Performance Management Systems (PMS's) are
potentially the most powerful tool available to Entrepreneur's, chief Executives,
Directors and Senior Managers of SME Businesses today. Despite this fact, PMS's are also, perhaps, one of the most under-utilised management tools.
Used correctly, they can facilitate improved analysis of current and potential performance and a foundational framework for managing future growth and performance.
Our research and experience to date indicates that some of the reasons for their apparent lack of use include:-
A lack of published material surrounding real insight into successful implementations of PMS's may be a major contributory factor in the lack of widespread PMS deployment within the SME sector.
Whatever the reason, there can be no doubt that World Class companies have an inbuilt mechanism for Planning, Measuring, Reviewing and Managing Performance (which we term a Performance Management System)
PROCESS RE-ENGINEERING
Identify core business processes; document and review them; eliminate waste and re-engineer for success, growth & flexibility; understand activity drivers, non-value added tasks; ask Why Why Why ?
ORGANISATION STRUCTURE
Ensure the optimum level of structure:strategy fit; optimise task vs people focus; ensure Team takes precedence over Ego; essential for senior managers to be thinkers, planners, organisers & doers.
SCORECARD CULTURE
Select KPI's which will improve processes; create a scorecard framework driven by single company wide data sets; formalise performance reviews; built on the tenet of Measure, Analyse, Improve, Control.
SHORT INTERVAL CONTROL
Formalised performance reviews for all core processes; formalise Action - Plan - Review mechanisms; published, transparent outputs); empowerment via ownership & accountability; control intervals pertinent to process, KPI selection and purpose of control.