The Business Case for Corporate Performance Management
1. The Mandate for Performance
Today’s Performance Mandate is based on:
I. The need for performance documentation due to regulatory requirements, to support
employee reviews and/or compensation decisions, and for talent staffing and
management.
II. The need to engage employees to improve productivity, performance, and alignment
with corporate objectives.
III. Consumerism. Employees want access to information. Employees want the same tools
and functionality at work that they have access to at home. This means technology must
be easy to try, buy, use technology.
The Business Case for Engaging the Workforce
A comprehensive review by the Department of Labor of more than
100 studies that examined the link between progressive people
practices and improved bottom line results concluded that there is
a positive relationship between training, motivating, and
engaged employees and improvements in productivity,
employee satisfaction and financial performance.
Highly engaged employee companies enjoy 26% higher
employee productivity, lower turnover, higher talent
attraction, and greater shareholder return10.
Talent management practices power engaged companies
to achieve higher profit per employee by nearly
40%11.
Common Characteristics of High Performance Workforces
Clear goals and plans (connection between daily people performance and financial objectives).
Established communication among members (healthy dialogues).
Develop and maintain positive relationships among members (sense of community).
Solve problems and make decisions on a timely basis (culture of accountability and customer-orientation).
Successfully manage conflict.
Facilitate productive meetings (Time, resources and results sensitive).
Clarify roles for team members.
Operate in a productive manner.
Exhibit effective team leadership.
Provide development opportunities for team members.
Aligned (unified) commitment of vision, mission, and values.
10
see findings in Watson Wyatt’s 2008/2009 WorkUSA Report.
11
as explained in “Why Multinationals Struggle to Manage Talent” from McKinsey.
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