A company’s maturity level is an excellent indicator of the quality of its operations. Thus, maturity assessments are an integral aspect of a company’s growth and development as they provide a comprehensive look at organizational strengths and areas for improvement—something that Doina Popovici knows all too well.

As the Head of Performance Assessment Services at The KPI Institute, Doina coordinates the Global Performance Audit Unit (GPA Unit), the institute’s strategy and performance assessment division. Her work as a performance assessor involves conducting thorough performance management system maturity assessments to provide organizations with actionable recommendations that drive continuous enhancement and strategic alignment. Her experience as a management consultant has allowed her to deliver impactful services to a wide array of clients from different continents.

In addition, Doina has contributed to the development and refinement of The KPI Institute's service offerings. She has been instrumental in creating the Certified Performance Audit Practitioner Portfolio, an advanced certification that validates the skills and applied knowledge of professionals in the field. In this interview, Doina takes us on a deep dive into the world of performance management maturity assessments, touching on various aspects of the process such as roles, best practices, benefits, failure, success, and more.

How do you perceive the current maturity of organizations regarding their strategy and performance management practices? In which areas do you see substantial opportunities for improvement?

Organizations are increasingly focused on improvement, recognizing its importance for long-term success. This commitment is evident even among younger companies, which can achieve high maturity levels by focusing on effective strategic planning and robust performance management practices. With the right dedication and resources, these organizations can enhance their capabilities and drive meaningful progress, demonstrating that a commitment to improvement transcends experience and age.

What are the secret ingredients that differentiate an effective strategy planning process from a redundant one?

The difference between an effective strategy planning process and a redundant one lies not in secret ingredients, but in following consistent steps. Successful strategy planning involves clearly defining objectives, ensuring that the strategy directly supports the mission and vision, conducting thorough analysis, engaging stakeholders, and regularly reviewing progress. By adhering to these structured steps, organizations can ensure their strategy remains relevant and impactful, rather than falling into redundancy. Consistency in execution and a commitment to adapting based on insights are key to achieving meaningful results in strategic planning.

Why does strategy fail so often in organizations? Could you share some lessons learned from your organization/experience?

When teams are not on the same page regarding goals or when there’s a disconnect between leadership and employees, execution falters. Additionally, strategies may be overly complex or too rigid to adapt to changing circumstances, leading to frustration and failure.

In my experience, I’ve learned the importance of regular check-ins and fostering a culture that embraces feedback. Engaging employees in the planning process and ensuring transparency helps build commitment and adaptability, significantly increasing the chances of successful strategy implementation.

What role does performance management play in managing an organization nowadays?

Performance management plays a critical role in today's organizations by aligning individual and team objectives with overall business goals. Effective performance management provides valuable insights through regular feedback and assessment, helping identify strengths and areas for growth. It also supports employee engagement and development, ensuring that talent is nurtured and aligned with organizational goals. In a dynamic business environment, robust performance management facilitates data-driven decision-making, allowing organizations to craft and adapt their strategies based on performance insights.

How can business leaders make better decisions when confronted with so much data and information?

Business leaders can make better decisions in a data-rich environment by adopting a structured approach to data analysis and prioritization. First, they should define clear objectives to focus on relevant data that aligns with strategic goals. Utilizing data visualization tools can help distill complex information into actionable insights. Finally, applying data analysis techniques can help predict trends and simulate various scenarios, enabling informed decision-making.

What practices can senior leadership adopt to develop a culture of performance excellence in organizations?

Senior leadership can cultivate a culture of performance excellence by modeling desired behaviors and setting clear expectations. They should also prioritize open communication, encouraging feedback and dialogue across all levels. Implementing regular performance reviews and recognition programs will reinforce accountability and motivate employees. Providing training and development opportunities empowers staff to enhance their skills and contribute meaningfully to the organization. Leadership should also establish measurable goals aligned with the organization’s vision to foster a unified sense of purpose.

Where should organizations focus more of their attention to achieve performance excellence? Is it in optimizing the performance management system (doing things right at the framework level) or the business results (performance outcomes generated by different processes)?

Organizations should focus on both optimizing the performance management system and improving business results, as they are interrelated. A well-structured performance management system ensures that processes are aligned with strategic goals, providing a solid framework for achieving desired outcomes. However, it's equally important to concentrate on the performance outcomes generated by these processes, as they reflect the effectiveness of the system in delivering tangible results. By striking a balance between enhancing the framework and measuring business outcomes, organizations can achieve performance excellence that is both sustainable and impactful.

What are the short-term and long-term benefits that organizations can gain from participating in the Performance Management System Maturity Assessment?

In the short term, organizations gain a clear and detailed understanding of their current performance management practices. This immediate insight allows them to identify specific strengths and weaknesses within their existing framework, facilitating quick, targeted improvements. These early actions often result in enhanced operational efficiency, better alignment of resources with strategic goals, and improved employee engagement as the organization begins to address identified gaps.

In the long term, the benefits extend beyond these initial gains. As organizations implement the recommendations provided through the maturity assessment, they embark on a continuous improvement journey that gradually elevates their performance management processes to an optimized state. This leads to sustained growth and resilience, as the organization becomes more adept at anticipating challenges, adapting to changes in the business environment, and maintaining a strong alignment between strategy and execution. By participating in the maturity assessment, organizations set the foundation for long-term success and ensure they are well-equipped to navigate future challenges while consistently achieving their strategic objectives.

How can an organization prepare to successfully undertake the maturity assessment?

To successfully undertake a maturity assessment, an organization should start by securing leadership support and aligning teams on the assessment's purpose. Gather relevant documentation, such as policies and procedures, to provide a clear view of current practices. Engage key stakeholders early, ensuring they understand the assessment’s goals and their roles in the process. Additionally, prepare for transparent communication, and ensure that stakeholders are encouraged to actively participate in the surveys for a high response rate as well as to provide honest feedback during interviews. Lastly, be open to the findings by adopting a mindset focused on continuous improvement and long-term growth.

What actions can organizations take to fully leverage the insights and maximize the value gained from your assessment approach?

Organizations can fully leverage insights from maturity assessments by prioritizing open communication of the findings with all stakeholders. Implementing a structured action plan based on the assessment recommendations is crucial, along with setting clear goals and timelines for improvement. Regularly monitoring progress and gathering feedback ensures that adjustments can be made as needed.

For more useful insights on Performance Management and Maturity Assessments click here:

https://kpiinstitute.org/Performance-Magazine-Issue-31-Business-Excellence-Edition.pdf