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Introduction - Strategic Performance Management Today's business world requires new approaches towards strategic performance management. The wrong approach will often drive dysfunctional behavior and jeopardize performance. Three key components of this problem are an incomplete picture of the strategy (the strategy trap), the wrong performance measures (the measurement trap), and a wrong management approach towards managing performance (the performance management trap). Strategic Performance Management helps to clarify the strategic direction Imagine an organization with people that don't really understand the strategic goals and the direction of where the organization is heading. The executive team of this organization believes that the [...]

Consider this sporting analogy. To perform at an optimal level, an athlete must be lean. If he or she is carrying unnecessary fat then he or she will be sluggish: this will have a detrimental impact on their performance. At the same time the athlete must not be too thin as this will make them weaker and less energetic than is required, which will also significantly impair performance. A world-class athlete strives to have exactly the right amount of body fat required to deliver optimal performance and so increase the likelihood of them beating the competition. But as well as [...]

Performance Management and the limitations of measurement Performance management relies on good performance measures. However, not everything can be measured to an extend that we would like. A great example to illustrate our measurement limitations is measuring human intelligence. The 'measure' we would traditionally use is IQ (Intelligence Quotient). However, the questions that arise are: What is intelligence? And what do IQ scores actually measure? Whereas the details of the answers to these questions are still subject to an ongoing debate, on the whole IQ tests focus on our analytical and mathematical reasoning. However, Dr. Howard Gardner, professor of education [...]

An article in Forbes magazine shows how a charity fund is using a balanced scorecard to choose the best causes for donations. The benefits of using a balanced scorecard can apply in a large number of unexpected places - including a US-based charity fund that is using the balanced scorecard to judge the merits of non-profit organisations and calculate how much cash to 'invest' in them. The practice was highlighted in an article in Forbes, the US business magazine. The article focuses on New Profit, a fund that had raised $11 million and redistributed the money to eight charities along [...]

Having thought about all the above, you are still left with too many choices for performance management software. So how do you know which of the different vendors to go with? How do you cut down the list from 50 to 3 that you might want to put on a shortlist? What is the process of making the right decision about selecting the appropriate solution? Here we present a framework that assists you in the decision process. Strategic Performance Management Software Selection Framework Selecting the right strategic performance management software solution is a major decision for most organisations. The prices [...]