ISDS Performance Management

Services

• Business & Strategic Planning
• Sales & Marketing
• Change and Risk Management
• Performance Management
• Coaching & Mentoring

Downloads

• Performance Managment Flyer (.pdf)

Performance Management

Research shows that the vast majority (<80%) of businesses measure performance purely on financial results based around an annualised budgeting process. Such a one dimensional philosophy for performance is fundamentally flawed.

This kind of approach often forces short term thinking with little appreciation of cause-effect and lead-lag dynamics. What is worse is that within this approach, the real drivers of value in the enterprise and their non-financial assets are not even given their rightful priority.

The real purpose of Performance Management is to provide a decision making framework to manage 'stakeholder value' so as to improve enterprise value and sustainability.

Operational budgets can of course be part of this process but only when they have been derived FROM the strategic plan AND its direct relationship with the Enterprise System model. This approach focuses attention on the non-financial value creation drivers which deliver financial outcome; thereby enabling cause-effect and lead-lag dynamics to be appraised via decision making scenarios and objectives.

The process should not be considered as perfect for mistakes are implicit in any decision making process; particularly longer term decisions. Rather it is a process for understanding the context and dynamics for informed decision making, the factors for potential outcome(s) and the management process for enabling success and/or applying corrective action. Particularly when it should be understood that within the decision making context, the unknown and unknowable MUST sometimes be taken into account!

Performance management is the forum where the 'macro' and the' micro' meet to enable proper understanding of decision making cause and effect together with lead-lag gestation.

Therefore it should be understood that 'intangible' factors must often be considered by senior management when making decisions. This is especially the case for strategic and non-financial performance factors for which real time precise or empirical measurements may not be possible and where there is a degree of predictive interpretation (experienced 'gut' feel or entrepreneurial 'wisdom') to be made.

Knoweldge should therefore BALANCED with experience in order to consider appropriate cause-effect outcomes for management focus.

'read more'