Examples of Organizational Performance Management Systems

8/8/2019 Examples of Organizational Performance Management Systems

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Examples of Organizational Performance Management

Systems

There are numerous, major methods and movements to regularly increase the

performance of organizations. Each includes regular recurring activities to establishorganizational goals, monitor progress toward the goals, and make adjustments to achieve

those goals more effectively and efficiently. Typically, these become integrated into theoverall recurring management systems in the organization (as opposed to being used

primarily in one-time projects for change -- see Organizational Change and Development

to Improve Performancelater on below).

Any or all of the following approaches will improve organizational performance

depending on if they are implemented comprehensively and remain focused onorganizational results. Some of the following, e.g., organizational learning and

knowledge management, might be interpreted more as movements than organization

performance strategies because there are wide interpretations of the concepts, not all ofwhich include focusing on achieving top-level organizational results. However, if thesetwo concepts are instilled across the organization and focus on organizational results,

they contribute strongly to organizational performance. On the other hand, the Balanced

Scorecard, which is deliberately designed to be comprehensive and focused onorganizational results, will not improve performance if not implemented from a strong

design.

The following descriptions are general and brief. Follow the link to get more information

about each of the approaches.

NOTE: There certainly are other approaches than those listed below for a planned,comprehensive approach to increasing organizational performance. It may very well be

that the vast majority of approaches used in organizations are highly customized to the

nature of the organizations, and therefore not publicized or formalized in managementliterature.

Balanced Scorecard: Focuses on four indicators, including customer perspective, internal-

business processes, learning and growth and financials, to monitor progress towardorganization's strategic goals

Benchmarking: Using standard measurements in a service or industry for comparison to

other organizations in order to gain perspective on organizational performance. Forexample, there are emerging standard benchmarks for universities, hospitals, etc. In andof itself, this is not an overall comprehensive process assured to improve performance,

rather the results from benchmark comparisons can be used in more overall processes.

Benchmarking is often perceived as a quality initiative.
http://managementhelp.org/org_perf/org_perf.htm#anchor125028http://managementhelp.org/org_perf/org_perf.htm#anchor125028http://managementhelp.org/org_perf/org_perf.htm#anchor125028http://www.managementhelp.org/org_perf/bal_card.htmhttp://www.managementhelp.org/quality/bnchmrkg/bnchmrkg.htmhttp://managementhelp.org/org_perf/org_perf.htm#anchor125028http://managementhelp.org/org_perf/org_perf.htm#anchor125028http://www.managementhelp.org/org_perf/bal_card.htmhttp://www.managementhelp.org/quality/bnchmrkg/bnchmrkg.htm


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Business Process Reengineering: Aims to increase performance by radically re-designing

the organization's structures and processes, including by starting over from the ground

up.

Continuous Improvement: Focuses on improving customer satisfaction through

continuous and incremental improvements to processes, including by removingunnecessary activities and variations. Continuous improvement is often perceived as a

quality initiative.

Cultural Change:Cultural change is a form of organizational transformation, that is,

radical and fundamental form of change. Cultural change involves changing the basic

values, norms, beliefs, etc., among members of the organization.

ISO9000: Is an internationally recognized standard of quality, and includes guidelines toaccomplish the ISO9000 standard. Organizations can be optionally audited to earn

ISO9000 certification. Another major quality standard is the Baldridge Award. ISO9000

is a quality initiative.

Knowledge Management: Focuses on collection and management of critical knowledgein an organization to increase its capacity for achieving results. Knowledge management

often includes extensive use of computer technology. In and of itself, this is not an

overall comprehensive process assured to improve performance. Its effectiveness towardreaching overall results for the organization depends on how well the enhanced, critical

knowledge is applied in the organization.

Learning Organization: Focuses on enhancing organizations systems (including people)

to increase an organization's capacity for performance. Includes extensive use of

principles of systems theory. In and of itself, this is not an overall comprehensive processassured to improve performance. Its effectiveness toward reaching overall results for the

organization depends on how well the enhanced ability to learn is applied in theorganization.

Management by Objectives (MBO): Aims to align goals and subordinate objectives

throughout the organization. Ideally, employees get strong input to identifying their

objectives, time lines for completion, etc. Includes ongoing tracking and feedback inprocess to reach objectives. MBO's are often perceived as a form of planning.

Outcome-Based Evaluation (particularly for nonprofits): Outcomes-based evaluation is

increasingly used, particularly by nonprofit organizations, to assess the impact of theirservices and products on their target communities. The process includes identifyingpreferred outcomes to accomplish with a certain target market, associate indicators as

measures for each of those outcomes and then carry out the measures to assess the extent

of outcomes reached.
http://www.managementhelp.org/org_perf/re_engng.htmhttp://www.managementhelp.org/quality/cont_imp/cont_imp.htmhttp://www.managementhelp.org/org_perf/culture.htmhttp://www.managementhelp.org/org_perf/culture.htmhttp://www.managementhelp.org/quality/iso9000/iso9000.htmhttp://www.quality.nist.gov/http://www.quality.nist.gov/http://www.managementhelp.org/org_perf/know_mng.htmhttp://www.managementhelp.org/org_perf/org_lrng.htmhttp://www.managementhelp.org/plan_dec/mbo/mbo.htmhttp://www.managementhelp.org/orgnzing/orgnzing.htmhttp://www.managementhelp.org/org_perf/re_engng.htmhttp://www.managementhelp.org/quality/cont_imp/cont_imp.htmhttp://www.managementhelp.org/org_perf/culture.htmhttp://www.managementhelp.org/quality/iso9000/iso9000.htmhttp://www.quality.nist.gov/http://www.managementhelp.org/org_perf/know_mng.htmhttp://www.managementhelp.org/org_perf/org_lrng.htmhttp://www.managementhelp.org/plan_dec/mbo/mbo.htmhttp://www.managementhelp.org/orgnzing/orgnzing.htm


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Program Evaluation: Program evaluation is used for a wide variety of applications, e.g.,

to increase efficiencies of program processes and thereby cut costs, to assess if program

goals were reached or not, to quality programs for accreditation, etc.

Strategic Planning: Organization-wide process to identify strategic direction, including

vision, mission, values and overall goals. Direction is pursued by implementingassociated action plans, including multi-level goals, objectives, time lines and

responsibilities. Strategic planning is, of course, a form of planning.

Total Quality Management (TQM): Set of management practices throughout the

organization to ensure the organization consistently meets or exceeds customer

requirements. Strong focus on process measurement and controls as means of continuous

improvement. TQM is a quality initiative.

NOTE: There are various other approaches that, if used comprehensively with strong

focus on achieving organizational results, can be used to increase organizational

performance, e.g., Statistical Process Control,Quality Circles,best practices, etc.

Organizational Assessments

When seeking to improve the performance of an organization, it's very helpful toregularly conduct assessments of the current performance of the organization.

Assessments might be planned, systematic and explicit (these often are the best kinds of

assessments) or unplanned and implicit. Well-done assessments typically use tools, suchas comprehensive questionnaires, SWOT analyses, diagnostic models (we often use these

models without recognizing or referring to them as such), etc., along with comparison of

results to various "best practices" or industry standards. The following tools might be

useful to you.

Organizational Assessments (For-Profits)

Selecting from Among Publicly Available Assessments

Read more about online toolsthat include suggested "best practices" against which to

compare results of your assessment.Minimizing Bias in Organizational Surveys: Guidance for the Practical Researcher

Organizational Health Survey

Founder's Syndrome -- How Organizations Suffer -- and Can Recover
http://www.managementhelp.org/orgnzing/orgnzing.htmhttp://www.managementhelp.org/plan_dec/str_plan/str_plan.htmhttp://www.managementhelp.org/quality/tqm/tqm.htmhttp://www.margaret.net/spc/http://www.qualitycircles.com/QCHome/Home.htmlhttp://www.qualitycircles.com/QCHome/Home.htmlhttp://www.apqc.org/portal/apqc/site/generic%3Bjsessionid%3DRD43QI0XMGMUDQFIAJICFEQ?path=/site/benchmarking/overview.jhtmlhttp://www.apqc.org/portal/apqc/site/generic%3Bjsessionid%3DRD43QI0XMGMUDQFIAJICFEQ?path=/site/benchmarking/overview.jhtmlhttp://www.managementhelp.org/misc/selecting-public-assessments.pdfhttp://www.managementhelp.org/aboutfml/diagnostics.htmhttp://www.managementhelp.org/aboutfml/diagnostics.htmhttp://e-articles.info/e/a/title/Minimizing-Bias-in-Organizational-Surveys:-Guidance-for-the-Practical-Researcher/http://www.od-online.com/toxic_org.asp?redirect=htmhttp://www.managementhelp.org/misc/founders.htmhttp://www.managementhelp.org/orgnzing/orgnzing.htmhttp://www.managementhelp.org/plan_dec/str_plan/str_plan.htmhttp://www.managementhelp.org/quality/tqm/tqm.htmhttp://www.margaret.net/spc/http://www.qualitycircles.com/QCHome/Home.htmlhttp://www.apqc.org/portal/apqc/site/generic%3Bjsessionid%3DRD43QI0XMGMUDQFIAJICFEQ?path=/site/benchmarking/overview.jhtmlhttp://www.managementhelp.org/misc/selecting-public-assessments.pdfhttp://www.managementhelp.org/aboutfml/diagnostics.htmhttp://e-articles.info/e/a/title/Minimizing-Bias-in-Organizational-Surveys:-Guidance-for-the-Practical-Researcher/http://www.od-online.com/toxic_org.asp?redirect=htmhttp://www.managementhelp.org/misc/founders.htm


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The following links are to additional assessments, and include information about what

should really be measured -- performance.

A Study of New Zealand Business Practices and PerformanceThe Balanced Scorecard and the Small Business

Small Business Owner/Operator Competency Guidelines

Competencies and managerial effectiveness: putting competencies to work

Organizational Assessments (Nonprofits)

Selecting from Among Publicly Available Assessments

1. United Way Management Indicators List

(This is a comprehensive, behaviors-based tool that also includes a suggested

"best-practices" standard, as well.)Go to http://www.managementhelp.org/org_eval/uw_list.htm

(There are online, modified versions of this tool available here.)

2. Drucker Five-Question Self-Assessment Tool(Guru, Peter Drucker, suggests five, overall, primary questions that must be

answered about any organization. There is a detailed workbook that can be bought

in order to guide the reader to answer the questions. For now, you might considerthe five key questions.)

3. Minnesota Council of Nonprofits "Principles and Practices"

(This is widely recognize, comprehensive, principles-based assessment tool thatsuggests principles for effectiveness in many of the major functions in

nonprofits.)

4. Maryland Association of Nonprofit Organizations "Standards of Excellence"

(This is a widely recognized, principles-based assessment tool that suggests

principles for effectiveness in many of the major functions in nonprofits.)5. Assessment for Start-Up Organizations

From LaPiana Associates, this6. Fieldstone's Nonprofit Life-Stage Assessment

(Includes descriptions of the various life cycles of nonprofits, and associates

recommendations ("best practices"?) to address each)

Also see:

Capacity Building (nonprofits)

Outcomes-Based Evaluation

Program EvaluationDesigning Assessment and Evaluation ToolsOne Organizational Diagnostic Model (depicts system and subsystems, and which causes

issues in others)
http://www.med.govt.nz/irdev/ind_dev/firm-foundations/firm-foundations.pdf%20http://www.accaglobal.com/students/student_accountant/archive/2000/8/44014http://www.docstoc.com/docs/19783963/Small-Business-OwnerOperator-Competency-Guidelineshttp://www.entrepreneur.com/tradejournals/article/20615899.htmlhttp://www.managementhelp.org/misc/selecting-public-assessments.pdfhttp://www.managementhelp.org/org_eval/uw_list.htmhttp://www.managementhelp.org/aboutfml/diagnostics.htmhttp://www.pfdf.org/leaderbooks/sat/process.htmlhttp://www.mncn.org/info_principles.htmhttp://www.marylandnonprofits.org/html/standards/04_02.asphttp://www.lapiana.org/downloads/Start-Up_Assessment_Tool.pdfhttp://surveys.wilder.org/fieldstone/lifestages/http://www.managementhelp.org/org_perf/capacity.htmhttp://www.unitedway.org/outcomes/http://www.managementhelp.org/evaluatn/fnl_eval.htmhttp://www.managementhelp.org/misc/designing-eval-assess.pdfhttp://www.managementhelp.org/misc/orgl-diagnostic-model.pdfhttp://www.managementhelp.org/misc/orgl-diagnostic-model.pdfhttp://www.med.govt.nz/irdev/ind_dev/firm-foundations/firm-foundations.pdf%20http://www.accaglobal.com/students/student_accountant/archive/2000/8/44014http://www.docstoc.com/docs/19783963/Small-Business-OwnerOperator-Competency-Guidelineshttp://www.entrepreneur.com/tradejournals/article/20615899.htmlhttp://www.managementhelp.org/misc/selecting-public-assessments.pdfhttp://www.managementhelp.org/org_eval/uw_list.htmhttp://www.managementhelp.org/aboutfml/diagnostics.htmhttp://www.pfdf.org/leaderbooks/sat/process.htmlhttp://www.mncn.org/info_principles.htmhttp://www.marylandnonprofits.org/html/standards/04_02.asphttp://www.lapiana.org/downloads/Start-Up_Assessment_Tool.pdfhttp://surveys.wilder.org/fieldstone/lifestages/http://www.managementhelp.org/org_perf/capacity.htmhttp://www.unitedway.org/outcomes/http://www.managementhelp.org/evaluatn/fnl_eval.htmhttp://www.managementhelp.org/misc/designing-eval-assess.pdfhttp://www.managementhelp.org/misc/orgl-diagnostic-model.pdfhttp://www.managementhelp.org/misc/orgl-diagnostic-model.pdf


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SWOT Analysis (looking at strengths, weaknesses, opportunities andthreats)

Looking at Strength's, Weaknesses, Opportunities and Threats (SWOT)

Organizational Diagnostic Models

Once you've conducted assessments of your organization, whether explicitly or

implicitly, it helps to have some basis by which to analyze the results. Diagnostic modelscan provide that basis. There are differing opinions about diagnostic models. Some

people suggest that these models should come without bias or suggested solutions, and

should be used to accomplish an objective, unfolding understanding of organizations.

Others believe that models should suggest:1. What types of practices should be occurring in the organization.

2. The order in which those practices should be occurring.

3. Standards of performance for various domains, such as individual positions, teams,

projects, processes, functions, programs and the organization.Thus, a diagnostic model can be useful in an organizational change effort to:

1. Analyze results of data collection.2. Identify issues that should be addressed by the organizational change effort.

3. Suggest what actions should be taken to address the issues.

4. Evaluate the success of the organizational change effort.There are numerous organizational diagnostic models available, depending on one's

beliefs on what the roles of the models should be. Below are two examples. (NOTE:

Many of the systems mentioned later on below can be used as diagnostic tools.)

A Diagnostic Model for For-Profit OrganizationsA Diagnostic Model for Nonprofit Organizations

Maximum Performance -- Different Things to Different People

Methods of Strategic / Organizational Analysis

Setting performance objectives per employee is an important part of task management

which allows to achieve Strategic Goal by dividing it into a number of sub-goals. Theteam leader or manager must do some steps to set individual performance objectives:

Appoint and conduct meeting with each employee to describe his/her job and

tasks

Create and address a list of responsibilities to the employee

Develop adequate individual performance objectives according to the employee's

major functions and responsibilities
http://www.managementhelp.org/plan_dec/str_plan/str_plan.htm#anchor954715http://www.managementhelp.org/misc/orgl-diagnostic-model.pdfhttp://www.managementhelp.org/misc/np-orgl-diagnostic-model.pdfhttp://www.managementhelp.org/misc/perf-diff-to-people.pdfhttp://managementhelp.org/blogs/training-and-development/2010/05/30/methods-of-strategicorganizational-analysis/http://www.managementhelp.org/plan_dec/str_plan/str_plan.htm#anchor954715http://www.managementhelp.org/misc/orgl-diagnostic-model.pdfhttp://www.managementhelp.org/misc/np-orgl-diagnostic-model.pdfhttp://www.managementhelp.org/misc/perf-diff-to-people.pdfhttp://managementhelp.org/blogs/training-and-development/2010/05/30/methods-of-strategicorganizational-analysis/


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The individual performance objectives must be based on information that is collected for

management purposes and during the planning process.

VIP Task Manager is task management software which helps to set individualperformance objectives and evaluate task performance per employee. WithVIP Task

Manager you can maintain appraisal activity and you develop performance objectivesthat are achievable, flexible, timely and rewarded. VIP Task Manager helps describe the

desired results, provides direction and purpose, and defines measure and standard forperformance. All these deliver improved performance.

Action plan:

Start VIP Task Manager

Create a task, use 'Notes' and 'Comments' tab to word individual performance goal

Assign the task to an employee

If needed, attach documentation to the task

Set deadlines by using due date, start/finish dates, estimated and actual time Press Ok to save all changes

Note: use Custom field feature to specify qualitative and descriptive part of the individual

performance objectives.
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Documents

Examples of Organizational Performance Management Systems