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Transforming Performance Management

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Executive Summary

How good is one's performance management system? Does it provide one's senior executives with the early warning signals of poor results or leave them facing angry shareholders? Does it encourage managers to strive for maximum potential performance or reward them for negotiating "Comfortable" targets and playing the political game? Does it ensure that all resources enhance rather than destroy shareholder value? Does it support a culture of local decision-making, openness and knowledge sharing, or leave managers feeling impotent and frustrated? And does it add value to all its users or just waste vast amounts of their time? A good performance management system is key to winning in the knowledge economy, yet most companies know that their existing systems were designed for a competitive era that is fast becoming a distant memory.

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