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Performance Management (PM) systems mean different
things to different organizations. An early example of a performance system
built for a large sales force utilized MS Excel (many years ago and many linked
workbooks). What was learned from this system, however, is that if you provide
reliable metrics at a lower-grain it naturally increases overall performance
(similar to report cards in school; grades by subject area).
This early system
took sales goals to a lower service level (categories) which led to better
overall performance. This example provided stratification and actionable goals
at this lower level which drove collaboration between managers, sales people and
peers. Modern day PM systems go well beyond this example and apply to marketing,
sales, finance, engineering, supply chain management (SCM), manufacturing and
customer service organizations.
By using metrics and goals across these
organizations, companies are able to increase coordination and collaboration for
continuous performance improvements. PM systems decentralize a company's
performance objectives and puts the responsibility at management and associate
levels. Our assumption is that people come to work everyday and want to do well.
Clear goals and feedback provides the means for associates to have a clear
picture on how they contribute to larger company objectives. Business
Intelligence (BI) tools have allowed great strides in building PM systems.
By
providing reliable reporting capability over the web to potentially thousands of
users (similar to Google access), BI has made it possible to maintain a central
repository for goals and actuals. Balanced Scorecards (BSC) have taken PM even
further since it's inception in 1987. What BSC brings is the ability to have
Strategic Management objectives allocated throughout a company at associate
levels. Like the earlier example of report cards in school, BSC focuses on many
areas with weights applied so that performance can be summarized at associate,
management and corporate levels.
Process Modeling is also key to PM for
identifying business processes across the company. The recent ability to build
high-end Excel-like models with Rich Internet Applications (RIAs) has also added
to PM. This new technology gives PM a new spin for the user-interface. BI has
been great for displaying numeric data and reaching large user audiences
(on-demand information). RIAs take PM to a new level with Excel and
PowerPoint-like capabilities. This new graphic-rich web interface provides
better abilities for the user to interact with PM systems through graphics and
numerics. An example provided by Alexicon is DimensionSigma. This solution
provides a true blend of solid management methodologies and RIAs.
Visibility creates a shared sense of responsibility to overall company
objectives. We also believe that user activity is important to a PM system. Web
Analytics offers the ability to understand how your PM system is being used.
This insight helps the continuous improvement of PM systems. Information
Technology adoption has always been a concern when building any management
system; people need to use the system to make it a success.
BI has advanced the sharing of numeric data for over years. The organizational benefits for
PM can propel companies to new levels of increased sales, profitability and
overall company health. Managing metrics, content, and delivery of PM systems
requires a focused approach. Alexicon can provide solutions for your company to
attain true PM.
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