FACTS ABOUT PERFORMANCE MANAGEMENT
The most challenging aspect related to improving performance is building the right culture and implementing the improvement initiatives.
80% of professionals claim to have noticed a positive effect in their organizations after implementing KPIs.
29% of professionals interviewed claim that their organization has at least one data analyst responsible with processing performance data.
34% of professionals state that data modelling and predictive analytics are commonly used in their organizations to generate valuable information from data oceans. However, most professionals (62%) rely on traditional root-cause analysis performed by upper management.
63% of organizations have quarterly or monthly meetings to review performance results.
27% of professionals feel like in their organizations decisions rely more on instinct than on data. (The KPI Institute, State of Performance Improvement and KPIs, 2016)
36% of organizations are practicing unilateral decision making, meaning decisions are taken top-down – the leader makes decisions alone, without consultations. (Harvard Business Review, 2017)
Most performance improvements professionals suggested in reference to their current performance management systems, relate to employee performance measurement and evaluations and optimizing the performance management software used. (The KPI Institute, State of Performance Improvement and KPIs, 2016)
Performance management is among the most recent disciplines developed in business management, despite the fact that measurement is a process as old as time for the humanity. Performance management has evolved side by side with strategy and quality management. Critics may even argue the necessity to consider performance management a self-standing discipline, when in fact many of its methods and tools are part of other related disciplines. Given the increased complexity of business environments and the transition from a manufacturing based economy to a knowledge and experience based economy, specialization has become no longer an exception but the norm. Regardless of the domain, it can be noticed that niche subject matter experts arise continually. Similarly, as competition becomes more aggressive, clients more sophisticated, information and technology more accessible, managing a business goes beyond the traditional management capabilities (finance, human resources, procurement, sales etc.). The Performance Management Office stands nowadays, side by side with other key functional areas.