Performance Management System

Would you drive a car without a dashboard? Absolutely not right? 

Before I get in to the details of Performance Management System. Let me take an example of  a car to drive home the point.

Car is a good example of having indicators / warnings both lead and lag indicators. Rather car has lot of lead indicators.

• Visual and audible warnings when fuel is low
• Warning indicators covering all directions
• Service due indicator
• Speed limit indicator and lot more..  

All the above said and unsaid indicators are critical for driving car safely.
When we have so many indicators for a car, can anyone imagine running an organization without any indicator. Disaster isn’t it?
As a Six Sigma practitioner I can’t think of any process where you don’t have a measure.  Afterall what gets measured gets improved.
Performance management using Key Performance Indicators is critical for any organization not only to move forward but also in the right direction.

The following are the reasons for the above scenario:

• Poorly understood kpis
• Isolated / islands of departments and their priorities
• No strategic direction
• Improper drill down of organizational strategy
• Lack of communication of organizational strategy
• Lack of top management involvement in setting the organizational strategy and drill down

I will cover the following in my next post:

• What is meant by KPI
• Lead and Lag indicators
• Pitfalls of Goal / KPIs setting
• Few industries specific example of Goal deployment – a case study