A company can direct its efforts to achieve all its objectives by implementing this strategy that will increase performance.
As a CEO or manager, you face the challenges of budget management, resource management, prioritization, and decision-making. In your daily exercise, you ask yourself a series of questions. And the answers set the direction of the strategies to be adopted in the immediate future of your organization.
This series of challenges and decisions are linked to practically every area of the company. Who and how has determined the objectives? What are the indicators to observe before deciding? What method is used to obtain the information to be analyzed?
Starting with a Performance Management system
Increasing the level of effectiveness, taking advantage of all the resources and identifying the areas of opportunity that will make it possible to face current and future challenges, is it possible? Totally. An adequate implementation of the correct Performance Management solution by experts guarantees a first foundation towards this objective.
A Performance Management system: it is the key to obtaining the information that will allow us to analyze the performance of our organization and, based on it, ask the necessary questions, make decisions and establish actions that:
- Boost what’s working.
- Eliminate or reduce unnecessary expenses.
- Propose new investment projects.
- Reduce the risks that the organization faces.
The PM is an integrated system of methodologies, metrics and processes that allows knowing and monitoring the performance of an organization in real time to establish preventive, predictive, and corrective measures that obtain the expected results.
An Integrated Performance Management System rests on at least 5 key parameters:
Strategic Plan and your feedback: the way to create and lead a consistent and coherent business. Creating an organizational culture based on performance requires facing the KPI’s to real facts
Key Performance Indicator (KPIs): consists of choosing essential data and metrics to understand those parameters that we want to control. Here you can enter ROI, EBITDA, productivity, customer satisfaction, etc.
Results system in real time of processes: from the comparison of activities and available resources with respect to the estimated KPIs, the obtained deviations and the reasons for these deviations are analyzed.
Performance culture system: If the mindset, practice and results of the organization are aligned, the results are excellent. This system analyzes this anatomy.
Employee performance management system: it is the observation of those elements that involve and retain employees.
Organizations with committed employees can increase their performance by 200%, reduce accidents by 50%, and achieve an 87% lower probability of churn.
How to raise performance based on a Performance Management system
Performance Management helps raise the performance of the organization through a series of stages aimed at the constant improvement of the most basic management procedures. The formula to streamline the administration of activities is based on five essential elements:
1. Analysis
Here the organization makes a clear mapping of current processes and those to be implemented in the near future. It requires defining tasks to be carried out, the process to be followed, the people involved and responsible for each process, and the monitoring and control methods.
2. Design
The previous analysis sets the precedent for the design of new processes focused on specific desired objectives according to the resources available in the company.
3. Execution
Now that the new processes are underway, constant monitoring is essential to identify faults and in this case, correct them.
4. Evaluation
The information obtained must be compared with the goals set and thus know if the processes are carried out correctly to satisfy the expected results.
5. Optimization
It is time to implement improvements in the parts of the process in which there were major failures or variations to optimize the execution of the processes.
The strategy after the implementation of the PM should include the most important performance indicators for the company. Continuous monitoring will make it easier to diagnose your condition and make the pertinent modifications.
TELNORM has not only the best performing technological solutions in WFM and PM, but also a solid experience to lead an organization towards the definition of KPIs and their measurement to palpably increase the performance of customer service and back office areas, increasing profits, reducing costs and making the most of material and human resources.
Ready for the next step? Contact us, let’s grow your business.