One of the most important challenges in many companies today is the move toward a Capabilities-Driven Plan & Strategy. Companies that define and line up a process strategically ccombining Budget and Performance Review process, have a definite competitive advantage, if you are one of those companies thinking seriously about strategic and planning, now it’s time to start with it for a successful execution.Undoubtedly, you have already started to draft lines for budget 2014, otherwise known as a strategic plan or corporate budget., with only a few months to finish 2013, on the other hand, not many companies have started to assess performance management capabilities, this is a vital process to support the Executive Management Team when planning their objectives for the upcoming year / 2014 and when reviewing team’s performance throughout the year 2013.
This vital process is also designed to help the Executive Management team to monitor and assess performance, coach and develop employees who are not performing and reward good and excellent ones.
If this process is used well, organizations will be able to lead and motivate employees to deliver the performance the company needs and expect from the team members.
In simple words, Just as you can’t afford to start the new year without a corporate budget, you can’t start it without a formal Management Performance Review process neither, a formal Management Performance Review process is just as important as a corporate budget to start the next financial year.
As the top executive members or shareholders embrace the budget for next year, a capability-driven strategy, the planning and performance management system tends to remain unseen or hidden.
A truly relevant planning and performance management system will help you install the discipline and accountability to make right choices. It will make it easier, not harder, to assign the lion’s share of investment to any companies differentiating capabilities and it will keep things on track with clearly articulated objectives such as KPOs and performance metrics.
Why Doing This?
A more relevant planning and performance management system yields significant long-term benefits, because it continually evaluates your company’s performance against strategy / measurable goals. The individual performance benchmarks tell you where and how external changes are affecting not only the individual, but also the team’s progress.
This provides a real-time view of capabilities at work in the marketplace. Strengths and weaknesses become clear, informing your investment decisions for the next strategic planning cycle.
After a few years, this virtuous feedback loop can become second nature, paving the way for real collective mastery of the capabilities that distinguish your company.
Keeps alive leadership competencies helping to strongly build the culture’s organization
Encourage awareness on People, understanding how people’s work contributes to the company’s strategy
Influence the workforce to a more positive stage about what is important and what really matters
Work through things better as a team and individuals are more committed to results
Last, but actually first, the Executive Management team will have a strong foundation to finally Walk the Talk.
Capabilities-Driven Plan & Strategy process clearly demonstrate to the entire team within the organization that values and culture matter by evaluating how well each team member has exhibited company’s foundation’s core purpose.
There is a completely new way of working, there is a need to be highly proactive about holding people’s accountable for results and process set / installed by companies are playing a part in the success or failure.
When people don’t have clear expectations or goals, they don’t achieve them. Communicate these early on, throughout a formal process and include them in the review as a point of reference to show where they surpassed or fell short of expectations
On a final note, you would agree with me that “Changes are difficult, not changing is Fatal”
Sergio Foti, Msc