Capital performance management


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Capital performance management

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Capital performance management

  1. 1. Capital performance managementWant a High Performance Organization?For a while now we have been hearing a great deal about High PerformanceOrganizations and High Performance Management and how achieving high performancewill improve your business. In fact in todays technologically advanced, global economyhigh performance is not an alternative it is a requirement for all businesses that want toprosper in the years to come. The terminology of high performance sounds prettystraightforward; if performance is at a peak then the business processes should follow suitand so then should productivity, profits, and competitiveness. Lets investigate how itworks.How does business achieve high performance?The standard methodology for achieving high performance within the workplace hasbeen to breakaway from the traditional and highly structured model of businessorganization to one that is more organic and flexible. Within these organic systemsmanagers are encouraged to create teams of employees who work together toward acommon business goal. The teams are empowered to make decisions and solve problems,they monitor and improve their quality, and each individual employee is seen as acontributing business partner.Utopia at last, people have meaningful work, employees are respected and trusted,creativity and innovation flourish, quality improves, and productivity reaches levelsunheard of only months before. Yeah right!So, what really happens? Why does the theory of High Performance so often get derailedwhen it is based on sound principles of human behavior and motivation?The problem is not with the theory, it is in the execution!!!. Our culture is so indenturedto the traditional model of organization that, despite our best efforts, it is almostimpossible to remove the vestiges of managerial control, division of labor, and the reamsand reams of policies and procedures that trap employees into doing things one way, andone way only. When well meaning executives, managers, and consultants get a hold ofthe notion of High Performance Management they often rush to create teams, write newjob descriptions, set up feedback systems, and create elaborate reward and recognitionprograms all in an effort to convince their employees that they are valued and respectedand that their contributions are meaningful and appreciated and will be rewarded.Again, all sound notions but the problem is that these programs address only surfaceissues and they do not even begin to attack the traditional notions and customs thatcontinue to prevail. Think of organizational dynamics like an iceberg where only 10% of
  2. 2. the issues are visible on the surface and the bulk remains hidden and potentiallymenacing underneath. In truly High Performance workplaces managers do not have to"convince" employees that they are valued, the employees inherently know they arevalued simply by the way the work is organized and performed.So whats wrong with this picture????The organization that is trying to be High Performance is really no more than a traditionalorganization in disguise. It has adopted new terminology and is trying out some newhuman resource management techniques but the organization has NOT CHANGED theway that it approaches the system of working. Work is still narrowly defined anddepartmentalized and management is still controlling and directing the flow. On thesurface it may sound like things have changed but the employees know they are doingexactly what they did before; except now, they are part of a "team" doing it.Make a real transition using Human Capital Management (HCM)The only way to move toward true High Performance is to adopt a system of HumanCapital Management that helps measure and execute real changes in the way that humancapital (resources) is managed. It starts with the realization and acknowledgement thatyour human, or intangible capital is as important as your tangible capital and that like thetangible items, human capital needs to measured and accounted for on a consistent basis.Just as you want to keep your equipment in top shape so should you keep your people intop shape - ready and capable of performing the job they were hired to perform. Just asyou seek investment opportunities for your financial capital to grow, so you need toinvest in your human capital and provide them with opportunities to grow.By attending and understanding the needs of your employees you allow them to performto their capacity. This maximum capacity yields high productivity and that is when youtruly have a High Performance organization.High Performance is as critical as it is possible. It is a process that starts withphilosophical change and ends with practical solutions that lead to substantialimprovements in the way work is accomplished, the way work is perceived, and theamount of work that is achieved. Practicing effective Human Capital Management thatencompasses how the entire organization runs and how it evaluates employee success,will create a natural link to High Performance Management that will see businessesemerge as healthy, prosperous, and highly competitive. : Over 200 ebooks, templates, forms forperformance appraisal.