What is the value of a performance management model? The global provider of market intelligence IDC has visited a number of organizations around the world to evaluate the value of the decision information provided to decision makers. IDC concludes, that a Danish company is in top position. The Danish company has realized a Return On Investment (ROI) on implementing their performance management model of 889%. The high realized ROI on performance management / business intelligence in the Danish company outperforms a long range of other investments in all types of organizations, that often struggle with even realizing a positive ROI.
The background for the exceptional success is a clear commitment throughout the company to making the performance management model operational by involving all employees in executing the business strategy. Break-down of the business strategy into performance points, that the individual groups of employees can directly influence and measure on a day-to-day basis, is instrumental in creating a world-class performance management model.
Why not learn from the Danish company with a world-class performance management model? The Danish company has on numerous occasions shared their insight on how to ensure success for performance management and business intelligence.
Unfortunately the reaction from employees in other organizations have typically been to argue, why the positive experiences cannot be transferred to their organization, even though all organizations should have a strong focus on how to convert strategy into improved day-to-day decision making throughout the organization. It has even been publically argued, that the public sector cannot learn from the world-class Danish company, since it is operating in the private sector.
In sports the focus on world-class has not deteriorated, so why call off the search for world-class in the performance of organizations?
Our experience in working with locally operating as well as global organizations is that choosing an ambition level of world-class performance management significantly increases the probability of success compared with deciding to cut down on activities and costs across the board without transparently involving all employees in the change of business strategy.
World-class performance can be achieved by making decision information linked to business strategy directly available for the operational decisions taken every day by employees throughout the organization.
In this way the organization can achieve world-class performance management, and why say no to this?