Technology Performance Management (performance management) is an improved version of the method of management by objectives (MBO – Management by Objectives), improve the manageability of the organization. It provides comprehensive application of three tools:
setting goals and evaluating their performance based on KPI organizations, departments and employees;
the development and monitoring of compliance with the performance standards relating to typical activities and operations;
modeling and assessment of competences of employees. It is a combination of these methods allows weaken or even eliminate the disadvantages of the classical management by objectives. After all, this method allows to evaluate the work of staff in financial and other (usually quantitative) indicators showing the final results of operations, but does not pay attention to the evaluation of such success factors as “forward-looking» KPI, aimed at developing the organization and competence of the employees.
A summary of performance indicators!
Assessment of staff performance (performance objectives and standards compliance) carried out by line managers and other internal customers in terms of efficiency, we develop on the basis of official functions, units and personnel. In the practice of Performance Management uses a variety of indicators: quantitative and qualitative, individual and team, financial and non-financial.
Quantitative indicators -vyrazhayutsya numbers having a certain economic or physical sense: rubles, tons, watches, pieces, parts, percentages, etc. (Eg sales, the share of marriage, the size of the customer base, turnaround time, and others.).
Qualitative indicators -bally corresponding to the level of achievement of the result (of the teams at work, labor discipline, etc.).
Individual performance – the results depend only on the efforts of a particular person (to the amount of signed contracts for the sales representative, the relative proportion of defective items produced by the employee).
VKomandnye indicators – results of the design team, unit or the entire organization; It depends on the efforts of different departments and employees to stimulate their effective corporate intranet interaction (total sales of the company’s production volume in the shop, customer satisfaction, profit margin etc.).
Financial indicators – related to the financial performance of the organization, department or employee (sales profitability, asset turnover ratio, the profitability margin, net income, cash flow, etc.).
Non-financial indicators -otrazhayut market position of the company and the efficiency of internal business processes, including training and development, organization (market share, customer satisfaction index / suppliers, labor productivity indices of satisfaction / loyalty of staff, the production cycle, the level of competitive advantages, the implementation of projects development of the company and many others.).
In practice, to assess the performance of the employee, department or organization does not use all the possible performance indicators (a lot of them), only the key (KPI), which provides concentration and energy of people to achieve the most important results of the work in a given period (month, quarter, year). However, in the process of regular (eg, monthly) KPI measurement is possible and even necessary to “build” an assessment of key competencies. This allows employees to show their weaknesses and motivate them to continuously develop the most important personal and professional qualities.