Even though most organizations have a role or performance-based evaluation system in place, many systems overlook the wider perspective for the overall health and growth of an organization. For instance, every employee has a role to play not only towards the growth and profitability of his or her unit but also towards the organization as a whole. Again, an organization needs to be aware of the environmental conditions and how changes need to be taken up accordingly in response to changing market conditions. Responding to the needs of customers needs to be measured as well as customer is the primary driving force in the competitive market of today.
Taking the comprehensive approach
For these reasons, a strategic performance management approach is to establish forum key areas for performance to be judged of an organization which in turn cascades down to departments and then to the roles and members of every department. An overall dashboard balanced scorecard matrix is developed with four main areas of assessment encompassing:
• Financial parameters.
• Business processes.
• Knowledge management.
• Customer perspective.
Deriving performance systems for different roles
With these broad areas, every performance sheet for every role is defined accordingly. The dashboard balanced scorecard for a financial head of an organization would include the profits and losses made by the organization part of his financial objectives while the contributions made to improving the way of working of the finance department, how shareholders have been provided clear and transparent statements and training given to team members and conferences attended would comprise the comprehensive appraisal system for this role, get more information.
Flow of responsibilities
With a comprehensive performance assessment tool, there is a smooth breakdown of the larger responsibilities of a departmental head to smaller responsibilities of the different roles in a department. While a finance head needs to ensure that the balance sheet is maintained properly, accounting of the same would be part of the finance officer’s role who reports to the head. The cumulative scores of the reportees usually translate into an overall score for the departmental head.
Finding custom system for an organization
Even if the same performance management system is adopted by every organization, as no two organizations function in the same way, with same financial objectives, in the same market segment as well as with the same set of customers, an effective system for monitoring performance is one where the system takes in inputs that are specific to an organization and captures its business purposes well. Nowadays, many vendors offer performance management systems that can be customized and made applicable for every organization. It is easy to review and order in these systems online.