Performance management is a methodology that is part of business management. It is based on the definition of performance indicators (KPIs – Key Performance Indicators), to measure the efficiency of internal processes, being essential to identify errors, delays or failures, assisting strategic planning and decision making. Consequently, it promotes improvement in results and facilitates the achievement of the objectives set.
Most companies that stand out in the market have a common characteristic: investment in the improvement and optimization of operational activities. And that, comes linked to the development of a performance management efficient, which ensures the best possible results and keeps the motivated employees.
Here in this article, we will explain what it is and what are the benefits of a well-executed performance management. We will also detail which are the performance indicators and how they influence the results of high performance management in your company. And, finally, we will detail in a step-by-step how to implement this strategy in your company! Good reading!
The concept of performance management
THE performance management is a methodology that aims to measure performance and the achievement of goals for each sector, focusing on each company’s own objectives.
It is linked to business management and is based on the definition of performance indicators, to assess and measure the quality of processes and the efficiency of employees, with the aim of improving their efficiency.
Also called KPI (Key Performance Indicators), these indicators are fundamental to identify errors in processes, assisting strategic planning and decision-making and improving employee performance.
The high performance culture encourages the constant search for better and better results, with a focus on strategy, commitment and leadership. Therefore, with this methodology, it is possible to:
Performance indicators: improved results
Performance indicators they are strategic points of performance evaluation for each process of an organization. The appropriate choice of these indicators is essential to optimize the performance of the company’s sectors and make the results more satisfactory.
Making an analogy, it is as if you traced a route to your destination by car, but along the route you used indicators, such as the traffic condition and possible shortcuts, for example, to assess whether that route is really the most suitable. If not, these parameters will make you change the route to get there faster, with more quality and less resources.
That is, these iIndicators are the right arm of performance management, because its constant analysis allows to change processes, correcting the flaws in order to obtain better results and reach the objective more quickly.
6 steps to implement performance management
Now that you understand the concept and the performance management benefits, we can move on to the practical part. See below, a step by step to implement this strategy in your business and have better returns in your company.
1. Define the objectives
This should be the first step of any initiative or project that you want to start, because if something does not contribute to improving the results, it is a waste of time and resources.
And in the case of performance management, this analysis is even more important, as the ultimate goal is to improve performance, facilitating the achievement of the company’s goals and objectives.
Therefore, all actions must be well aligned with the results to be achieved and with the strategic planning carried out.
2. Choose the processes that add the most value to the business
Performing performance management is a very complex process that requires a good planning, time and resources.
Exactly for this reason, it is not necessary to encompass all business processes, embracing the world with your hands, right away. This, in addition to being unproductive, is very risky and can cause unproductive performance management.
Therefore, it is recommended to choose only a few primary processes and start with them.
As the team improves itself in performance management and making sure of the results, it is possible to choose a few more processes to include in the performance management program.
In this way, all the important processes for the company are included in this planning, but without compromising quality, efficiency and productivity of management.
3. Conduct leadership training
A high-performance culture requires a well-qualified team. Therefore, it is essential to invest in courses and training practical ways to improve employee performance.
And when we talk about practice, we are referring to training that involves the active participation of employees, leaving the model of expository classes with little interaction.
Practical skills development generates much more results than just discussing theoretical aspects.
In addition to qualification, training is required to keep the team committed and well aligned with the company’s objectives.
This type of environment increases productivity, making it easier to achieve and achieve excellence in the quality of products and services provided, improving financial results.
4. Establish performance indicators
These indicators will be the basis of your evaluation and performance measurement, therefore, they must be very well aligned with the company’s proposal and objectives.
It is important to consider some important criteria, such as:
Relevance: the measured variable should considerably affect the process and its results;
Easy to understand: it is essential that the employee understands the need to evaluate such a performance indicator. Otherwise, the measurement will be made quickly, without proper care and accuracy.
Easy measurement: the analysis of the indicators must be simple and direct, avoiding disinterest on the part of those involved;
Quantifiable in numbers: it would be ideal to make to make the performance comparison more practical.
5. Automate processes
Do the automation of processes it goes far beyond making manual tasks automatic. It is necessary to ensure easy collection and access to information and data on the processes for ensure the analysis of performance indicators.
With automated processes, when the operation starts, the manager has access to the performance indicators, previously defined, in addition to other fundamental data for the analysis of the results.
Designing new processes without being able to measure and evaluate them, continuously and in real time, can be a waste of time and effort for the company.
6. Analysis of current processes and results
With the processes defined, automated and ongoing, it is important to make a detailed analysis of how they are working.
This assessment involves performance indicators and other data provided by the control panel. The functioning of each process must be assessed and the presence of any opportunities for improvement should be detected.
To help, it may be good to draw a diagram, with a graphical representation of the flow of tasks, steps, deviations, decision making and events. Also including actors, departments involved, necessary documents, etc.
7. Define process improvements
Usually, in the evaluations of the indicators, delays, bottlenecks, waste, duplication of activities, errors in the exchange of information between the teams are detected, among other flaws that can compromise the performance management and even the company’s performance.
Therefore, it is important to pay attention to the results analysis to find improvements that can be made in the process.
It is essential to remember that this monitoring must be constant. And that, with each adjustment in the process, a new cycle begins, which must also be evaluated and regulated, if necessary.
Did you like our content? To understand a little more about performance management and how to apply it efficiently in your company, we recommend that you read our article on high performance culture!