What is Performance Management?

Mar 19, 2019

What is Performance Management?

Businesses that are able to optimize employee performance through performance management technology often thrive in the services industry. However, it is common to have large distributed workforces engaged in a variety of disparate objectives that can lead to employees losing sight of company goals.

Today, organizational performance management systems are meant to more effectively track, review, and support individual workers and drive results in the fast-paced business environment. When implemented well, these systems create actionable insights that align the focus of your individual employees with your strategic vision.

The first step is to better understand performance management and how it can help you strengthen employees in ways that have widespread benefits.

Modern Organizational Performance Management

The concept of performance management has existed for decades, helping companies evaluate their employees and better understand the true value of individuals. However, modern organizational performance management goes beyond grading and works to understand what motivates workers to help them perform to the best of their abilities and identify opportunities for growth.

Effective performance management can help boost your workforce and leverage them in ways that significantly contribute to the company’s larger strategy and quantifiable goals. An organizational performance management system will analyze employee utilization, profit margins, company growth, and more to understand where performance may be lagging behind set goals and identify superstars within the company.

These insights help create a shared view of company strategy, which can be broken down into actionable insights that drive defined goals for the company. Managers can communicate strategies to their teams and then oversee their execution within daily tasks. These tasks are then evaluated against the goals and strategies of the company. Doing so means that it’s not just employees who are evaluated, but the worth of these various tasks themselves. Did the employee perform well in his or her duties? Did the task fall in line with larger strategy and push the company closer to a quantifiable goal?

A successful performance management solution will help managers determine all of this and more for continued fine tuning of both workers and the projects that they are assigned.

Why Use Operational Performance Management?

Every services business has unique strategies and goals that drive the company forward. And while each team member should be focused on helping their business achieve these goals, most end users don’t understand how they affect the bottom line.Resource management applications put everything at our fingertips, but actionable data often remains locked up in BI tools or analytics reports.

A strong operational performance management system means that today’s services businesses can use tried and true tactics supported by data insights that influence human behavior for more effective workforces. When combined with effective strategies and quantifiable goals, the result is a streamlined business.

Unlock Better Performance with Mavenlink

Modern performance management puts goal achievement into individuals’ hands. Through Mavenlink’s Objectives and Key Results (OKR) enabler, your business can take the fear out of time tracking through greater transparency on both an individual and organizational level. Mavenlink’s operational performance management enables individuals to drive career advancement and helps businesses collect feedback from the workforce. Together, these insights aid both employees and their companies excel in the ways they truly want.

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