The document discusses performance management in wholesale distribution. It outlines a performance management lifecycle that begins with a well-articulated business strategy and establishes key operating objectives. Measures and targets must be aligned to move the wholesaler in the desired direction. The lifecycle includes setting measures and targets, monitoring and evaluating progress, and planning and executing to address challenges. A successful performance management program integrates this continuous cycle with an infrastructure that supports goals and a culture of accountability.

1. Performance Management in Wholesale Distribution
The performance management lifecycle is an ongoing process for wholesalers,
not a one-time event. The performance management lifecycle, illustrated below,
begins with a well articulated business strategy. The business strategy
establishes the key operating objectives for the future. Measures and targets
must be balance and aligned to move the wholesaler in the desired direction.
Misalignment often results in operating targets left unachieved. The third critical
component is to understand which processes and procedures require change.
Targets with inefficient and ineffective business processes results in poor
productivity and targets unmet. Information allows the wholesaler to answer
the question, “How much progress are we making” and coaching moves the
various teams to higher levels of performance through the articulation of
expectations and employee feedback process.
Each department within the organization must follow the lifecycle articulated
below. While practically all wholesalers have a defined business strategy, many
have not defined, at the department level, what the strategic objectives are that
will support the organizational vision.
Strategy “What do we want to
achieve?”
Set “How do we set the
Measures direction?”
and Targets
“Are we Reward Plan “What is
encouraging the and and getting in our
right behavior?” Coach Execute way?”
Monitor
and
Evaluate
“How much progress
are we making?”

2. The Performance Management Cycle is one of three key components to
establishing performance excellence. The other two components consist of, as
illustrated below, a Performance Management Infrastructure and a Performance
Management Culture. If the culture of the organization is such that continual
productivity, service, revenue enhance, etc. do not receive top billing, the
performance of the organization may lag other competitors that do have a
performance management culture. Infrastructure is imperative. Employees must
have access to timely and relevant information. Organizational structure must
be supportive of the desired goals and objectives and processes must be
consistently reevaluated to stay competitive.
There are three critical components of a successful Performance
Management program
An integrated,
Performance
continuous cycle
Management
rather than a one-
Cycle
time event
Alignment of people, A culture of
Performance Performance
processes and responsibility,
Management Management
technology with authority, and
Infrastructure Culture
strategy and the PM accountability
program
For more information on how you might improve your operating performance,
please contact Pat Jones at 256-682-2510. The GARR Consulting Group specializes
in assisting wholesalers improve their performance.