iPM Locating the missing link in the process
2006 - Convergence - Peter Geelen
Performance management has really taken off over the last few years. New methods of management, like the balanced scorecard or TQM models, have made a positive contribution to this. There is more and more scientific proof that organizations with proper performance management systems outperform organizations without them. However, implementing performance management is not an easy job, and we still see many failures. These failures are mainly due to a lack of acceptance and the missing link to primary processes. integral Performance Management (iPM) might be the right answer to overcome these failures.
The central idea behind iPM is direct improvement of company performance by an explicit link between strategic objectives with primary processes and to create a culture of continuous improvement. Five steps have to be carried out to implement iPM. These can be found in the article.
Advantages of iPM are:
- iPM links processes to customer needs and, consequently, is customer-focused.
- iPM creates focus in the organization – firstly, by reducing the number of objectives and, secondly, by focusing on the relevant processes.
- Employees are involved from the start, which increases acceptance. They determine the best performance indicators and improvement initiatives to measure the success and improve the performance of their job.
- Process performance indicators will be of a more direct nature and, consequently, will be measurable more frequently. Frequencies of performance (and operational) indicators can vary from minutes to weeks or months.
- iPM eliminates functional boundary or stovepipe thinking; stating priorities (which processes first) is also possible.
- Initiative management offers a structural approach for process improvement, which allows you to overview and control your initiatives and ensures that finances are only channelled to those initiatives that contribute to strategic objectives.
- The process orientation of iPM lowers the barrier for an organization to introduce activity-based management and it provides a basis that is also required for corporate governance or quality systems.