The document discusses measuring and managing performance through a joined up approach. It advocates measuring both outputs and competencies. Outputs measure what is achieved against objectives, while competencies measure how objectives are achieved through behaviors and attributes. It recommends linking individual performance to organizational goals through a cascading process where individual objectives and competencies directly contribute to departmental and strategic goals. This ensures employees understand how their work creates value and are motivated to perform. The document also discusses developing a competency framework to define the key behaviors needed in each performance area of the organization's "territory".

1. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
Performance Management should include activities that ensure that goals
are consistently being met in an efficient and effective manner, making best
use of resources available to the organisation.
Performance Management should also address issues around behaviour of
individuals, teams, and groups as they interact within and across the
business, and with suppliers, clients, customers, and other stakeholders.
Performance Management may focus on the performance of an
organisation, a department, team or individual employee.
Performance Management may also focus on the systems, processes, and
procedures followed or utilised in order to deliver goods or services.

2. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
'Competency' and ‘competencies’ may be defined as the behaviours
(and, where appropriate, technical attributes) that individuals must have, or
must acquire, to perform effectively at work – that is, the terms focus on the
personal attributes or inputs of the individual.
'Competence' and ‘competences’ are broader concepts that encompass
demonstrable performance outputs as well as behaviour inputs, and may relate
to a system or set of minimum standards required for effective performance at
work.
A ‘Competency Framework’ is a structure that sets out and defines each
individual competency (such as problem-solving or people management)
required by individuals working in an organisation or part of an organisation.

3. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
We seek to establish a clear distinction between being seen as competent – that
is, you can do WHAT is asked of you, and competencies – the way in which we
describe HOW you need to do that if you are to perform at a given and desired level.
This distinction between WHAT you do and HOW you do it is critical in terms of
giving businesses the ability to measure facets of performance that previously they
simply did not recognise.
The term ‘Competence’ was used to describe what people need to do to perform a
job and was concerned with effect and output rather than effort and input.
‘Competency’ described the behaviour that lies behind competent
performance, such as critical thinking or analytical skills, and describes the value
people bring to the job – how they do that job. .
In recent years, there has been growing awareness that job performance requires a
mix of behaviour, attitude and action and hence the two terms are now more often
used to reflect the two sides of the performance coin.

4. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
We focus on two key means of capturing PERFORMANCE:
By measuring OUTPUT – that is, how well someone does in achieving
targets and objectives set for or by them. Often more a measure of
CAPACITY rather than capability.
By measuring against preset CRITERIA (Competencies) – that is, how well
someone does in achieving levels of performance against organisational
best practice – usually a measure of ATTRIBUTES and / or BEHAVIOURS
Both have benefits and drawbacks.

5. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
By measuring OUTPUT
Output is achieved by delivering against
preset Objectives, Goals, Targets, etc.
If these Objectives, etc., are NOT linked
to the key Goals of the
Organisation, then achieving them may
not necessarily contribute VALUE to the
Organisational effort.
This may lead to wasted or misdirected
effort
Also, measuring OUTPUT tells you WHAT is being achieved, but not HOW it is
being achieved.
Individuals could be delivering against their objectives but in a way that harms other
aspects of the organisational.
.

6. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
By measuring OUTPUT
IF Objectives, etc., are aligned to organisational effort, then examining how well (or
not) someone is performing in achieving these objectives can tell us a lot about the
Organisation:
How close are we
to achieving our
Strategic Aims?
Do we allocate
resources correctly?
(Capacity Planning)
Are our Processes
and Systems
working effectively?
Are we ‘joined up’ in working
as an Organisation?
(Synergous Thinking)
Do our staff have the Skills and
Knowledge to operate in the way
we wish them to?
(Capability Building)

7. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
By measuring COMPETENCY
Measuring attributes and behaviours is
difficult – it requires self-awareness in the
individual, and the investment of time by
the manager to properly observe those
behaviours in his or her staff.
Such measurements are inevitably quite
Qualitative in character.
This means managers and staff need
some training in how best to conduct such
assessment.
There is the risk of personal
values, principles, or standards
encroaching the assessment field.
An organisation that acts in accordance
with organisational norms or best
practice does not necessarily achieve
the outputs they are required to.
There is often no direct correlation
between HOW we are behaving and the
attributes we have and WHAT we are
actually delivering.

8. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
By measuring COMPETENCY
If we can find a way of aligning Competency against key Organisational needs, then
driving key attributes and behaviours against a best practice model is a powerful
performance enhancement tool.
We give ALL of our staff the means by which
they can more effectively examine their own
performance and that of others with whom they
work, and the power to comment on such
performance in their day to day work.
We drive best
practice across the
business,
reinforcing key
messages
regarding our
Vision, values, and
the way we wish to
be perceived by
others (Branding)
We stop staff from
behaving in ways
that damage our
reputation, or
impact negatively
on other staff
members, clients,
or customers

9. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
What is critical for any Performance Management System is that individual effort
and behaviours are linked to Strategic Intent and Business-Level goals.
This needs a use of a system that defines an individual’s contribution to the
Needs of the Organisation at a Business / Strategic level.
SO TURNING THIS
!
?
?
INTO THIS
CREATES THIS VALUE FOR
THE ORGANISATION

10. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
Imagine your organisation was an Orchestra.
So where do people get their ‘Lead’ to
ensure they are all on the same
songsheet?
Where does that lead come from?
Who is responsible for providing it?
Who ensures everyone has the
songsheet from which to work?
How do people know that they are on the right songsheet?
When do they know to come in, to make their contribution in the most efficient,
effective, and economic way?
Who tells them that they need to sing louder? Slow down? Speed up? Raise
their pitch?

11. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
Defining Contribution At All Levels Of The Business
Strategic
/Corporate
Goals
Key
Business
Projects /
Activities
TARGETS
MEASURES
TOP
MANAGEMENT
SMARTER
Objectives
MEASURES
TARGETS
Departmental
Projects /
Activities
DEPARTMENT /
TEAM
INDIVIDUAL
SMARTER
Objectives
MEASURES
TARGETS
Individual
tasks, action
s. projects
This is what we call CASCADE – a means of ensuring everyone is on that same
songsheet. Everyone knows how their day to day work is linked to the
achievement of Strategy. Also everyone knows when they are engaged on work
or in activities that DO NOT make a valid contribution.

12. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
Defining Contribution At All Levels Of The Business
Strategic
/Corporate
Goals
Individual
tasks, action
s. projects
If individuals see that what they do has a direct contribution to what the
organisation is trying to achieve, then this has a positive impact on levels of
motivations, commitment and increased confidence in employees.

13. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
One thing that is CRITICAL when measuring performance is that any assessment
criteria are directly linked to organisational need.
That is, that ALL Objectives flow from the Strategic Intent of the business – so every
time an individual completes a task or achieves an objective or target, he or she is
confident they have contributed value to the organisation. (DOING THE RIGHT
THINGS RIGHT)
When seeking to measure Behaviour and Attributes by Competencies, that any
Behavioural Competency Framework is embedded within the organisational needs,
and that individual competencies reflect key behaviours needed to deliver value in
that area.
We refer to this as the Organisational
‘TERRITORY’ – it is a Map of what is
important to the business to achieve if it is
going to be successful and achieve its long
term strategic goals.

14. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
We divide this map up into what we
call Key Performance Areas.
GETTING
THINGS
DONE
BEING
CONSISTENT
AWARENESS OF
OUR CUSTOMERS
CAPABILITY &
CAPACITY
An example of what that Territory might look like
These areas are designed to ensure
the organisation is focussed on
doing the Right Things Right at
every level.
They also ensure that the
organisation is balanced in its
approach to defining performance
needs and that ALL of the territory is
covered in equal measure.

15. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
KEY PERFORMANCE AREAS
If you were using a Balanced Scorecard approach, these would be:
FINANCE
PROCESS FOCUS
CUSTOMER FOCUS
LEARNING & GROWTH
Or we can add others or replace certain labels, so::
ENVIRONMENTAL AWARENESS
MISSION EXECUTION
Sometimes organisations prefer to use their own labels, so:
CUSTOMER FOCUS often becomes ADAPTABILITY or AGILITY
PROCESS FOCUS becomes CONSISTENCY or CONFORMANCE
FINANCE becomes OUTCOME FOCUS

16. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
KEY PERFORMANCE AREAS
When we build a Competency Framework for an organisation, we define the
Territory in more detail.
We identify the key issues that need to be addressed in each element of the
Territory.
To do this, we work with the client to create five, six or seven key attributes of that
element of territory – on which we can fasten competencies.
Those competencies define the RIGHT WAY of doing things for individuals who
have to work predominately in that sector.
Then we overlay a series of Competency Statements that define the core
behaviours, and technical attributes that support the achievement of critical
objectives (the Mission) for each Key Performance Area.

17. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
KEY PERFORMANCE AREAS
By completing this overlay, we are able to show the organisation the following:
What is really important to the business in terms of its focus of attention.
What Critical Success Factors are needed if the business is going to be
successful in achieving its critical Key Performance Area Objectives.
What Competencies are most likely to support the achievement of critical goals.
What the benefits of completing this ‘mapping’ exercise might be to that
organisation.
How to proceed from there with appropriate Change Initiatives that will lift
organisational performance and ensure the organisation does the RIGHT
THINGS RIGHT.

18. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
USING THE COMPETENCY FRAMEWORK
Each individual can now have an Individual Competency Profile established for
his or her job.
ALL job descriptions will have a Competency Profile established as part of that
role definition.
Competency Profiles will encompass a mix of behavioural and technical
attribute Competencies.
This ensures the organisation has a strong mix of attributes and behaviours at
the heart of all staff actions and interactions.

19. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
USING THE COMPETENCY FRAMEWORK
Each Competency comprises:
An overarching statement that defines exactly what this competence addresses.
Example:
Competency: Communication
Only the most responsive, flexible and agile businesses prosper in today's
competitive global marketplace. Effective communication is a critical factor in
achieving this success. It requires the business to communicate effectively its
strategy, values, objectives, and other critical information, not only to its
workforce but also to customers and suppliers. Day-to-day communication
inside and outside the organisation should take place comfortably and
consistently. Effective communication is about joint and equal participation,
where senders and receivers interact to share information, advice, knowledge,
and organisational learning.

20. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
USING THE COMPETENCY FRAMEWORK
Each Competency comprises:
A series of progressively more complex statements of performance which define
what GOOD looks like. There are five distinct levels of performance. These
range from simple actions at A to a much more multifaceted statement at E.
The competency – COMMUNICATION is shown here:
Level A
Engaging
Communicates
relevant information
clearly and
unambiguously.
Listens and responds
appropriately to
others.
Level B
Happening
Level C
Working
Level D
Embedded
Level E
Driving
Able to communicate
information in a variety
of different situations,
employing a range of
communication tools to
get their message
across.
A confident
communicator, both
formally and informally.
Able to employ
appropriate influencing
and persuading
strategies to maintain
effectiveness in difficult
situations……
Uses a range of
communication
techniques to engage
with and involve others
in ways that anticipate
and meet the needs
and interests of their
audience. Able to
process data…….
A skilful communicator
who uses advanced
communication
techniques to maintain
effectiveness in hostile,
sensitive and/or
complex situations.
Uses communication as
a tool to help……

21. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
USING THE COMPETENCY FRAMEWORK
Level A
Engaging
Communicates
relevant information
clearly and
unambiguously.
Listens and responds
appropriately to
others.
Level B
Happening
Level C
Working
Level D
Embedded
Level E
Driving
Able to communicate
information in a variety
of different situations,
employing a range of
communication tools to
get their message
across.
A confident
communicator, both
formally and informally.
Able to employ
appropriate influencing
and persuading
strategies to maintain
effectiveness in difficult
situations……
Uses a range of
communication
techniques to engage
with and involve others
in ways that anticipate
and meet the needs
and interests of their
audience. Able to
process data…….
A skilful communicator
who uses advanced
communication
techniques to maintain
effectiveness in
hostile, sensitive
and/or complex
situations. Uses
communication as a
tool to help……
These levels do not directly correlate with levels of management in an
organisation, although it is more likely that managers will have profiles in the C D
E range, whilst operators and other staff may be in the A B C range. It is not
impossible that a non-manager (perhaps a very knowledgeable technician) may
have some elements of their profile as C D or even E.

22. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
USING THE COMPETENCY FRAMEWORK
Finally, we have defined a number of potential observable actions / behaviours
that a manager or colleague might see should an individual be working at a
specific level of competence as defined in the previous slide.
As an example, here is LEVEL C of COMMUNICATION:
C

A confident communicator, both
formally and informally. Able to
employ appropriate influencing and

persuading strategies to maintain
effectiveness in difficult situations.
Able
to
facilitate
effective

information exchange through the
organisation.
Able to represent the views of his or her team or
functional group at cross-functional meetings or
discussions, and/or to an unfamiliar audience.
Takes time to discuss issues with work colleagues, and is
able to influence or persuade them to pursue alternative
courses of action to which they were initially disinclined.
Provides a consistent and high-quality flow of information
to individuals, teams, and groups around the organisation
with whom he or she is required to interact.
These observable outcomes may be used by the individual to self assess their
performance and to create evidence for an Appraisal conversation. They may also
be used by the manager to do the same – to highlight areas where he or she sees
evidence or not of performance at this level

23. MEASURING AND MANAGING PERFORMANCE – A JOINED UP APPROACH
By combining OUTPUT-based measurements – WHAT are people doing,
along with COMPETENCY-based assessment – HOW are they doing it, we get
a powerful toolset for understanding how well the business is doing and what
needs to be done to either leverage or improve performance as appropriate and
necessary.
The toolsets are easy to deliver – they do need the business to be certain as to
what GOOD LOOKS LIKE – what really is important to the business if it is to
achieve its overarching strategic goals and execute its mission effectively,
efficiently, and economically.
We can help your organisation to put in place a system of measurement,
appraisal, and subsequent management of performance, based on these
simple tools.
For more information, please contact Amanda or Bernard at the ‘contact us’
section of the website.