performance

A big part of strategic performance management is linking individual accomplishments to a tangible reward/compensation element.

In most companies, the framework is linked to annual appraisals (which can be broken down into quarterly MBOs), where an employee’s performance in terms of financial wins, customer acquisition, internal efficiency, and capacity improvement leads to a salary hike or promotion. Companies can even define their own balanced scorecard, with parameters such as teamwork, innovation, or culture-add. In the short-term, you can incentivize performance through rewards or even non-monetary recognition in a social setting. However, long-term performance uptick must necessarily be linked to compensation.

5. Review performance and deploy L&D measures

To improve performance and bring it consistently closer to the desired goals, you need to invest in talent development through learning and development Opens a new window programs. Targeted and strategic learning programs ensure continuous employee improvement, especially in high-demand areas that are key to organizational success.

Measures could range from hands-on learning for hard skills to executive coaching for soft skills, and niche training (diversity & inclusion, emerging technologies like XR, etc.). Learning progress should be regularly tracked to ensure alignment with a strategic performance management plan, pivoting as necessary in an agile model.

Learn More: 3 Leading Trends From the 2020 Deloitte Global Human Capital Trends Decoded Opens a new window

Best practices that enable strategic performance management

1. Encouraging continuous learning among the workforce

To successfully meet organizational goals, every employee must realize their true potential and advance their career trajectory within the company. This requires continuous learning as part of the workflow, aided by digital enablers such as mobile learning and nudge alerts.

2. Checking for buy-in at regular intervals

In a dynamic organization, high-level goals and employee-level understanding of targets might undergo change quite frequently. That’s why the strategic performance management plan needs to be revisited/fine-tuned every quarter to ensure steady alignment.

3. Taking advantage of sophisticated analytics

A cutting-edge strategic performance management system is incomplete without data analytics. It unearths insights from employee performance records, highlighting how people assets could be better leveraged. You can combine analytics with a natural language processing engine, so that non-technical business leaders can explore the data easily.

4. Putting in anti-bias checks and balances

There is always a risk of bias creeping into your performance evaluation, and strategic performance management is also open to this risk. Consider for example, an employee who was on paternity leave and could not meet the team productivity average. The requisite checks and balances will ensure an objective review, considering all factors.

5. Improving your decision-making systems

Without the right roles in place, strategic performance management is doomed from the start. This makes accurate and data-driven decision-making absolutely critical, equipping company leaders with a predictive view of company growth – which brings us to the next best practice.

6. Promoting a data-driven culture

A data-driven culture empowers employees to track their own progress, self-review, and share performance insights with their peers. It means that there is a culture of pervasive intelligence Opens a new window in place, where data analytics interfaces are democratized for pan-organizational access.

7. Allocating an incubation period for ROI

Remember, a strategic performance management system won’t start to show results in the first quarter of implementation. The chances are that it might take an entire year to find resonance with your workforce and the company’s culture. It is advisable to allocate an incubation period before expecting an uptick in organizational growth, so as to avoid sunk costs.

Understandably, strategic performance management might be difficult to navigate. So, if it’s still early days at your company, there are several online courses that can help you acquire the skills you need to expertly manage this performance management Opens a new window model.

Most leading institutions offer learning opportunities in strategic performance management. And several of these courses are available online, so you can take them at your convenience. Here is our selection:

● Strategic Performance Management Opens a new window on Class Central Opens a new window : This course is provided by the Indian Institute of Technology, Kharagpur, and discusses the multiple facets of performance management, its relationship with strategic planning, and how to use a rewards system. It is an 8-week course that comes with paid online certifications.

● Strategic Performance Management Opens a new window – Tome 1: Managing Strategy on Udemy Opens a new window : This course discusses how to develop a mission statement, the various strategic themes to explore, and the details of a balanced scorecard. It’s an excellent course for those getting started with performance management and is available in a two-hour-long video format.

● Strategic Performance Management Opens a new window Model on Coursera Opens a new window : This part of Coursera’s HR for People Managers Specialization, with four modules covering the strategic performance management model, its role, pitfalls, and impact on strategy. It is available as a video, which you could try for free if you are not a Coursera member already.

Strategic performance management is a field-proven formula for improving performance and achieving organizational goals.

It balances large-scale targets with employee-centricity, empowering employees to maximize their full potential by constantly pushing the organizational needle in the right direction. With the right toolkit and the requisite set of best practices, you can leverage this methodology, and take your company to new heights.

Do you think strategic performance management has a role to play in organizational growth and success? Why, or why not? Share your thoughts with us on LinkedIn Opens a new window , Twitter Opens a new window , or Facebook Opens a new window .

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Why Is Strategic Planning Important?

Above view of team creating a strategic plan

  • 06 Oct 2020

Do you know what your organization’s strategy is? How much time do you dedicate to developing that strategy each month?

If your answers are on the low side, you’re not alone. According to research from Bridges Business Consultancy , 48 percent of leaders spend less than one day per month discussing strategy.

It’s no wonder, then, that 48 percent of all organizations fail to meet at least half of their strategic targets. Before an organization can reap the rewards of its business strategy, planning must take place to ensure its strategy remains agile and executable .

Here’s a look at what strategic planning is and how it can benefit your organization.

Access your free e-book today.

What Is Strategic Planning?

Strategic planning is the ongoing organizational process of using available knowledge to document a business's intended direction. This process is used to prioritize efforts, effectively allocate resources, align shareholders and employees on the organization’s goals, and ensure those goals are backed by data and sound reasoning.

It’s important to highlight that strategic planning is an ongoing process—not a one-time meeting. In the online course Disruptive Strategy , Harvard Business School Professor Clayton Christensen notes that in a study of HBS graduates who started businesses, 93 percent of those with successful strategies evolved and pivoted away from their original strategic plans.

“Most people think of strategy as an event, but that’s not the way the world works,” Christensen says. “When we run into unanticipated opportunities and threats, we have to respond. Sometimes we respond successfully; sometimes we don’t. But most strategies develop through this process. More often than not, the strategy that leads to success emerges through a process that’s at work 24/7 in almost every industry.”

Strategic planning requires time, effort, and continual reassessment. Given the proper attention, it can set your business on the right track. Here are three benefits of strategic planning.

Related: 4 Ways to Develop Your Strategic Thinking Skills

Benefits of Strategic Planning

1. create one, forward-focused vision.

Strategy touches every employee and serves as an actionable way to reach your company’s goals.

One significant benefit of strategic planning is that it creates a single, forward-focused vision that can align your company and its shareholders. By making everyone aware of your company’s goals, how and why those goals were chosen, and what they can do to help reach them, you can create an increased sense of responsibility throughout your organization.

This can also have trickle-down effects. For instance, if a manager isn’t clear on your organization’s strategy or the reasoning used to craft it, they could make decisions on a team level that counteract its efforts. With one vision to unite around, everyone at your organization can act with a broader strategy in mind.

2. Draw Attention to Biases and Flaws in Reasoning

The decisions you make come with inherent bias. Taking part in the strategic planning process forces you to examine and explain why you’re making each decision and back it up with data, projections, or case studies, thus combatting your cognitive biases.

A few examples of cognitive biases are:

  • The recency effect: The tendency to select the option presented most recently because it’s fresh in your mind
  • Occam’s razor bias: The tendency to assume the most obvious decision to be the best decision
  • Inertia bias: The tendency to select options that allow you to think, feel, and act in familiar ways

One cognitive bias that may be more difficult to catch in the act is confirmation bias . When seeking to validate a particular viewpoint, it's the tendency to only pay attention to information that supports that viewpoint.

If you’re crafting a strategic plan for your organization and know which strategy you prefer, enlist others with differing views and opinions to help look for information that either proves or disproves the idea.

Combating biases in strategic decision-making requires effort and dedication from your entire team, and it can make your organization’s strategy that much stronger.

Related: 3 Group Decision-Making Techniques for Success

3. Track Progress Based on Strategic Goals

Having a strategic plan in place can enable you to track progress toward goals. When each department and team understands your company’s larger strategy, their progress can directly impact its success, creating a top-down approach to tracking key performance indicators (KPIs) .

By planning your company’s strategy and defining its goals, KPIs can be determined at the organizational level. These goals can then be extended to business units, departments, teams, and individuals. This ensures that every level of your organization is aligned and can positively impact your business’s KPIs and performance.

It’s important to remember that even though your strategy might be far-reaching and structured, it must remain agile. As Christensen asserts in Disruptive Strategy , a business’s strategy needs to evolve with the challenges and opportunities it encounters. Be prepared to pivot your KPIs as goals shift and communicate the reasons for change to your organization.

Which HBS Online Strategy Course is Right for You? | Download Your Free Flowchart

Improve Your Strategic Planning Skills

Strategic planning can benefit your organization’s vision, execution, and progress toward goals. If strategic planning is a skill you’d like to improve, online courses can provide the knowledge and techniques needed to lead your team and organization.

Strategy courses can range from primers on key concepts (such as Economics for Managers ), to deep-dives on strategy frameworks (such as Disruptive Strategy ), to coursework designed to help you strategize for a specific organizational goal (such as Sustainable Business Strategy ).

Learning how to craft an effective, compelling strategic plan can enable you to not only invest in your career but provide lasting value to your organization.

Do you want to formulate winning strategies for your organization? Explore our portfolio of online strategy courses and download the free flowchart to determine which is the best fit for you and your goals.

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6 Steps To Successful Strategy Execution

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Strategic planning is hard, but the real challenge is execution. Connecting the dots between strategy and action can feel like an impossible task. And if you’re thinking, “ but I have a solid plan in place, ” think again. You might have heard that a staggering 90% of strategic plans fail to succeed . But did you know that even today, 50% of strategies still don't get executed?

In a world where disruptions have become the new normal and competition is intensifying, it's more important than ever to tie planning and execution together.

Business leaders and executives have started paying attention to this gap, but many organizations still struggle to find the right approach to strategy execution. They get bogged down in endless planning cycles, spreadsheets, and disconnected business tools that make it difficult to move the needle forward.

In this article, we’re going to share a proven framework and a tool to help you close the strategy execution gap and move your business forward.

Free Template Download our free Strategy Execution Template Download this template

What Is Strategy Execution?

Strategy execution is the process of making a company's strategic plan happen. This helps the company achieve what it wants to do. It means making sure everyone and everything works together to turn a company's vision and strategic objectives into reality.

This guide will show you the key steps to follow when you develop a successful strategy execution plan . At a high level, the execution journey encompasses the following:

6 steps to successful strategy execution (1)

You'll notice two key things about this strategy execution diagram:

It's circular

Strategy isn't a process. It’s a way of running your organization. It never ends and is 100% iterative .

It's holistic

Few organizations have tangible connections between their strategic plan and their processes for reporting , performance management, and rewarding employees. All your business processes need to work in harmony and be coherent if you're to be truly successful.

So, how do you successfully execute a strategy? Let's break down the individual phases of this diagram so you understand how to develop a business strategy execution plan:

6-Step Strategy Execution Framework

1. strategic planning.

Effective planning is crucial to the success of any strategy, as haphazard plans often lead to failure. Data suggests that as much as 83% of strategies fail due to faulty assumptions in the strategy formulation process.

To successfully execute a strategy, the planning process is the first and most important step. We've written extensively about how to write good strategic plans .

Your planning phase needs to address at least the following questions:

  • What are you going to ultimately achieve? What are your company’s core business metrics ?
  • What steps will you take to get there?
  • What framework will you use to keep you focused and on track (think the Cascade Model, Balanced Scorecard , McKinsey's Three Horizons model , etc.)?
  • How will you structure your strategy reporting ?
  • What’s the frequency of your strategy reviews and meetings?
  • What communications plan do you have in place for your strategy?
  • Who will your strategy mentors or advisers be?

You have to make a plan before you execute the plan.

👉 Click here to get your free strategic planning template.

strategy plan template

💡 Tip: Avoid paralysis by analysis. Staying too long in the planning phase sparks a strategy or execution debate. Shut the debate down and move to the next step.

2. Communication

According to an article by Harvard Business Review, “95 % of employees don’t understand or are unaware of their company’s strategy.”

Unfortunately, many organizations make the mistake of communicating their strategic plan only after it has been developed. You need to start the process of engaging your organization during the planning phase. And once it’s ready, expose it to your people because strategy presentations don’t work .

Rather than simply presenting the plan to your team, it's important to allow them to explore, discuss, and ask questions about it.

Two-way communication is crucial, with guidelines and policies flowing from the top while feedback and ideas come from the bottom. To achieve this, it's important to improve internal communication processes and establish mechanisms for feedback and input.

For example, you need to establish a mechanism for people to provide feedback about the strategy both at the start and as it rolls out. Here are some ways to facilitate this constructive communication:

  • Hold regular team meetings to discuss progress and align goals with the strategic plan.
  • Develop organizational transparency by sharing information with employees.
  • Foster an open and collaborative culture where feedback is encouraged.
  • Create regular formal and informal surveys and questionnaires to gather insights.

Don’t fall into the trap of doing a great job of communicating at the start, only to see efforts fall away as people go back to business as usual! Instead, expose your strategy to your people, keep it alive and up-to-date, and have your people engage with it regularly.

3. Goal setting and alignment

OK, so you've got a plan—the next step is to start creating tangible goals.

To achieve this, it's important to link every activity of your team to the strategic plan. It seems obvious, but many organizations create a plan, communicate it, and expect the rest to happen by magic. By ensuring that everyone in the team has ownership of their goals, you're moving the plan towards fruition.

However, simply creating goals is not enough. Alignment with company goals is essential to give structure to the execution of the plan. By aligning strategic initiatives with overarching business goals, you provide strategic clarity and enable your teams to focus on what matters the most to move the business forward. This, in turn, ensures that strategy execution is going in the right direction.

Through the goal-setting process , you can also reveal critical insights that help you refine your plan:

  • Whether or not the plan is realistic given resource constraints.
  • If you have the right people and skills to execute every aspect of the plan.
  • How well people have understood your overarching business objectives.

Goal management becomes the bedrock for your ongoing tracking, reporting, and performance management. Each of these is a key element in a successful strategy execution.

4. Tracking and reporting

Tracking and reporting on strategic goals is crucial to establishing strategic control and driving progress, but it's easier said than done.

Cascade’s Strategy Report revealed that only 18% of team members review progress on weekly basis.

There are two key components to effective tracking and reporting.

Firstly, you need to ensure that everyone in your organization is regularly updating the progress on their own individual goals. This doesn't have to be arduous or time-consuming—a few minutes per month is usually enough. For example, in Cascade , you can set a cadence for people to update their goals before the review meeting. This helps you ensure that progress is consistently monitored and reported throughout the execution phase.

Secondly, updates should include a quantitative measure of progress against the goal ( KPIs ), as well as a short comment for context. Within Cascade, each team member can post progress updates and add comments in a text or video format so everyone involved understands the context.

Goals should never be seen as static elements of your strategic plan. It’s a given that sometimes you’ll need to change the deadline of a goal or even rewrite the goal entirely as your organization evolves. That’s fine, as long as visibility of those changes exists.

👉Here’s how Cascade can help you:

With Cascade's strategy reports, you can schedule automated progress reports so everyone has access to the latest information. You can customize the content of reports to suit the needs of different audiences. Plus, you can integrate Cascade with your business communication tools ( Outlook , Slack , Teams ) and send updates directly to your manager or the whole team.

5. Performance management

According to Gartner, 58% of businesses believe their performance management systems are not sufficient in monitoring the success of their strategies. When it comes to performance management, the majority of strategy implementation approaches start to unravel.

People generally view performance management (and reviews in general) as the sole domain of human resources. And you’d be hard-pressed to find actual users of the most common performance management systems that have positive things to say about the experience—or how it helps them better execute their company's strategy .

Performance management should be a natural extension of goal setting, which in turn is a natural extension of your strategic plan. It is, therefore, a critical part of your execution action plan.

As you go through the process of reviewing your people’s performance, you need to be able to measure how their contributions align with your company’s strategic goals.

Here’s how a performance management process can help you execute your plan:

  • Individual goals and KPIs relate directly to the organization’s strategic plan
  • It helps you review and reward people for their contributions to the overall strategy
  • The system is simple to use and as close to “fun” as possible
  • It’s social, transparent, fair, and well understood

Few off-the-shelf performance management systems tick those boxes, but Cascade facilitates the performance review processes and removes many of the friction points.

6. Rewarding

The natural conclusion of performance management is rewarding employees.

You've put so much effort into planning, communicating, and goal-setting —but don’t forget that the one thing that, ultimately, we all (almost all) work for is money.

The importance of connecting rewards back to strategy cannot be understated. This should be easy enough if you create a strategy with individual contributions in mind.

💡Here’s a tip: Don’t treat performance metrics as absolutes.

Achieving your goals in the short term shouldn’t come at the expense of the long term. Progress is just as important as meeting your goals. Don’t destroy your culture by rewarding teams and managers that achieve their goals at the cost of everything else.

Don't forget that rewarding doesn't just have to be monetary. It could be meaningful corporate gifts , travel perk, sending people to conferences, extending them additional leadership opportunities—anything at all that you're doing on a merit basis.

Build a culture of strategy execution by linking rewards to your strategic plan

Strategy Execution Best Practices

Now that you know the essential steps for effective strategy execution, here are the best practices and tips to ensure the success of your strategic initiatives.

1. Form a strategy execution team

Don't just rely on the same old senior leaders to execute strategy. Create a dream team of stakeholders responsible for reviewing past performance and identifying the information needed to create a good strategy. And most importantly, involve stakeholders who will be involved in the execution itself—they will be able to provide additional context to your leadership team. This way, you can plan, prioritize, and execute strategic goals with a dedicated and motivated team from the get-go.

2. Ensure organization-wide strategic alignment

In the realm of strategy, aligning corporate, business, functional, and operational levels is indispensable.

strategy levels diagram

  • Corporate strategy sets the vision. Ensure business-level strategies within units align directly, creating a clear link from corporate vision to daily operations.
  • Business strategies refine the overarching vision. Alignment is key, ensuring actions in business units contribute directly to corporate objectives and maintain organizational focus.
  • Functional strategies within business units, whether in marketing or finance, must align with business-level themes. Each function should enhance the overall corporate strategy, ensuring a unified approach.
  • Operational strategies , the backbone of daily activities, must align with overarching goals, ensuring effective execution within business units.

Achieving organization-wide alignment at all strategy levels is key to successful execution. Helping your team members understand how their actions impact the organization’s bottom line will allow them to make better strategic decisions connected to your overarching strategy.

Cascade’s Alignment Maps & Relationships feature allows you to visualize how different organizational plans work together to form your strategy and map the dependencies that may lie along your journey.

alignment maps in cascade screenshot

3. Make adjustments when necessary

Don’t be afraid to change. The business environment is constantly evolving, so what worked before may not work now. Regularly reviewing and adjusting the strategy ensures you remain aligned with the company's goals and current market conditions. This is the only way to ensure you are going in the right direction and not wasting resources on dead-end strategies.  

📚 Recommended read: Strategic Control Simplified: A 6-Step Process And Tools

4. Use strategy execution software

Many companies still rely on spreadsheets and multiple disconnected tools to monitor their strategy execution. Unfortunately, this approach can lead to more problems than solutions.

Using spreadsheets as a way to track progress is time-consuming and error-prone, and it is hard to keep the data up-to-date in real-time. Moreover, spreadsheets do not provide a comprehensive overview of your performance, making it difficult to identify red flags and opportunities for improvement.

That’s why adopting a specific tool for strategic execution can become your biggest competitive advantage.

Master Strategy Execution With Cascade 🚀

Executing a successful strategy is vital for the growth and success of any organization, but it's easier said than done. With the six steps outlined in this article, you can create a clear roadmap for executing your strategy and ensure everyone in your organization is aligned and focused on business outcomes.

However, without the right tools and technology in place, your efforts may fall short. Here's where Cascade strategy execution software comes into play.

Cascade centralizes your strategy for better, accelerated decision-making rooted in data. With Cascade, you can easily align your team’s efforts with your organizational strategy, set and track goals , and measure progress. You get a centralized place that ensures top-to-bottom alignment and visibility, improved resource management, and fast adaptability.

Don't let complacency or disjointed processes hold you back from achieving your strategic goals.

Say goodbye to the outdated spreadsheet-based approach, and start using Cascade to achieve better results and make your strategy execution process more efficient and effective.

Watch here a product tour of Cascade today and see how it can help you achieve faster results from your strategy. With no sales contact unless you want to . ;)  

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How is Performance Management Linked with Strategic Planning?

it strategic planning performance management

You know you need a better strategy when it is the end of the financial year, and the business still lags much behind the set goals. Your organization is not alone; almost 67% of the organizations fail with their strategic planning.

You cannot take many chances running a startup, especially if you are already burning a good amount of money. And the situation is worse if the organization’s leaders don’t know why they failed.

Continuous performance management may not be the only helpful thing, but it solves many strategic planning problems.

Strategic planning and Performance Management

What are strategic planning and a continuous performance management system?

Business strategic planning is a logical plan aiming to achieve critical business goals. For example, a document containing goals, SWOT analysis, stakeholders, action plan, impact metrics, and time limits. It lays out specific objectives and the actions the team needs to complete to change the state of the organization and business. A good strategic plan will result in improved employees and business.

A continuous performance management system is an ongoing review process focused on measuring and improving performance in relation to individual goals or OKRs (Objectives and key results).

You assign relevant goals to everyone on the team and constantly monitor and optimize their performance by actively collaborating.

For example,  an email marketing professional with a KR (key result): Increase email MQLs by 50% and sits in a weekly meeting with the rest of the marketing team to identify any barriers to achieving the KR.

Now let’s get to the business

How to align performance management with business strategic planning?

Both of the above are interlinked.

You cannot measure progress without a strategy; without some strategy, you cannot improve a person’s performance.

The following points will help you improve the team and business performance by working on strategy and performance management.

Setting the right goals for the right people

Do the leaders in your organization often discuss the role of employees?

A good strategy not only includes everyone in the team but also links their job roles with business objectives.

It can be hard to assign specific tasks to different professionals on the team, but there is a better way around it. 

Here’s how you can assign the proper responsibilities to the proper personnel:

  • Sit with everyone on the team and decide on the company objectives. Choose the company OKRs that directly impact positive business outcomes.
  • Next, assign OKRs to everyone based on the organizational objectives by discussing them with each employee.
  • Give appropriate time to understand the target audience and include it in the strategic planning and OKRs.
  • Also, set priorities based on employee engagement, like increasing productivity and innovative practices.

Creating alignment between stakeholders with OKRs

A big reason for strategy failure is the lack of alignment between the stakeholders in the organization (employees and leaders).

It’s pretty easy to get off track and get into silos when you don’t take measures to come together and discuss the progress of the projects.

The following steps will get your team on the right track:

  • Setting the right set of goals that align with the business strategy.
  • Conduct regular check-ins so the team can update their progress and correct any misalignments.
  • Set quarterly goals for the company. This ensures that everyone is going in the right direction and implementing the right tactics.

Continuous improvement and flexibility in planning

A significant point many companies are missing out in their strategy is continuous feedback and improvement.

When the teams don’t come together regularly, they miss the critical discussion on what’s working and not working on the strategic plan.

Follow these measures to ensure that your business strategy stays accurate:

  • Support active collaboration and enable the team to take charge of that.
  • Use a tool or software that facilitates continuous feedback, collaboration, and strategic planning.
  • A useful software that supports the above kind of collaboration along with strategic planning is OKR management software called JOP .
  • Fix things up and make changes in the strategy if required.
  • See if a given strategy is working out or not by looking at the OKRs in team meetings.
  • Prioritize opinions from your whole team and promote psychological safety.
  • Get timely employee surveys and feedback to improve the team’s engagement.

Continuous performance management can support your business strategy and keep you on the right track.

And to get these things more efficiently, you have to leverage technology.

A good technology product in the performance plus OKR management domain is the JOP (Joy of Performing).

You can manage the OKRs for the team, review their performance, conduct employee surveys, and do much more on the same platform.

Take a tour of our website to know more.

author img

Gaurav Sabharwal

Gaurav is the CEO of JOP (Joy of Performing), an OKR and high-performance enabling platform. With almost two decades of experience in building businesses, he knows what it takes to enable high performance within a team and engage them in the business. He supports organizations globally by becoming their growth partner and helping them build high-performing teams by tackling issues like lack of focus, unclear goals, unaligned teams, lack of funding, no continuous improvement framework, etc. He is a Certified OKR Coach and loves to share helpful resources and address common organizational challenges to help drive team performance. Read More

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Performance Management Planning

  • Performance Management , Strategic Planning and Execution

Ultimate Guide to Performance Management Planning


  • March 5, 2024

Imagine being the HR leader in a fast-growing startup. Your team is great, but you know there’s room for improvement. The problem? Conducting performance evaluations feels like a shot in the dark without a clear plan. That’s where performance management planning comes in – the key to better evaluations and boosting employee productivity.

In this blog post, we discuss everything you need to know to plan your performance management process more effectively.

Easily integrate goals and performance into people’s workflows

What is Performance Management Planning?

Performance management planning is the process of proactively outlining how you’ll evaluate and develop your employees’ performance. It’s a strategic process designed to:

Align individual and team goals with organizational objectives : Ensure everyone understands how their contributions directly impact the company’s success.

Drive continuous improvement : Equip employees with the tools and support needed to actively develop their skills and reach their full potential.

Boost employee engagement : Foster a culture of open communication, honest feedback, and development, keeping your workforce motivated and engaged.

Make data-driven decisions : Collect valuable insights from performance metrics to inform strategic decisions and track progress toward organizational goals.

By implementing performance management planning, you’re creating a structured and consistent approach to evaluation, ensuring both fairness for employees and measurable results for the organization.

What are the key elements of a successful performance management plan?

The key elements of a successful performance management planning process include clear performance goals and expectations, regular feedback and coaching, performance evaluations based on objective criteria, opportunities for development and growth, and a system for recognizing and rewarding high performance.

Forward-thinking organizations leverage technology like Peoplebox’s performance management platform to help them make their processes and performance management planning a breeze. Try it out yourself!

How to Implement a Good Performance Management Plan for Employees in Your Organization

Imagine you’re the HR manager at a thriving company, and you’re eager to elevate the performance of your talented team. Here’s a step-by-step journey to implement performance management planning seamlessly:

Step 1: Setting Organizational Goals

The foundation of an effective performance management system is built upon clear and measurable organizational objectives. These objectives should align with your company’s mission and vision, acting as the guiding light for your entire system. Here’s how to achieve this:

Brainstorm and prioritize goals: Collaborate with key stakeholders across various departments to identify and prioritize high-level objectives. Consider factors like market trends, customer needs, and your company’s long-term aspirations. Engage in open discussions to gather diverse perspectives, ensuring a comprehensive understanding of what truly matters to the organization.

Adopt Effective Goal-Setting Frameworks: OKRs, or Objectives and Key Results, are an impactful framework to adopt at this stage. They provide a structured and measurable way to set and track goals. Objectives define what you want to achieve, and Key Results quantify the progress. Incorporate OKRs into your goal-setting process to enhance clarity, accountability, and alignment with organizational priorities.

sign up for Peoplebox OKR and performance management software

Cascade goals : Breaking down overarching organizational goals into smaller, departmental, and individual goals is crucial. This cascading approach creates a line of sight for employees, allowing them to understand how their individual contributions directly impact the bigger picture. 

Pro Tip : To foster a sense of shared responsibility and motivation, involve employees in the goal-setting process. Solicit their input, encourage them to share insights, and consider their perspectives when defining objectives. This inclusivity not only enhances the quality of goals but also ensures that employees feel a genuine connection to the organizational mission.

Step 2: Establishing Performance Management Framework:

Now that you’ve set the stage for your performance management journey, it’s time to establish a robust framework that will guide you through the process. Here’s how you can do it:

Choose a performance management model: Outline the specific processes and procedures for managing performance within your organization. This includes determining how performance will be assessed, monitored, and reviewed. There are many performance management models that you can leverage. If you aren’t familiar with them, we recommend checking out our latest blog post, “ Performance Management Models: A Comparison .” 

Choose Relevant Performance Metrics and Evaluation Methods : Identify key performance indicators (KPIs) and metrics that align with your organizational objectives and individual job roles. These metrics should be measurable, meaningful, and directly tied to desired outcomes. For example:

  • For customer service roles: Customer satisfaction score, average resolution time, first contact resolution rate.
  • For sales roles: Sales quota attainment, average deal size, lead conversion rate.
  • For marketing roles: Website traffic, conversion rate, social media engagement metrics, brand awareness metrics.

Use performance measurement platforms such as Peoplebox to gauge Key Performance Indicators (KPIs) against set targets, ensuring that your decisions consistently align with your overarching goals.

Role of Technology in Performance Management: Leverage technology to streamline and enhance your performance management processes. Invest in performance management software platforms, like Peoplebox’s performance management platform, that offer features such as goal setting and tracking, feedback collection and analysis, performance review automation, and reporting capabilities. 

These tools can help automate administrative tasks, facilitate communication and collaboration, and provide real-time data and insights for informed decision-making.

Peoplebox demo

Step 3: Developing Performance Goals

Now, it’s time to translate organizational strategic goals into individual and team performance objectives. And for this, as we discussed above, we will be looking into OKRs.

OKRs, or Objectives and Key Results, are a goal-setting framework used by many successful organizations, including Google and Intel. They are valuable because they provide clarity, focus, and alignment throughout the organization. Here’s how to set them effectively:

Set Ambitious Objectives: Objectives should be clear, inspiring, and ambitious. They should stretch employees to achieve their full potential while also aligning with the organization’s strategic priorities. For example, an objective could be to “Increase customer satisfaction by 20% within the next quarter.”

Define Measurable Key Results: Key Results are specific, measurable outcomes that indicate progress toward the objective. They should be quantifiable and achievable within a set timeframe. For instance, key results for the above objective could include “Reduce average response time to customer inquiries by 50%” or “Achieve a Net Promoter Score of 9 or higher.”

Anatomy of an OKR

Let’s consider an example of an OKR for your marketing team

Objective : Increase Brand Visibility and Recognition

Key Results:

  • Achieve a 30% increase in website traffic from organic search within the next quarter.
  • Increase social media engagement by 25% measured through likes, shares, and comments.
  • Secure coverage in at least five prominent industry publications or websites.

If you are new to OKRs, we understand it can seem daunting. To make it easier for you, we have curated a list of 70+ OKR examples that you can easily use for your organization.

Step 4: Designing Performance Reviews

Performance reviews, the next step in the performance management planning process, are a critical component of the employee performance management process, providing an opportunity for managers and employees to assess progress, provide constructive feedback, and set goals for the future. Here are key aspects to consider:

Frequency and format: Determine the frequency of performance management cycle based on your chosen process, complemented by regular informal feedback sessions. At Peoplebox, we recommend having weekly check-ins and one-on-ones in addition to monthly, quarterly, and annual performance reviews for an effective performance management plan.

Peoplebox lets you schedule and conduct dedicated one-on-one meetings for in-depth discussions and personalized goal setting.

One-on-one meetings in Peoplebox

Best practices for conducting one-on-one meetings:

  • Set an agenda in advance: Ensure both parties know what topics will be discussed, allowing for preparation and a focused conversation.
  • Create a safe and open environment: Encourage honest communication and active listening to foster open dialogue and feedback exchange.
  • Focus on solutions, not just problems: While addressing challenges, emphasize collaboration on solutions and actionable steps for improvement.
  • Follow up with notes and action items: Document key points discussed, decisions made, and next steps to ensure accountability and progress tracking.

Continuous feedback : Foster a culture of ongoing feedback through one-on-one meetings, project check-ins, or anonymous feedback tools . Timely and specific feedback allows for course correction and continuous improvement.

Conducting effective meetings : Coach managers with essential skills for conducting performance appraisals. If your organization is new to a streamlined performance management process, you can check out our blog post on performance management training for a comprehensive understanding of the process.

Here are some more tips to ace performance reviews in your organization:

Set Clear Expectations : Clearly communicate performance expectations, ensuring alignment with organizational goals.

Frequent Check-Ins: Conduct regular, informal check-ins to provide timely feedback and address concerns promptly.

Acknowledge Achievements: Recognize and celebrate employee achievements to boost morale and motivation.

Balance Feedback: Offer a balanced approach by highlighting strengths and addressing areas of improvement .

Link to Development: Connect performance assessments with personalized development plans and growth opportunities.

Data-Driven Insights: Utilize data and performance metrics to support feedback, making evaluations more objective.

Provide Training for Managers : Train managers in effective feedback delivery, fostering a positive and constructive review process.

Step 5: Communicating and Engaging the Employees:

In performance management, clear communication and employee engagement are essential for building trust, fostering a sense of ownership, and ultimately achieving desired outcomes. Here’s how you can ensure effective communication and engagement throughout the process:

Transparency is key : Clearly communicate the purpose and benefits of performance management system to both employees and managers. This helps everyone understand their roles and responsibilities within the system.

Define expectations: Clearly outline performance expectations for each role. This includes outlining key responsibilities, desired skillsets, and desired behaviors. Utilize specific and measurable criteria to avoid ambiguity and ensure everyone is on the same page.

Open dialogue : Encourage open and honest two-way communication throughout the process. This allows employees to ask the right questions, share their perspectives, and provide feedback on the system itself.

Involve employees in goal setting: Encourage employees to participate in setting their own performance goals with guidance from their managers. This increases buy-in and fosters a sense of ownership towards achieving those goals.

With performance management platforms like Peoplebox, your employees can easily set measurable goals and make sure they are aligned with the organization’s goals.

Create ambitious goals with Peoplebox

Use Multiple Channels: Utilize various communication channels, such as team meetings, emails, and collaboration platforms. This ensures that information is disseminated effectively to cater to diverse communication preferences.

Run performance reviews on Slack with Peoplebox

Pro Tip: Recognize and reward outstanding performance to showcase the value of the performance management system and motivate employees to strive for excellence.

Step 6: Evaluating and Adapting the Plan:

While performance management is a continuous process, one of the most important steps is evaluating and adapting the performance management plan. It should be a living document, not a static one. Here’s how to ensure its effectiveness:

Regular evaluations: Conduct periodic reviews to assess the effectiveness of the performance management system. Gather feedback from employees and managers through surveys, focus groups, or one-on-one discussions.

Collect feedback : Utilize various methods to gather quantitative and qualitative data on the system’s effectiveness. This might include employee satisfaction surveys, analysis of performance metrics, or tracking improvement in key areas.

Make adjustments: Based on the gathered feedback and data, adapt the performance management plan to address identified issues and improve its effectiveness. This could involve adjusting the review process, revising metrics, or incorporating new technology solutions.

By following these steps and continuously adapting your approach, you can implement a performance management planning system that fosters growth, engagement, and success within your organization. Remember, effective performance management is an ongoing journey, not a destination. 

By investing in your people and creating a supportive environment for continuous learning and employee development, you can unlock the full potential of your team and drive your organization forward.

Use Peoplebox for Performance Management

Peoplebox offers a seamless approach to performance management, revolutionizing how organizations assess and enhance the performance of employees. From streamlined goal setting with OKRs to facilitating real-time feedback and coaching, Peoplebox empowers organizations to foster a culture of continuous improvement and drive business success. 

With its user-friendly interface, comprehensive features, and commitment to data-driven decision-making, Peoplebox stands out as the go-to solution for organizations looking to elevate their performance management practices and unlock the full potential of their workforce. 

Let us help you unlock your team’s potential. Contact us today !

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OPM IT Strategic Plan Goals and Objectives

The OPM IT Strategic Plan includes six OCIO aspirational strategic goals. Each is supported by and aligns with one or more of the eight OCIO Guiding Principles. These strategic goals, while distinct, are mutually reinforcing. Achieving strategic objectives in one strategic goal supports improvement in all six strategic goals.

OCIO used a comprehensive process to develop its FY 2023-2026 IT Strategic Plan. It started with customer insights gained through interviews with all OPM program offices, to align with and support OPM’s Strategic Plan. Those discussions revealed the need for:

  • More innovation and more collaboration on appropriate use of emerging technologies
  • Improvements and better visibility into service performance
  • Better communication from OCIO about its plans
  • More participation from OCIO customers in defining critical requirements

OCIO also gathered information from the Office of the Inspector General (OIG) and GAO recommendations, assessments conducted by independent organizations, including National Academy of Public Administration (NAPA), federal mandates, and industry standards. This plan also incorporates the use of industry best practices and standards for IT planning to enable OCIO to deliver IT effectively and efficiently to its customers.

The plan is structured on the Technology Business Management (TBM) value management framework. TBM defines the tools, processes, data, and people needed to manage the business of technology. Using TBM and other leading industry frameworks, OCIO developed aspirational strategic goals along with supporting strategic objectives that are the foundational changes required for OCIO to become a leading IT organization.

This Strategic Plan will guide OCIO’s actions over the next four fiscal years. As shown in Appendix C, each strategic goal and objective has tangible initiatives that OCIO will undertake for each fiscal year of the plan. Further, each strategic goal and objective will have annual internal performance measures. As appropriate, these will be included in OCIO executives’ and managers’ annual performance plans, motivating all OCIO leaders to accomplish various elements of this plan.

It starts with the OCIO workforce. Having the right staff, with the right skills and abilities, in the proper organizational structure, is the foundation for success, and it is Goal 1. The strategic goals of Enhance Customer Value (Goal 2) and Improve Customer Experience (Goal 3) focus OCIO on effectively and efficiently managing OPM’s IT, while supporting the business of OPM. Goal 4 defines OPM’s IT Modernization strategy, including procurement, development, and deployment of the appropriate IT solutions to meet OPM’s mission and business objectives.

IT is about innovation, and OPM strives to use the latest technologies and processes to deliver its mission (Goal 5). Finally, Cybersecurity (Goal 6) must be top of mind in everything OPM does. There can be no compromising OPM’s commitment to protecting sensitive federal personnel data and supporting systems.


More Like this

Kpi meaning + 27 examples of key performance indicators.

As your organization begins to sketch out what your strategic plan might look like, it’s likely to come to your attention that you’ll need to gain consensus around what your key performance indicators will be and how they will impact your organization. If you haven’t thought much about your KPIs yet, that’s okay. We can help!

We’ve compiled a complete guide that includes an overview of what makes a good KPI, the benefits of good key performance indicators, and a list of KPI examples [organized by department and industry] for your reference as you develop your organization’s strategic plan and goals.

KPIs video

Video Transcript – How to Write KPIs

Hi, my name is Erica Olsen. Today’s whiteboard video is on key performance indicators, or KPIs for short. These are those things that are associated with either goals or objectives, whatever you’re calling them, those elements of your plan that are the expressions of what you want to achieve by when those quantifiable outcome-based statements.

So KPI’s answer the quantifiable piece of your goals and objectives. They come in three different flavors. So we’ll talk about that in just a minute. But before we do, putting great measures together and making sure they work well for you, you need to have these four attributes. And before I talk about those four attributes, so I just want to say the reason they need to work well for you is because KPIs are the heartbeat of your performance management process. They tell you whether you’re making progress, and ultimately, we want to make progress against our strategy. So KPIs are the thing that do that for us. So you’re going to live with them a lot. So let’s make sure they’re really good.

Okay, so the four things you need to have in order to make sure your these measures work for you.

Our number one is your measure. So the measure is the verbal expression very simply, in words, what are we measuring, which is fairly straightforward. The tricky thing is, is we need to be as expressive as we possibly can with our measures. So number of new customers, that’s fine. There’s nothing wrong with that. But a little bit advanced or a little bit more expressive, would be number of new customers this year, or number of new customers for a certain product or a certain service. So what is it is it? Yeah, so it is, so be really clear. And when it comes to measuring it on a monthly basis, you’re gonna want to be as clear as possible. So number of new customers, let’s say this year,

Number two, is our target, or target is the numeric value that we want to achieve. So a couple of things that are important about this is, the target needs to be apples to apples with when the goal date is set, or the due date is set. So we want to achieve 1000 new customers by the end of the year. So the due date in the target works hand in hand. The other thing is the measure and the target need to work hand in hand. So it’s a number. So this is a number, this is a percentage, this is a percentage, you get the idea.

Third thing, we actually run a report on this data. So where is it coming from? Be clear about what the source is. Most organizations have all sorts of data sources, fragmented systems. So making sure you identify where this data is coming from will save you a lot of time.

And then frequency. So how often are you going to be reporting on this KPI, ideally, you’re running monthly strategy reviews to report on the progress of your plan, at least monthly, in which case we’d like to see monthly KPIs. So you got to be able to pull the data monthly in order to make that happen. That’s not always possible. But let’s try to get there. Certainly some organizations are weekly and others are daily, monthly is a good place to start. So frequency. Great.

So now we know the components that we need to have in place in order to have our KPIs. Here are some different types of KPIs that you might think about as you’re putting your plan together.

So there are just straight up raw numbers, I call these widget counting, there’s nothing wrong with widget counting, they don’t necessarily tell a story. And I’ll talk about how to make this tell a story in a minute. But this is just simply widget counting number of things.

The second thing is progress. So this is really often used, it’s great. We use this, which is expressed as percent complete percent complete of the goal, percent completed a project, whatever it might be, it’s a project type measure. It’s a good measure, if if you don’t have quantifiable measures, or you can’t get the data, and you just want to track the performance of the goal as it relates to action items being completed under it.

The third type of indicator is a Change Type Indicator, like percent increase in sales, making this better would be percent increase in sales compared to last year. And the idea is 22%. So you can see how that starts to be more expressive, and work with the target. So this serves to tell a little bit more of a story than this one does, right? And if you want to actually make your widget counting measures tell more of a story like this one does, you might change something like this to read percentage of new customers acquired compared to same time last year. So that’s an example.

Okay, so now we know what we have to have in place and kind of different types of measures to get our ideas flowing. Let’s talk about one thing that you might take your measure writing to the next level and that is think about the fact that there are leading and lagging measures so are leading and lagging indicators. So percent increase in sales or sales is a lagging indicator it occurred as an outcome. If you want to make sure that you’re on track ACC, you might have a KPI in place, which is telling us whether we’re going to hit that increase such as your pipeline, maybe number of leads, or the size of your pipeline. So we don’t want to over rotate on this necessarily, but we do want to make sure we have a combination of leading and lagging measures when we’re looking at our performance on a monthly basis.

So with that, that’s all we have for today. Hopefully you have what you need to write great KPIs for your organization. Happy strategizing. And don’t forget, subscribe to our channel.

What is a Key Performance Indicator KPI — KPI Definition

Key performance indicators, also called KPIs, are the elements of your organization’s plan that express the quantitative outcomes you seek and how you will measure success. In other words, they tell you what you want to achieve and by when, and are crucial for evaluating the success of an organization. They are the qualitative, quantifiable, outcome-based statements you’ll use to measure progress and determine if you’re on track to meet your goals or objectives. Good plans use 5-7 KPIs to manage and track their progress against goals.

What is a KPI?


KPI Meaning & Why do you need them?

Key performance indicators are intended to create a holistic picture of how your organization is performing against its intended targets, business goals, or objectives. A great key performance indicator should accomplish all the following:

  • Outline and measure your organization’s most important set of outputs.
  • Work as the heartbeat of your performance management process and confirm whether progress is being made against your strategy.
  • Represent the key elements of your strategic plan that express what you want to achieve by when.
  • Measure the quantifiable components of your goals and objectives.
  • Measure the most important leading and lagging measures in your organization.

The Five Elements of a KPI

These are the heartbeat of your performance management process and must work well! They tell you whether you’re making progress or how far you are from reaching your goals. Ultimately, you want to make progress against your strategy. You’ll live with these KPIs for at least the quarter (preferably the year), so make sure they’re valuable!

Great strategies track the progress of core elements of the plan. Each key performance indicator needs to include the following elements:

  • A Measure: Every KPI must have a measure. The best ones have more specific or expressive measures.
  • A Target: Every KPI needs to have a target that matches your measure and the period of your goal. These are generally a numeric values you’re seeking to achieve.
  • A Data Source: Each of these needs to have a clearly defined data source so there is no gray area in measuring and tracking each.
  • Reporting Frequency: Different measures may have different reporting needs, but a good rule to follow is to report on them at least monthly.
  • Owner: While this isn’t a mandatory aspect of your KPI statement, setting expectations of who will take care of tracking, reporting, and refining specific KPIs is helpful to your overall organizational plan.

Elements of a KPI

Indicators vs. Key Performance Indicators

An indicator is a general term that describes a business’s performance metrics.

There can be several types of indicators a company may track, but not all indicators are KPIs, especially if they don’t tie into an organization’s overall strategic plan or objectives, which is a MUST!

Key Performance Indicators

On the other hand, a key performance indicator is a very specific indicator that measures an organization’s progress toward a specific company-wide goal or objective. We typically recommend you narrow down the KPIs your organization tracks to no more than 7. When you track too many goals, it can get daunting and confusing.

Pro Tip : You should only track the best and most valuable indicators that tie to your organization’s long-term strategic goals and direction.

Benefits of Good Key Performance Indicators

What benefits do key performance indicators have on your strategic plan, and on your organization as a whole? A lot of benefits, actually! They are extremely important to the success of your strategic plan as they help you track progress of your goals. Implementing them correctly is critical to success.

  • Benefit #1: They provide clarity and focus to your strategic plan by measuring progress and aligning your team’s efforts to the organization’s objectives. They also show your measurable progress over time and create ways to track your organization’s continued improvement.
  • Benefit #2: Key performance indicators create a way to communicate a shared understanding of success. They give your team a shared understanding of what’s important to achieve your long-term vision and create a shared language to express your progress.
  • Benefit #3: They provide signposts and triggers to help you identify when to act. A good balance of leading and lagging key performance indicators allow you to see the early warning signs when things are going well, or when it’s time to act.

How to Develop KPIs

How to Develop KPIs

We’ve covered this extensively in our How to Identify Key Performance Indicators post. But, here’s a really quick recap:

Step 1: Identify Measures that Contribute Directly to Your Annual Organization-wide Objectives

Ensure you select measures that can be directly used to quantify your most important annual objectives.

Step 2: Evaluate the Quality of Your Core Performance Indicators

Select a balance of leading and lagging indicators (which we define later in the article) that are quantifiable and move your organization forward. Always ensure you have relevant KPIs. Having the right key performance indicators makes a world of difference!

Step 3: Assign Ownership

Every key performance indicator needs ownership! It’s just that simple.

Step 4: Monitor and Report with Consistency

Whatever you do, don’t just set and forget your goals. We see it occasionally that people will select measures and not track them, but what’s the point of that? Be consistent. We recommend selecting measures that can be reported upon at least monthly.

The 3 Common Types of KPIs to Reference as You Build Your Metrics

Key performance indicators answer the quantifiable piece of your goals and objectives . They come in three different flavors. Now that you know the components of great key performance indicators, here are some different ones that you might think about as you’re putting your plan together:

Broad Number Measures

The first type of KPI is what we like to call broad number measures. These are the ones that essentially count something. An example is counting the number of products sold or the number of visits to a webpage.

PRO TIP: There is nothing wrong with these, but they don’t tell a story. Great measures help you create a clear picture of what is going on in your organization. So, using only broad ones won’t help create a narrative.

Progress Measures

Progress key performance indicators are used to help measure the progress of outcomes . This is most commonly known as the “percent complete” KPI, which is helpful in measuring the progress of completing a goal or project. These are best when quantifiable outcomes are difficult to track, or you can’t get specific data.

PRO TIP: Progress KPIs are great, but your KPI stack needs to include some easily quantifiable measures. We recommend using a mixture of progress KPIs and other types that have clear targets and data sources.

Change Measures

The final type of KPI is a change indicator. These are used to measure the quantifiable change in a metric or measure. An example would be, “X% increase in sales.” It adds a change measure to a quantifiable target.

The more specific change measures are, the easier they are to understand. A better iteration of the example above would be “22% increase in sales over last year, which represents an xyz lift in net-new business.” More expressive measures are better.

PRO TIP: Change measures are good for helping create a clear narrative . It helps explain where you’re going instead of just a simple target.

Leading KPIs vs Lagging KPIs

Part of creating a holistic picture of your organization’s progress is looking at different types of measures, like a combination of leading and lagging indicators. Using a mixture of both allows you to monitor progress and early warning signs closely when your plan is under or over-performing (leading indicator) and you have a good hold on how that performance will impact your business down the road (lagging indicator). Here’s a deep dive on leading versus lagging indicators:

Leading Indicator

We often refer to these metrics as the measures that tell you how your business might/will perform in the future. They are the warning buoys you put out in the water to let you know when something is going well and when something isn’t.

For example, a leading KPI for an organization might be the cost to deliver a good/service. If the cost of labor increases, it will give you a leading indicator that you will see an impact on net profit or inventory cost.

Another example of a leading indicator might be how well your website is ranking or how well your advertising is performing. If your website is performing well, it might be a leading indicator that your sales team will have an increase in qualified leads and contracts signed.

Lagging Indicator

A lagging indicator refers to past developments and effects. This reflects the past outcomes of your measure. So, it lags behind the performance of your leading indicators.

An example of a lagging indicator is EBITA. It reflects your earnings for a past date. That lagging indicator may have been influenced by leading indicators like the cost of labor/materials.

Balancing Leading and Lagging Indicators

If you want to ensure that you’re on track, you might have a KPI in place telling you whether you will hit that increase, such as your lead pipeline. We don’t want to over-rotate on this, but as part of a holistic, agile plan, we recommend outlining 5-7 key performance metrics or indicators in your plan that show a mix of leading and lagging indicators. .

Having a mixture of both gives you both a look-back and a look-forward as you measure the success of your plan and business health. We also recommend identifying and committing to tracking and managing the same KPIs for about a year, with regular monthly or quarterly reporting cadence, to create consistency in data and reporting.

KPI Examples

27 KPI Examples

Sales key performance indicators.

  • Number of contracts signed per quarter
  • Dollar value for new contracts signed per period
  • Number of qualified leads per month
  • Number of engaged qualified leads in the sales funnel
  • Hours of resources spent on sales follow up
  • Average time for conversion

Increase the number of contracts signed by 10% each quarter.

  • Measure: Number of contracts signed per quarter
  • Target: Increase number of new contracts signed by 10% each quarter
  • Data Source: CRM system
  • Reporting Frequency: Weekly
  • *Owner: Sales Team
  • Due Date: Q1, Q2, Q3, Q4

Increase the value of new contracts by $300,000 per quarter this year.

  • Measure: Dollar value for new contracts signed per period
  • Data Source: Hubspot Sales Funnel
  • Reporting Frequency: Monthly
  • *Owner: VP of Sales

Increase the close rate to 30% from 20% by the end of the year.

  • Measure: Close rate – number of closed contracts/sales qualified leads
  • Target: Increase close rate from 20% to 30%
  • *Owner: Director of Sales
  • Due Date: December 31, 2023

Increase the number of weekly engaged qualified leads in the sales from 50 to 75 by the end of FY23.

  • Measure: Number of engaged qualified leads in sales funnel
  • Target: 50 to 75 by end of FY2023
  • Data Source: Marketing and Sales CRM
  • *Owner: Head of Sales

Decrease time to conversion from 60 to 45 days by Q3 2023.

  • Measure: Average time for conversion
  • Target: 60 days to 45 days
  • Due Date: Q3 2023

Increase number of closed contracts by 2 contracts/week in 2023.

  • Measure: Number of closed contracts
  • Target: Increase closed contracts a week from 4 to 6
  • Data Source: Sales Pipeline
  • *Owner: Sales and Marketing Team

Examples of KPIs for Financial

  • Growth in revenue
  • Net profit margin
  • Gross profit margin
  • Operational cash flow
  • Current accounts receivables

Financial KPIs as SMART Annual Goals

Grow top-line revenue by 10% by the end of 2023.

  • Measure: Revenue growth
  • Target: 10% growt
  • Data Source: Quickbooks
  • *Owner: Finance and Operations Team
  • Due Date: By the end 2023

Increase gross profit margin by 12% by the end of 2023.

  • Measure: Percentage growth of net profit margin
  • Target: 12% net profit margin increase
  • Data Source: Financial statements
  • *Owner: Accounting Department

Increase net profit margin from 32% to 40% by the end of 2023.

  • Measure: Gross profit margin in percentage
  • Target: Increase gross profit margin from 32% to 40% by the end of 2023
  • Data Source: CRM and Quickbooks
  • *Owner: CFO

Maintain $5M operating cash flow for FY2023.

  • Measure: Dollar amount of operational cash flow
  • Target: $5M average
  • Data Source: P&L
  • Due Date: By the end FY2023

Collect 95% of account receivables within 60 days in 2023.

  • Measure: Accounts collected within 60 days
  • Target: 95% in 2023
  • Data Source: Finance
  • Due Date: End of 2023

Examples of KPIs for Customers

  • Number of customers retained
  • Percentage of market share
  • Net promotor score
  • Average ticket/support resolution time

Customer KPIs as SMART Annual Goals

90% of current customer monthly subscriptions during FY2023.

  • Measure: Number of customers retained
  • Target: Retain 90% percent of monthly subscription customers in FY2023
  • Data Source: CRM software
  • *Owner: Director of Client Operations

Increase market share by 5% by the end of 2023.

  • Measure: Percentage of market share
  • Target: Increase market share from 25%-30% by the end of 2023
  • Data Source: Market research reports
  • Reporting Frequency: Quarterly
  • *Owner: Head of Marketing

Increase NPS score by 9 points in 2023.

  • Measure: Net Promoter Score
  • Target: Achieve a 9-point NPS increase over FY2023
  • Data Source: Customer surveys
  • *Owner: COO

Achieve a weekly ticket close rate of 85% by the end of FY2023.

  • Measure: Average ticket/support resolution time
  • Target: Achieve a weekly ticket close rate of 85%
  • Data Source: Customer support data
  • *Owner: Customer Support Team

Examples of KPIs for Operations

  • Order fulfillment time
  • Time to market
  • Employee satisfaction rating
  • Employee churn rate
  • Inventory turnover

Operational KPIs as SMART Annual Goals

Average 3 days maximum order fill time by the end of Q3 2023.

  • Measure: Order fulfilment time
  • Target: Average maximum of 3 days
  • Data Source: Order management software
  • *Owner: Shipping Manager

Achieve an average SaaS project time-to-market of 4 weeks per feature in 2023.

  • Measure: Average time to market
  • Target: 4 weeks per feature
  • Data Source: Product development and launch data
  • *Owner: Product Development Team

Earn a minimum score of 80% employee satisfaction survey over the next year.

  • Measure: Employee satisfaction rating
  • Target: Earn a minimum score of 80% employee
  • Data Source: Employee satisfaction survey and feedback

Maintain a maximum of 10% employee churn rate over the next year.

  • Measure: Employee churn rate
  • Target: Maintain a maximum of 10% employee churn rate over the next year
  • Data Source: Human resources and payroll data
  • *Owner: Human Resources

Achieve a minimum ratio of 5-6 inventory turnover in 2023.

  • Measure: Inventory turnover ratio
  • Target: Minimum ratio of 5-6
  • Data Source: Inventory management software
  • *Owner: perations Department

Marketing Key Performance

  • Monthly website traffic
  • Number of marketing qualified leads
  • Conversion rate for call-to-action content
  • Keywords in top 10 search engine results
  • Blog articles published this month
  • E-Books published this month

Marketing KPIs as SMART Annual Goals

Achieve a minimum of 10% increase in monthly website traffic over the next year.

  • Measure: Monthly website traffic
  • Target: 10% increase in monthly website
  • Data Source: Google analytics
  • *Owner: Marketing Manager

Generate a minimum of 200 qualified leads per month in 2023.

  • Measure: Number of marketing qualified leads
  • Target: 200 qualified leads per month
  • Data Source: Hubspot

Achieve a minimum of 10% conversion rate for on-page CTAs by end of Q3 2023.

  • Measure: Conversion rate on service pages
  • Target: 10%
  • Due Date: End of Q3, 2023

Achieve a minimum of 20 high-intent keywords in the top 10 search engine results over the next year.

  • Measure: Keywords in top 10 search engine results
  • Target: 20 keywords
  • Data Source: SEM Rush data
  • *Owner: SEO Manager

Publish a minimum of 4 blog articles per month to earn new leads in 2023.

  • Measure: Blog articles
  • Target: 4 per month
  • Data Source: CMS
  • *Owner: Content Marketing Manager
  • Due Date: December 2023

Publish at least 2 e-books per quarter in 2023 to create new marketing-qualified leads.

  • Measure: E-Books published
  • Target: 2 per quarter
  • Data Source: Content management system

Bonus: +40 Extra KPI Examples

Supply chain example key performance indicators.

  • Number of On-Time Deliveries
  • Inventory Carry Rate
  • Months of Supply on Hand
  • Inventory-to-Sales Ratio (ISR)
  • Carrying Cost of Inventory
  • Inventory Turnover Rate
  • Perfect Order Rate
  • Inventory Accuracy

Healthcare Example Key Performance Indicators

  • Bed or Room Turnover
  • Average Patient Wait Time
  • Average Treatment Charge
  • Average Insurance Claim Cost
  • Medical Error Rate
  • Patient-to-Staff Ratio
  • Medication Errors
  • Average Emergency Room Wait Times
  • Average Insurance Processing Time
  • Billing Code Error Rates
  • Average Hospital Stay
  • Patient Satisfaction Rate

Human Resource Example Key Performance Indicators

  • Organization Headcount
  • Average Number of Job Vacancies
  • Applications Received Per Job Vacancy
  • Job Offer Acceptance Rate
  • Cost Per New Hire
  • Average Salary
  • Average Employee Satisfaction
  • Employee Turnover Rate
  • New Hire Training Effectiveness

Social Media Example Key Performance Indicators

  • Average Engagement
  • % Growth in Following
  • Traffic Conversions
  • Social Interactions
  • Website Traffic from Social Media
  • Number of Post Shares
  • Social Visitor Conversion Rates
  • Issues Resolved Using Social Channel

Conclusion: Keeping a Pulse on Your Plan

With the foundational knowledge of the KPI anatomy and a few example starting points, it’s important you build out these metrics with detailed and specific data sources so you can truly evaluate if you’re achieving your goals. Remember, these will be the 5-7 core metrics you’ll live by for the next 12 months, so it’s crucial to develop effective KPIs that follow the SMART formula.

A combination of leading and lagging KPIs will paint a clear picture of your organization’s strategic performance and empower you to make agile decisions to impact your team’s success. KPI software allows your business to monitor and analyze performance trends over time by centralizing your data and using relevant data points and calculations. If you’d like more information on building better ones, check out the video above and click here to see why not all KPIs are created equal.

Our Other KPI Resources

We have several other great resources to consider as you build your organization’s Key Performance Indicators! Check out these other helpful posts and guides:

  • OKRs vs. KPIs: A Downloadable Guide to Explain the Difference
  • How to Identify KPIs in 4 Steps
  • KPIs vs Metrics: Tips and Tricks to Performance Measures
  • Guide to Establishing Weekly Health Metrics

FAQs on Key Performance Indicators

KPI stands for Key Performance Indicators. KPIs are the elements of your organization’s business or strategic plan that express what outcomes you are seeking and how you will measure their success. They express what you need to achieve by when. KPIs are always quantifiable, outcome-based statements to measure if you’re on track to meet your goals and objectives.

The 4 elements of key performance indicators are:

  • A Measure – The best KPIs have more expressive measures.
  • A Target – Every KPI needs to have a target that matches your measure and the time period of your goal.
  • A Data Source – Every KPI needs to have a clearly defined data source.
  • Reporting Frequency – A defined reporting frequency.

No, KPIs (Key Performance Indicators) are different from metrics. Metrics are quantitative measurements used to track and analyze various aspects of business performance, while KPIs are specific metrics chosen as indicators of success in achieving strategic goals.


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HI Erica hope your are doing well, Sometime Strategy doesn’t cover all the activities through the company, like maintenance for example may be quality control …. sure they have a contribution in the overall goals achievement but there is no specific new requirement for them unless doing their job, do u think its better to develop a specific KPIs for these department? waiting your recommendation

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Thanks for your strategic KPIs

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Hello Erica, Could you please clarify how to set KPIs for the Strategic Planning team?

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Hi Diana, check out the whitepaper above for more insight!

Hello Erica, Could you please clarify, how to set the KPIs for the Strategic PLanning team?

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exampels of empowerment kpis

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I found great information in this article. In any case, the characteristics that KPIs must have are: measurability, effectiveness, relevance, utility and feasibility

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How to write methodology guidelines for strategy implementation / a company’s review and tracking (process and workflow) for all a company’s divisions

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support on strategizing Learning & Development for Automobile dealership

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Could you please to clarify how to write the KPIs for the Secretary.

Check out our guide to creating KPIs for more help here:

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That’s an amazing article.

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Could you please to clarify how to write the KPIs for the office boy supervisor

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Could you please clarify how to write KPIs for the editorial assistant in a start up publishing company.

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Kindly advice how I would set a kpi for a mattress factory

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More From Forbes

The cto and scale: leadership in integration and performance management.

Forbes Technology Council

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Tony Allen, Chief Technology Officer at Recurly .

In today’s fast-paced and fiercely competitive digital economy, businesses that leverage subscription models face a unique set of challenges and opportunities. Among these, scalability and customer retention are critical elements that can make or break a subscription service's success.

A robust subscription and billing management platform is crucial for businesses aiming to adapt and thrive. According to Zipdo , "Subscription businesses grew revenues about 5 times faster than S&P 500 company revenues." This level of growth, however, needs a scalable infrastructure capable of handling increasing volumes of transactions without compromising performance or customer experience.

The Importance Of Scalability And Retention

The subscription industry is booming, with businesses across various industries adopting recurring revenue models. According to a report by McKinsey , subscription businesses have been growing at an annual rate of 300% from 2012 to 2018. This trend underscores the criticality of scalability in subscription and billing management services. As subscriber numbers surge, systems must be capable of handling increasing volumes of transactions seamlessly. Any shortcomings in scalability can lead to downtime, revenue loss and, ultimately, customer churn.

Retention is equally paramount. Studies have shown that acquiring a new customer can cost up to five times more than retaining an existing one. Therefore, ensuring a frictionless experience for current subscribers is vital for sustaining long-term profitability and growth.

Best High-Yield Savings Accounts Of 2024

Best 5% interest savings accounts of 2024, why cto leadership in integration is essential.

Integration lies at the heart of scalability. Whether it's incorporating new features, onboarding clients swiftly or adapting to evolving market demands, seamless integration is indispensable. As the custodians of technology within organizations, CTOs possess a unique blend of technical expertise and strategic vision. They understand the intricacies of the product inside out and are best positioned to navigate the complexities of integration while aligning it with the company's broader objectives.

For instance, let's consider a subscription-based meal delivery service. The CTO's leadership in integration is crucial when the company decides to integrate its platform with various dietary tracking apps and wearable devices. By seamlessly syncing data between the meal delivery service and these external platforms, subscribers can effortlessly track their nutritional intake and health goals, enhancing their overall experience and loyalty to the service.

This approach to integration should be guided by a deep understanding of the platform's architecture and the nuances of subscription billing. By taking a hands-on approach to integration, CTOs can ensure that the system's scalability is not just a reactive measure, but also a proactive strategy woven into the product's development roadmap.

Managing Performance

Maintaining optimal response times and performance is paramount, especially in the realm of subscription billing, where even minor delays can have significant ramifications.

Here are some best practices to follow:

• Continuous Monitoring And Optimization: Implement robust monitoring tools to track system performance in real time. Proactively identify bottlenecks and optimize codebase and infrastructure to ensure optimal performance. As an example, especially for services like streaming platforms that offer live coverage of high-demand events, by continuously monitoring server load, network latency and other key metrics during the event, the service can quickly detect any performance issues and take immediate action to address them, ensuring that subscribers enjoy a seamless viewing experience without interruptions or delays.

• Scalable Architecture Design: Design systems with scalability in mind from the outset. Employ distributed architectures, microservices, and cloud-based solutions to handle increasing workloads gracefully.

• Load Testing And Capacity Planning: Conduct rigorous load testing to simulate high-traffic scenarios and validate system performance under stress. Use insights from load testing to inform capacity planning and scale infrastructure accordingly. Let's continue with the hypothetical scenario of a subscription-based streaming platform preparing for a high-demand event. By conducting rigorous load testing, the platform can simulate thousands of concurrent users accessing the streaming platform simultaneously to ensure that the infrastructure can handle the expected surge in traffic without experiencing performance degradation or downtime. Insights gained from load testing are then used to inform capacity planning decisions, such as scaling up server capacity or provisioning additional resources to accommodate the increased demand during peak periods.

• Incremental Rollouts And A/B Testing: Adopt a phased approach to rolling out new features and updates. Conduct A/B testing to assess the impact on performance and user experience before full deployment. If you're planning to introduce a new feature, instead of releasing it to all users at once, adopt an incremental rollout strategy. Initially, release the feature to a small subset of users and closely monitor its performance and user feedback. Through A/B testing, compare the experience of users with and without the new feature enabled to assess its impact on performance and user satisfaction. Based on the insights gathered from A/B testing, you can make informed decisions about whether to proceed with full deployment, iterate on the feature, or roll it back if necessary. This approach will allow for mitigating potential risks associated with introducing new features while ensuring a positive user experience for subscribers.

Scalability and performance are not just technical considerations; they're also strategic imperatives for subscription and billing management services. By placing CTOs at the helm of integration efforts and following best practices for performance management, organizations can future-proof their platforms, drive customer retention and unlock new avenues for growth in the dynamic subscription industry.

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Tony Allen

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IT Business Management becomes Strategic Portfolio Management

Strategic Portfolio Management: woman working on laptop

In today’s enterprise, technology is quickly extending beyond its birthplace in IT. Solutions that found traction with IT technologists are now helping connect everyone and everything at a company. At ServiceNow, it starts with our customers.

Customers have been using ServiceNow® IT Workflows products in traditionally non-technology functions. Where these shifts became thematic, we listened and evolved our capabilities to serve those teams. For years, customers have been using our industry-leading IT Business Management (ITBM) products outside of IT. We’ve collaborated with them to ensure our products meet their needs.

To better reflect our focus on enabling all organizations to plan, deliver, and track business outcomes across different systems, our ITBM products will now be called Strategic Portfolio Management (SPM).

Connecting strategy and delivery

In this era of constant change, what leading organizations have in common is agility. Agile organizations are better able to thrive in complex environments because they’ve developed the ability to spot business opportunities and threats early and to implement change quickly.

ServiceNow Strategic Portfolio Management can enable your business to move with agility, making the right decisions quickly and confidently to drive customer value faster. The product provides continuous, collaborative, and contextual alignment across every level of your organization.

The unified data model and integrated digital workflows of the Now Platform® can deliver the insight you need to connect strategy, delivery, and business outcomes in a constantly changing world. With ServiceNow SPM, you can ensure all stakeholders and investments are aligned to customer value, no matter what approaches your teams use to deliver work. You can also plan, adapt, and communicate your strategy and track performance in real time.

Toward agile business

“ServiceNow’s shift to Strategic Portfolio Management as part of its go-to-market strategy is timely given urgent SPM demand with the challenges of hybrid work, increased complexity, and highly constrained resources,” says Melinda Ballou, research director for IDC’s agile application lifecycle management, quality, and portfolio strategies.

“IDC sees SPM generally as a framework to help manage, prioritize, and optimize agile business and technology initiatives and innovation. Coupling process and organizational strategies with automation can enable systemic adoption and must be part of execution. IDC research indicates increasing adoption of agile metrics for businesses, which SPM can also enable.”

Find out more about the benefits of Strategic Portfolio Management for your business.

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The Department of Defense Releases the Updated Strategic Management Plan for Fiscal Years 2022 - 2026

Deputy Secretary of Defense Kathleen H. Hicks has approved the updated Fiscal Years 2022 – 2026 DoD Strategic Management Plan.

The SMP serves as the Department of Defense's strategic framework to manage strategic priorities and goals in support of the 2022 National Defense Strategy. It focuses on building enduring advantages and addressing institutional management priorities by using data-analytics to enhance oversight and reform efforts. Additionally, the SMP meets the statutory requirements pursuant the Government Performance and Results Act Modernization Act of 2010 and is published every year with the objective of articulating near-term progress on SMP implementation along with the long-term objectives the department plans to accomplish.

The SMP preparation is led by the department's Performance Improvement Officer and is developed through collaborative coordinated partnerships with the DOD components. The published SMP is reviewed as part of the annual fiscal budget process to ensure it remains aligned with achieving the strategic goals of the President's budget, the NDS, and the Secretary of Defense's priorities. For the first time, the FY2025 update to the SMP incorporates outcome-driven performance goals and measures for Military Departments to ensure that the SMP strategic framework accurately represents the work executed by the MILDEP in contribution to strategic priorities and objectives. 

The SMP includes the Annual Performance Plan and Annual Performance Report. The FY2025 APP reflects the SMP's longer-term planning outlook by linking its strategic goals and objectives to operational performance goals, measures, and targets for the upcoming fiscal year. The FY2023 APR consolidates prior year performance results across all DOD components and communicates overall implementation progress against the SMP.

The SMP strategic priorities and objectives – together with the performance goals, measures, and targets – showcase how the department intends to achieve its goals and priorities and succeed through teamwork across the defense enterprise. The FY2025 SMP focuses on five strategic priorities:

  • Take Care of Our People and Cultivate the Workforce We Need
  • Transform the Foundation of the Future Force
  • Make the Right Technology Investments
  • Strengthen Resilience and Adaptability of Our Defense Ecosystem
  • Address Institutional Management Priorities

The full SMP is published online on the Performance Improvement Officer/Director of Administration and Management's performance website: .

You can also find it on here .

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NetSuite Introduces Enterprise Performance Management to Help Businesses in EMEA Increase Productivity, Profitability, and Efficiency

New unified finance solution connects financial and operational planning, automates account reconciliation, streamlines the close process, and supports local tax reporting standards


Oracle NetSuite  today announced that  NetSuite Enterprise Performance Management (EPM) , which includes  NetSuite Planning and Budgeting  and  NetSuite Account Reconciliation , will be available in Europe, the Middle East, and Africa (EMEA). With NetSuite EPM, businesses in EMEA can increase visibility, enhance decision-making, and drive growth by bringing together planning, budgeting, forecasting, account reconciliation, financial close, and reporting processes from across the entire organisation.

“Finance teams that rely on manual, disconnected processes take too much time fixing spreadsheets and being reactive, instead of driving the business forward,” said Evan Goldberg, founder and EVP, Oracle NetSuite. “By automating critical financial processes – from planning and budgeting to closing the books and reporting – NetSuite EPM creates new efficiencies and helps uncover and highlight patterns to put the focus back on proactivity, profitability, and growth.”

NetSuite EPM is built on the foundation of Oracle Fusion Cloud Enterprise Performance Management (EPM) and seamlessly integrated into NetSuite, helping organisations improve the speed and accuracy of financial processes and gain the business insights they need to enhance decision-making. NetSuite EPM is composed of NetSuite solutions that are now available in EMEA, including:

  • Planning and Budgeting:  Automates labour-intensive planning and budgeting processes, so finance teams can quickly and easily budget and forecast, scenario plan, and report — all within one collaborative, scalable solution. With this new solution, finance leaders can improve and accelerate decision-making by using predictive AI-powered algorithms to continually monitor and analyse plans, forecasts, and variances. The AI capabilities also help finance leaders uncover and highlight trends, anomalies, and correlations. In addition, NetSuite Planning and Budgeting can now be configured to deliver sustainability reporting. This helps business leaders comply with new reporting standards and gain the insights they need to make progress on sustainability goals by connecting data, plans, and targets across their organisation.
  • Account Reconciliation:  Streamlines and automates the reconciliation process for accounts payable, accounts receivable, bank and credit card transactions, prepaid accounts, accruals and fixed asset accounts, intercompany transactions, and other balance sheet accounts. With this new solution, accounting teams can increase the accuracy and speed of the entire close process by automating the complex and time-consuming tasks involved in aggregating financial data from various sources. The solution helps standardise and automate any reconciliation processes, strengthen internal financial controls, produce more accurate financial statements, and close the books faster.
  • Profitability and Cost Management:  Provides a deeper understanding of which customers, products, and other segments of a business are performing profitably. With this new solution, finance leaders can make more informed decisions about where to take their business and allocate resources more effectively with a deeper understanding of profitability.
  • Narrative Reporting:  Helps contextualise financial data by aligning narrative writing with financial statements and data in a single report. With this new solution, finance teams can easily collaborate in a central space to define, author, review, and publish management and regulatory reports.
  • Corporate Tax Reporting:  Simplifies and automates tax reporting processes and enables organisations with multinational operations to efficiently comply with new OECD country-by-country reporting obligations. With this new range of workflow, task management, and transfer pricing capabilities, finance teams can improve the speed and accuracy of tax reporting.

Customer Success with NetSuite Planning and Budgeting and NetSuite Account Reconciliation

Veracyte  is a global diagnostics company with operations in France and Israel that empowers clinicians with the high-value insights they need to guide patients at pivotal moments in the race to diagnose and treat cancer. To plan for multiple scenarios and make more informed business decisions based on real-time data and accurate forecasts, Veracyte is leveraging NetSuite Planning and Budgeting.

“With NetSuite Planning and Budgeting, we’ve been able to effectively manage our financial planning and forecasting processes,” said Cassandra Cardenas, Financial Systems Senior Manager, Veracyte. “The ability to run rolling forecasts has helped us stay on top of our financial performance by allowing us to quickly adapt to unexpected changes to our business. With a heightened demand and growing workforce, NetSuite Planning and Budgeting has been key to ensuring we can continue to deliver our services to those who need them most.”

Based in Ireland, Keywords Studios provides creative services to the global video games industry and has more than 13,000 team members in 26 countries. To help increase operational efficiencies and scale its business, Keywords Studios selected NetSuite Account Reconciliation.

“Keywords Studios, with its global footprint and diverse service offerings in the gaming and tech industries, selected NetSuite Account Reconciliation for its ability to streamline complex financial processes across multiple currencies and regulatory environments,” said Marc Quinlan, Director of Finance Transformation, Keywords Studios. “We chose NetSuite to enhance automation and real-time data visibility, helping to significantly reduce manual errors and boost operational efficiency. NetSuite Account Reconciliation ensures compliance by adhering to international regulatory obligations and simplifies the reconciliation process, enabling Keywords Studios to focus on operational excellence and strategic expansion without compromising on financial accuracy and control.”

Availability:  NetSuite Enterprise Performance Management will be available in Belgium, Denmark, Finland, France, Germany, Ireland, Israel, Netherlands, Norway, Spain, Sweden, Central and Eastern Europe, and Africa in 2024.

Contact Info

About Oracle NetSuite

For more than 25 years, Oracle NetSuite has helped organisations grow, scale, and adapt to change. NetSuite provides an integrated system that includes financials / Enterprise Resource Planning (ERP), inventory management, HR, professional services automation and omnichannel commerce, used by more than 37,000 customers in  219 countries and dependent territories.

Oracle, Java, MySQL and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.

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  • Fujitsu and Oracle Collaborate to Deliver Sovereign Cloud and AI Capabilities in Japan Apr 18, 2024
  • Oracle to Invest More Than $8 Billion in Cloud Computing and AI in Japan Apr 17, 2024
  • NetSuite Introduces Enterprise Performance Management to Help Businesses in EMEA Increase Productivity, Profitability, and Efficiency Apr 17, 2024
  • Bloom & Wild Turns to NetSuite to Drive Budding Growth Apr 17, 2024
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