This document discusses the importance of performance management for organizational effectiveness. It argues that performance management influences factors like employee development, teamwork, commitment and retention. It states that effective managers are able to understand how employees feel about their work and intervene when needed. The document provides details on how to develop an effective performance management system, including gaining input from senior management, employees and other stakeholders. It outlines key elements of strategic plans that can be used to develop performance measures and management. Overall, the document advocates for the use of performance management to motivate employees and improve business performance.

1. Performance Management: A Tool For Organizational Effectiveness
By Mohammad I. Fheili / Risk & Capacity Building Specialist
Fall 2017
INTRODUCTION
Look deeply at almost any factor that influences organizational effectiveness, and you
will find that performance measurement and management plays a role. Performance
management influences organizational effectiveness in a number of areas:
 Development of talents
 Teamwork
 Employee commitment, moral, and health
 Employee retention
 Innovation
 Productivity
 Efficiency
 Quality of service
 Customer loyalty
These factors are the product of a well developed and maintained Manager-Employee
relationship: What is it about Managers that influence their relationship with employees?
What skills do Managers need to prevent employees from leaving? The most effective
Managers are those who have the ability to sense how their employees feel about their
work situation and to intervene effectively when those employees begin to feel
discouraged or dissatisfied. Effective Managers are also able to manage their own
emotions, with the result that employees trust them and feel good about working with
them. In short, Managers whose employees stay are those who effectively manage
performance. Performance measurement and management are the “heart and soul” of
Organizational Effectiveness!
Flowing from the organizational mission and the strategic planning process, performance
measurement system provides the data that will be collected, analyzed, reported, and,
ultimately, used to make sound business decisions. It directs the business function by
justifying budgetary expenditures, documenting progress towards establishment
objectives, identifying areas of both strength and weaknesses, providing an on-going
assessment of the current “organizational climate,” and driving business improvement. In
a nutshell, performance measurement supports organizational existence! Performance
measurement systems succeed when the organization’s strategy and performance
measures are in alignment and when senior managers convey the organization’s mission,
vision, values and strategic direction to employees and external stakeholders. The
performance measures give life to the mission, vision, and strategy by providing a focus
that lets each employee know how they contribute to the success of the company and its
stakeholders’ measurable expectations.
Strategic plans set the foundation for effective performance measurement systems.
Traditional performance measurement systems that focus on the wrong set of
performance measures can actually undermine an organization’s strategic mission by

2. perpetuating short-sighted business practices. For this reason, it is appropriate to discuss
the critical elements of strategic plans and review the compatibility of strategic plans to
an integrated performance measurement & management system (See Chart below).
A well-developed strategic plan should contain the basic information necessary to begin
the formulation of an integrated performance measurement & management system:
Elements of
Strategic Plan
Performance Measurement Attributes
Strategic Goal Articulates the enduring mission or “End State” desired
Objective Describes the strategic activities that are required to
accomplish the goals
Strategy Defines strategic long-term requirements that link to
objectives. Typically contain dates, basis of
measurements, and performance targets
Tactical Plans Identifies the short-term requirements that link to
strategy. Typically contain cost, time, milestone, quality,
or safety attributes as well as performance targets.
With performance measurements collected from the strategic plan, an assessment must be
performed to determine the quality of information and current use of existing measures.
The objective is to find out what measures are maintained and monitored, and who the
owners and data customers are (i.e., you can manage only what you can measure!). Finding answers to
the following questions should provide enough information:
1. Who is responsible for collecting and reporting performance information?
2. What information is being reported?
3. When and how often is the performance measure reported?
4. How is the information reported?
5. To whom is the performance measure reported?
Customer-Driven
Strategic Planning
Multi-Year Goal Setting
and Resource Planning
Annual Performance
Planning
Resource Allocation
Establish and
Update
performance
Measures and
goals
Establish
Accountability
For
Performance
Measure
Performance
(Data collection
And reporting)
Analyze
and
Review
Performance
Data
Evaluate
and
Utilize
Performance
Information
Performance Reporting
To Employees and
Management
Employees and
Management Input
___________________
Management Priorities
And Decisions
1
2
3 4
5
6
7
8
Performance Measurement
Process Model

3. Unfortunately, strategic direction, Objective, strategy, or performance measurement and
management often take a back-seat to the running of day-to-day business operation and
“crisis management.” If and when practiced, performance management is treated as
 Nothing more than a “HR Form” (as a opposed to a management tool) to be
completed by the line manager.
 As a means to “invoice” the management for the payment of bonus! This is not
intended to leave you with the impression that performance and bonus payment
are related in any shape or form.
 A way for the Line Manager to “Settle a Score” with one of his/her staff.
This is ongoing because Performance Management, as it is practiced today, has received,
in many cases, the blessing of the higher management. Otherwise, the most it got is the
“No-Attention” treatment! Interesting, indeed, that most organizations spend the
resources to describe “Jobs” and corresponding “Duties & Responsibilities,” and appoint
a Human Resources Manager to mechanically “administer” the “Job Holders.” But none
of this information has been put to good use in neither performance measurement nor
management. Moreover, Employee Motivation, Employee-Retention, and Employee-
Satisfaction are just terms that exist in the management landscape, and they are often
flagged, by the “Seniors,” as textbook materials with little practical implications. To add
insult to injury, we often find the Line Manager spending his/her time overseeing
transactions, and very little time managing the people performing the transactions. The
“flip side” to this, however, is how the very same organizations manage their customers
and attend to their needs and wants (e.g., The Customer is King!). Often marketers go the
distance to tailor-make a product to fit the needs of the customer. They budget for market
survey and “mystery shoppers” to accurately predict customers needs and wants. They
strongly believe that securing customer satisfaction and customer retention is a mission
which is worth allocating sufficient resources to. Well, it is time to change this because,
undoubtedly, Employee Satisfaction is a prerequisite for Customer Satisfaction; and one
can not be achieved without the other!
REQUIREMENT FOR EMPLOYEE EFFECTIVENESS
“Effective Employees” are the ones who provide higher productivity and secure customer
satisfaction, and in turn, generate greater financial returns for the organization. However,
Effective Employee is not a technical jargon; instead it is a way of life! It is the result of a
number of credible and consistent steps that the management must put in place.
Employees Need To Know What To Do To Make Their Organization Successful. This
involves few, but critical steps:
 Provide clear line of sight to goals up, down, and across the organization.
 Facilitate the process of creating, cascading, publishing, monitoring, and measuring
performance against goals.
 Cascading objectives
 Line of sight goal alignment
 Ongoing progress tracking
 Analysis on performance
against goals
 Live visible “ToDo” lists
 Goal adjustment
 SMART goal setting
 Matrix/Project based goal
adjustment

4.  Accomplishment gap analysis  Goal audit history
The key indicators are:
 Employees understand their organization’s business goals, the steps that must be
taken to achieve them, and the way their own contributions fit in.
 Receive information that measures how well their organization is doing against
those goals.
 The goals must be realistic and clearly connect to the organizational strategy.
 The organization must objectively and credibly differentiate between high and
low performers.
Employees Must Be Motivated To Help Their Organization Succeed. This clearly is a
commitment which requires:
 Facilitate a meritocratic (that is merit-based) culture of pay for performance.
 Integrate goal plans with competency development, results and rewards.
 Commitment does not come easy:
 Planning for salary, promotion, bonus, and stock
 Integration with goal setting and performance management processes
 Budget and compensation guideline management
 Organization-customizable and performance-based recommendations
 Complete approval workflow.
The key indicators of Commitment are:
 Employees are proud to work for their organization, perceive it as better than
other organization, and recommend it as a good place to work.
 Employee satisfaction is high and employees stay with their organizations even
when similar positions are available elsewhere.
Employees Must Be Provided With The Training, Resources, Tools, And Equipment
They Need To Do Their Job. The enablement of employees translates into:
 Provide tools that deliver immediate value to the manager and the employee.
 Facilitate ongoing manager-employee dialogue and tracking of plans and results. The
requirements for enablement vary, and include:
 Role-based competency models
 Fully integrated with performance reviews
 Industry specific competency hierarchies
 Visibility to individual skill gaps
 Direct access to individual competency profiles
 Coaching advisor
 Writing assistant
 Multi-level competency hierarchy with behavioral indicators
The key indicators of enablement are more of what employees expect to have:
 The training they need to be effective
 The resources they need to be effective
 Reasonable workloads
 A say in how their work gets done
 Enough colleagues to perform required work

5. Employees Need To Understand And Live Up To Their Company’s Values And Expect
Others To Do The Same. From your vantage point as a supervisor, you need to:
 Define clear expectations for goals, core values, competency attainment and
requirements.
 Empower the employee to take control of their path within an organization and
optimize their contributions.
 Several steps become necessary to secure this “Effectiveness Factor:”
 Expectations setting
 Definition of objectives
 Agreement on competency requirements
 Development planning
 Skill gap analysis
 Ongoing progress tracking
 Pay for performance
 Timely reinforcement
 Process consistency
 Employee involvement
This, no doubt, borders on Integrity because it looks for answers to one or more of the
following questions:
 Do employees have confidence in senior management?
 Do employees believe that the organization acts with honesty and integrity?
 Do employees believe the information they receive from management?
This certainly matter to the bottom line because research has shown that:
 The financial performance of companies with highly favorable employee attitudes is
nearly four times better than companies with poor employee attitudes.
 Organization with highly favorable employee attitudes better withstand economics
and other crisis.
 Commitment, line of sight, integrity and enablement all impact an organization’s
financial performance.
 Effective HR functions are important drivers of employee effectiveness.
GENERAL DIAGNOSIS AND PRESCRIPTION
The only tool available and can be readily available to secure employee participation and
commitment in the achievement of corporate outcomes (i.e., manage relationships with
employees) is “Performance Appraisal Review.” Employee Relationship Management
(ERM) implicates the following stakeholders groups:
1. The Customers
2. The Senior Management
3. The Shareholders (or Owners)
4. The Employee
“Stakeholders” is a common term in performance-based management and refers to those
people who have or perceive they have a stake in the future success of an organization or
organizational unit. It is imperative to have a very clear idea of who these people are and

6. what and their needs and expectations are. Their points of view and expectations should
all be considered in developing strategic goals and objectives. If they have a stake in the
output of the process, they should have a stake in the input to the process!
Senior Management Involvement The performance measurement and management
initiative must be originally introduced, and continually championed and promoted, by
the top executives. Leadership commitment to the development and use of performance
measures is a critical element in the success of the performance measurement and
management system.
A significant element of senior management’s stewardship is to implement the strategic
plan they had a hand in developing. Therefore, they must be involved actively and
directly right from the start of any performance measurement & management process
development by formulating and communicating strategy and by providing input on
critical measures. Four specific ways Senior Management can make a successful impact
through their involvement are:
 CHAMPION THE CAUSE. Lead by example! Show a sincere interest in the
system and a fervent commitment to its success.
 DELEGATE RESPONSIBILITIES. Empower employees. Senior managers often
form design teams that have the responsibility for strategic measures.
 DEVELOP GOOD COMMUNICATION PROCESS. A good communication
process provides a critical link between the tasks employees perform and the
corporate strategic plan.
 ALWAYS SEEK FEEDBACK. Senior managers need to know what employees
think about their jobs and the organization – especially if they are not in alignment
with the organization’s strategic direction. Therefore, they must encourage all
employees to tell them the truth and then accept it graciously. Doing so creates
accountability for both employees and senior management.
Employee Involvement When developing an integrated performance measurement and
management system, we need not forget to involve the employees in the process. After
Employee
Performance
Review
PERFORMANCE MANAGEMENT
BUSINESS PERFORMANCE
Environment for
Employee Relationship
Management – ERM
Shareholder
SeniorManagement
Supervisor
Customer
Satisfaction
ResultsResults
Satisfaction
Business
Performance
Credibility
Objectivity

7. all, they are the ones who directly contribute to the input, output, outcome, performance,
process, and every other aspect of the organizational operation. Employee involvement is
one of the best ways to create a positive culture that thrives on performance management.
When employees have input into all phases of creating a performance measurement and
management system, buy-in is established as part of the process. The level and timing of
employee involvement should be individually tailored depending on the size and
structure of the organization. Here are some factors to consider when involving
employees:
 Involvement creates ownership which increases loyalty and commitment which
increases accountability.
 Involved employees generally are happy employees, and happy employees
contribute to the success of the organization. That’s why best-in-class companies
measure employee satisfaction.
 Employees will perform according to the performance metric, i.e., the performance
metric will drive the employees’ behavior. It would be prudent to give them a say-
so in the development of a system that will drive their performance.
 Involve those employees who will be directly impacted by the system as well as
who will have to implement it.
 Make sure the employees understand the “assignment” and the extent of their
involvement.
 Identify gaps in knowledge and experience – at whatever level – and provide
targeted, just-in-time training to address these.
A strategy has to be developed to systematically understand what these stakeholders want
and expect. Depending on the stakeholder, however, different techniques or tools are
used. For customers, organizations often use surveys or customer focus groups. For
employees, performance appraisal review is, by far, the most powerful tool to effectively
manage relationships with employees. Performance management is a powerful tool for:
1. Energizing people
2. Propelling productivity to new heights
3. Shaping a group of individuals into a committed workforce dedicated to
continuous improvement.
4. Securing employee-satisfaction and retention
Performance
Objective
A statement of
desired results for
an organization or
activity
Performance
Measure
A quantitative
method for
characterizing
performance
Performance
Expectations
The desired
condition or
target level of
performance
Performance
Results
The actual
condition or
performance
level
EVALUATION & FEEDBACK

8. However, these objectives are often far from being realized and, in worst cases, are
actually deteriorating employee motivations only because our people (employees,
supervisors, and senior managers) do not take performance management seriously!
Before we put a performance management system into practice, we need to put some sort
of a framework in motion. For example:
 A statement of desired results for the organization (or the activity)
 A quantitative method for characterizing performance
 The desired condition or target level of performance
 The actual condition or performance level.
The Pitfalls Where do we go wrong? Pitfalls with most Performance Management
System (PMS) can be found in one or more of the following areas but with different
intensity: Divergent Goals and Purposes; Performance Appraisal Forms; Implementation;
and Appraiser (i.e., the Supervisor) Skills.
DIVERGENT GOALS AND PURPOSES. Performance management serves two very
broad, but often divergent, goals: Developmental (e.g., to enhance the employee’s
capacity to perform) and Administrative (e.g., to assist in the decisions regarding Merit,
Bonuses, promotions, etc.). These divergent goals serve to undermine the appraisal’s
effectiveness. The employee’s need to protect his/her status in terms of administrative
goals leads to defensiveness and lack of candor that thwarts any attempt to identify
performance issues that address development goals. The Management may address this
problem in two possible ways:
Separate Administrative and Developmental Goals where the Management
conducts two discussions separated by several weeks: A discussion focusing on
performance strengths and improvement areas, creating a developmental action
plan. And a separate discussion focusing on pay increases and bonuses tied to
performance. However, the drawbacks associated with such an approach is that
the separation does little to resolve the candor problem, as the employee is still
aware of the ultimate consequences of the first discussion on the outcome of the
second discussion.
Otherwise, the Management maintains two separate systems:
a) A quantitative, goal-oriented system to focus on what the employee has
accomplished to determine results and compensation
b) An entirely independent, competency-oriented process that addresses how
the employee performs to improve performance through feedback and
developmental initiatives.
The drawbacks of the “Two Separate Systems” fall on three fronts. The Two
Separate Systems can:
 Diminish the capacity to make cause-and-effect connections between (1)
what is or isn’t being accomplished (competency strengths) and (2) why
(improvement areas), or

9.  Hinder promotional decisions since there is no measurable relationship
between (1) meeting or exceeding goals in a lower-level position, and (2)
the skills needed for a higher position, or
 Result in a competencies review that indicates (1) One’s potential for
promotion, but (2) not if the employee is sufficiently goal-driven to
produce results.
PERFORMANCE APPRAISAL FORM. Poorly designed appraisal forms can prevent
good appraisal discussion by including content that is subjective and ambiguous.
Element Such as . . . Potential Failures
Ambiguous, ill-
defined rating
factors
 Making Good
Decisions
 Planning and
Organizing
 Positive Attitude
Forces each manager and employee to decipher
what is intended:
 Does “Good” mean timely, accurate,
logical, or all of these?
 “Planning” and “Organizing” are too
dissimilar, forcing a negative rating for
effective organizer dismal at planning
 “Positive Attitude” is subjective, requiring
personality judgment rather than behavior
assessment
The subjectivity and ambiguity if the form generates performance reviews that lack
validity, and value, and it can, potentially, damage working relationship due to
disagreements over terms. A number of factors may contribute to the making of an
effective appraisal form:
1. Structure. A performance management appraisal form should have at least
four sections, each section providing guidance on a performance
management cycle of planning and reviewing performance, and
conducting the annual appraisal. Here is a brief description of each
section:
Sections Function
Business Goals
A list of what the employee will ideally accomplish
during the appraisal period
Behavior Rating
Rating factors, standards, and competencies that
describe how the employee will go about achieving
goals
Development
Planning
A plan that (a) specifies behavior improvement
goals and development actions from each prior
review, and (b) spells out what the Bank will do for
the employee developmentally during this appraisal
period.
Administrative
Sign-offs showing that (a) the employee received the
appraisal, and (b) the manager acknowledge it.
2. Content. Write clear goals by following this formula: [Action + Object of the
Action + Measurement Methods] Use as many measurement methods
(quality, quantity, cost, time lines, etc.) as possible. For example, a goal

10. could be: “Increase production this year by 10% over last year while keeping the
reject rate to 1:1000 and incurring no overtime.”
3. Rating Factors. Write all competencies, behaviors, and standards of
performance in clear, behavioral terminology: (a) Define terms such as
“effective” so the employee knows what it looks like and what must be
done to improve performance. (b) Avoid long, multidimensional
statements in which an employee performs well on some aspects and
poorly on others.
4. Clear Rating Scales. This calls for attention in rating quantifiable goals,
where you have to use a simple, three-part scale for rating
- Did not meet goals - Met Goals - Exceed goals
and rating behavioral factors where a “Frequency Scale” is preferable in
rating behavioral factors since behaviors are more complex and cannot be
quantified. The frequency scale ranges from “Almost Never” to “Almost
Always” with frequency anchors in between.
5. Performance Management Cycle. A good form ideally drives a continuous
performance management cycle.
Stage Description
Beginning
Employee and manager (i) plan performance, (ii)
set business and developmental goals, and (iii)
clarify behavioral expectations.
Regularly
throughout the
period
Employee and manager keep on track by (i)
reviewing performance, and (ii) discussing areas
where improvement is needed.
End
Employee and manager (i) perform an annual
appraisal by discussing overall performance
(which should be a recap of the year’s discussion),
and (ii) begin the entire cycle over again.
IMPLEMENTATION. Should organizations and employees expect too much from a
Performance Management System? Not really, but ensuring a successful performance
management system implementation is hard work and requires a rigor and discipline to
which most organization aren’t willing to commit. The implementation, or “sell-in”
period, is critical to overcoming opposition to any performance management system that
is new. Successful implementation of a new performance management system requires
that you emphasize the benefits, and minimize any negative factor. Moving along to
implementation; a new performance management system need to be introduced with this
spirit in mind:
 Emphasize that a good system can always be made better.
 Talk about the benefits of the system; inform people what’s in it for them.
 Totally commit to the new system for the full performance management
cycle.
 Adjust the system during subsequent cycles based on the “experienced” input
of all key participants.
We advocate a process involving a knowledge buildup, followed by What’s-In-It-For-Me
questions:

11. Stage Descriptions Key Tasks
Knowledge
Buildup
Review the system in-depth, citing its (i)
features, (ii) functions (how it works), and
(iii) benefits (what’s in it for the people to
participate)
Communication: Making the
business case
Accountability: Clear roles
and accountabilities for all key
stakeholders, starting with the
Chairman
Skill: Skill development for all
involved
Alignment: Aligned systems to
reinforce the desired behaviors
Clear Measurement: The use
of lead and lag measures
What’s In It
For Me (or
Self-
Discovery)
Conclude the briefing (i) What do you see as
the positives of this process? (ii) How might
you benefit? (iii) What’s the down side of
not doing performance review? Having
employees publicly express their views on
the positive aspects of the system: increases
receptivity, and enhances commitment and
implementation.
APPRAISER SKILLS Good appraisals by a manager helps employees understand what’s
expected and how their performance will be appraised (How they are performing? How
they improve?); and motivates employees to fulfill their performance and improvement
goals. The process generates understanding and commitment, which together increases
employee productivity. Too many managers, however, lack the appraisal skills for
educational and motivational purposes. Many managers/supervisors:
 Merely tell employees how they have performed.
 Deliver positive feedback with phrases like “Good work” or “Nice job” that are too
general to educate or motivate
 Manage negative feedback by either issuing it summarily, or avoiding it completely.
However, an effective performance appraisal review is one that is open and collaborative.
With practice, every manager can function like a coach (or mentor) and conduct an
effective appraisal session by following this five-step COACH format:
 Create a positive climate by being appropriately sociable at the outset; you need
to state the purpose and benefits of the meeting; and outline the agenda of the
meeting.
 Obtain the employee’s views. Performance appraisal should promote self-
discovery by obtaining information from the employee on how he/she sees their
performance.
 Add your views, using the ABCs of feedback. That is, (i) Actionable [Addresses
aspects of performance that the employee can do something about immediately],
(ii) Balanced [Provide some positive and some negative feedback], and (iii)
Constructive [Focus on the Behavior you observe]
 Clarify and Resolve Disagreements. Appraisal discussions can sometimes lead to
disagreements and emotional reactions, such as anger or passive aggressiveness.
When this occurs, employ a problem-solving process to resolve any
disagreements.
 Help Develop an Action Plan is critical to the appraisal process because it focuses
on the future – building the strengths and addressing the developmental needs of
the employee: (a) Define an explicit goal: The skill or performance area to be
improved, and by when; (b) Develop a series of action steps that spells out what

12. the employee will do, and the manager will do to achieve the goal; and (c)
Establish a follow-up date with the employee to review progress and
accomplishments relative to the plan.
By acting as a coach during the performance appraisal, the manager promotes the
employee’s self-discovery of performance strengths and improvement areas; clearly
establishes what the employee needs to do to enhance performance; and produces a
shared understanding and commitment to greater productivity.
WRAP UP
There are no bullet-proof performance management systems; but there are a number of
steps that must be taken to maximize the potential benefits that can be derived from a
credible performance appraisal review. Where does one start? Below is a design to put
things in perspective as a wrap up for our journey in the world of Performance
Measurements and Management.
In few words, a performance-based management process consists of a performance
program, a performance measurement system, establishing accountability for
performance, data collection, data analysis & reporting, and improvement. The need to
combine measurement to management in handling this critical task of performance
review and monitoring, the table below is designed to take you through the details of
every step in the construction of a Performance Management System (PMS).
Steps in Performance
Management System (PMS)
Brief Description It entails . . .
Step 1
Linking Performance
Management System (PMS)
activities and outputs to
strategic objectives
Confirm PMS Role:
Why is PMP relevant
to the strategic
objectives?
 Specify main activities or outputs of program.
 For each activity, which one contributes
to/Detract from a strategic objective.
 Specify the strategic objectives or outcomes to
which the PMP activity or output contributes.
Step 2
Identifying the key program
activities and outputs
Identify the PMS
Activities and
Outputs
 Rank in order of significance Program
Activities and outputs with respect to the
contribution to Strategic Objectives (from Step 1)
Step 3
Identifying key issues and
affected stakeholders
Identify program
stakeholders and
issues: Who do you
want to reach?
 Main program activities and outputs in order
of significance (from Step 2)
 Key Issues: Desired/undesired program effects
which correspond to each activity/output
 Affected Stakeholder Groups (Favorably and
otherwise)
Establishing and
Maintaining a
Performance-Based
Management
Program 1
Establishing an
Integrated
Performance
Measurement
System 2
Establishing
Accountability for
Performance
3
Collecting
Data to assess
Performance
4
Analyzing,
Reviewing and
Reporting
Performance Data
5
Using
Performance
Information to
Drive
Improvement 6
Performance-Based Management
Process Model

13. Continues
Steps in Performance
Management System (PMS)
Brief Description It entails . . .
Step 4
Defining Results
Identify what the
program aims to
accomplish: What
results do you expect
to achieve?
 Main program activities and outputs in order
of importance (from Step 2)
 Desired Results (Objectives): Long-Term
strategic, ad Intermediate term objectives as it
corresponds to each activity/output
Step 5
Performance Requirements
Relative to Responses and
Results
Identify Responses
and Performance
Requirements: How
are you going to
achieve your
objectives?
 The Objectives (from Step 4)
 New or modified activities, outputs or other
program responses necessary to achieve the
objectives (from Step 4)
 Performance requirements relative to each
activity, output or other responses necessary to
achieve the desired results (Targets)
Step 6
Establishing Potential
Performance Measures
Identify potential
Performance
Measures
 Objectives (from Step 4)
 Activities, outputs or other program responses
(from Step 5)
 Performance requirements (Targets from Step
5)
 Potential Performance Measures
Step 7
Establishing Baselines for
Measures
Establish
information
capabilities and a
baselines for each
measure
 Potential Performance Measures (from Step
6)
 Units of measurements
 Initial or Baseline value
Step 8
Screening Tool for Quality
Considerations
Assess the Adequacy
of Performance
Measures Quality
Considerations
 Performance Measures
 Meaningful (Understandable, relevant,
Comparable, Reliable, Practical)
 Measures Satisfies Quality Criteria
Step 9
Establishing Accountability
for Implementation
Establish
Accountability for
Implementation
 Program Objectives (from Step 4)
 Responsible staff for achieving objectives
 Activities, outputs or other responses
necessary to meet objectives (from Step 5)
 Responsible staff for managing activities or
outputs and meeting the requirements
 Performance Measures (from Step 8)
 Responsible staff for evaluating measures
Initially, each one of these steps ought to be handled as a separate project by itself. And
the careful completion of Steps 1 through 9 shall deliver a comprehensive Performance
Management System (PMS) that contributes significantly to organizational effectiveness.
If your organization will take the time and efforts required to rigorously address each of
these fundamental system components, you will greatly enhance the effectiveness of your
performance management system. Will it take a lot of efforts? Absolutely! Are the efforts
worth it? Definitely! Performance management is a system that affects everyone in the
organization. It helps the organization achieve desired business results and maintain its
desired culture. It helps employees understand how they are contributing to the
organization’s goals, what’s expected of them, how they are doing, and how they can
continue to grow, develop, and add value to the business.