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The Difference Between Personal Goals and Organizational Performance Measures
Most leaders monitor the performance of their various divisions, departments, and work groups using a system of organizational performance measures. These measures monitor the efficiency and effectiveness of that organization’s functions – a reflection of the responsible manager’s performance.
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About the Author
Nathan Ives is a StrategyDriven Principal and Host of the StrategyDriven Podcast. For over twenty years, he has served as trusted advisor to executives and managers at dozens of Fortune 500 and smaller companies in the areas of management effectiveness, organizational development, and process improvement. To read Nathan’s complete biography, click here.
Organizational performance measure output informs management decisions and drives workforce behaviors. As errant data may result in misdirected effort and highly adverse outcomes, it is extremely important that performance measure output be as accurate as possible.
Change is difficult. Value illusive. Implementation of new organizational performance measures represents both change and sought after value, either of which can render the time and resources spent creating the new measures worthless. Consequently, it is incumbent upon those seeking to introduce the new measures to effectively test for acceptance and value contribution before committing the significant time and resources required for their development and implementation.
Establishing and maintaining and organizational culture supportive of a diverse and inclusive workforce requires deliberate ongoing action communicating the importance of and support for these principles. Consequently, leaders need insight into employee behaviors such that appropriate corrective actions can be taken when necessary as well as visibly reinforcing their commitment to the principles of organizational diversity and inclusiveness. Helping achieve both these goals is a robust performance measurement system specifically tailored to measure the organization’s commitment to being diverse and inclusive.
Just as a well-developed organizational performance measurement system helps align an organization to the efficient achievement of its goals, a misaligned performance measurement system diverts focus and resources toward non-value-adding activities. Over time, existing projects finish and new initiatives begin; requiring performance measures within the system be changed. While these alterations are intended to support continued, effective business operation, they are often performed without a holistic view of the system and may have unintended adverse impacts. Therefore, it is prudent to conduct a holistic performance measurement system evaluation with frequency that is regular enough to minimize the damage misalignment can cause without being so frequent as to become overly burdensome.
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