- Fourteen striking facts, researched by the performance factory
- 15 percent believe the strategy to be wrong for their company.
- Almost all – 94 percent – have indicators that relate not only to fnancials,
but also to customers, processes or people. - Around 1 in 3 – 30 percent – receive no information on how to execute the strategy.
- Only 61 percent is convinced that the strategic initiatives are staffed with the right people.
- As little as 27 percent believe that the strategic initiatives are being managed correctly.
- 27 percent doesn’t receive any individual feedback.
- As many as 17 percent lack leadership objectives.
- 17 percent indicate that performance isn’t monitored.
- 38 percent indicate that poor performers don’t face any consequences.
- More than one third – 37 percent – have never had the opportunity to participate in a 360° skills assessment exercise.
- 18 percent is unable to explain how to set individual objectives.
- 27 percent receives no training on essential management skills.
- 36 percent do not question appraisals objectively.
- Of all managers, 24 percent do not receive any useful strategy information from other departments.
The Strategy Execution Barometer™ 2010
- Less than 10% of strategies effectively formulated are effectively executed. This means that the 10% of organisations that do effectively execute their strategy have a competitive advantage.
2007 Executive Conference:
Putting your people where your strategy is
Creating a High-Performance Organization
- Companies of any size can reap benefits by linking the Balanced Scorecard to compensation. Linking incentives to the BSC:
- forces alignment at all levels of the organisation
- ensures accountability at all levels
- creates a gap between stars and average performers, motivating the latter and making the former feel valued
- identifies and eliminates misalignments between employee behaviour, corporate and personal goals
2007 Executive Conference:
Putting your people where your strategy is
Creating a High-Performance Organization
- Most of the board directors made it clear that they want to devote less time to discussing the latest financial results, and much more to setting strategy, assessing risks, developing new leaders, and monitoring other issues that underpin a company’s long-term health.
The View from the boardroom,
The McKinsey Quarterly 2005 special edition:
Value and performance, pages 48-61
- For a typical business unit, top management and the board should monitor no more than 3 to 5 metrics (kpi‘s), representing different areas of the business for each of the three time frames: short-term, over the next 1-5 years, and long-term.
The McKinsey Quarterly 2005 Number 3, pages 63-71
- Companies realise only 63% of the financial performance their strategies promise because of defects and breakdowns in planning & execution. More than 1/3 placed the figure at less than 50%! So the prize for closing the strategy-to-performance gap is huge: an increase in performance of anywhere from 60% to 100% for most companies.
Harvard Business Review – Fall 2004
- More and more studies prove the positive influence of introducing and using a Performance Management System (PMS) on the results of an organisation. This makes performance management one of the single most important management techniques for taking a company to the next level of performance. Nevertheless, it can go wrong as well − there are also numerous stories about failure. Therefore, companies urgently need people with the necessary expertise to introduce a performance management system.
Controllers Magazine – January/February 2005
- According to studies, 70% of the performance management implementations worldwide end in failure. Developing relevant performance indicators isn’t the main problem − it’s the possibility of making performance management operative within the organisation that causes worries.
Chief Financial Officer – March/April 2005
- The implementation of a performance management system based on the Balanced Scorecard leads to immediate, noticeable improvement of the financial results and a better understanding of the operating model. It also triggers organisational changes in 1 out of 3 companies. Only 5% of the companies studied haven’t noticed any improvements.
Manager & Literatuur, 2002, no. 8.1
- Companies rarely track performance against long-term plans: less than 15% of companies make it a regular practice to go back and compare the business’s results with the performance forecast for each unit in its prior years’ strategic plans.
Harvard Business Review – Fall 2004
- Practise shows that starting small works best. Introduce the basics slowly, start with a pilot and take it from there, one step at a time, across the organisation.
Chief Financial Officer – March/April 2005
- Closing the strategy-to-performance gap: a number of high-performing companies have found ways to realise more of their strategies’ potential:
- keep it simple, make it concrete
- debate assumptions, not forecasts
- use a rigorous framework, speak a common language
- discuss resource deployments early
- identify priorities clearly
- monitor performance continuously
- develop and reward execution capabilities
Harvard Business Review – Fall 2004
- A mere 7% of employees today fully understand their company’s business strategies and what’s expected of them in order to help achieve the company goals.
Driving success: the incredible power of
Company-Wide Goal Alignment
SuccessFactors 2007
- 73% of respondents said that the area where managers needed to improve most was aligning employee goals with those of the or¬ganisation. 72% said managers needed to improve their skills in discussing performance and in performance-related decision-making. And 67% said managers also didn’t handle poor performers well.
Finding the keys to performance management:
a study of current trends and future possibilities
HRI 2006
- Researchers found that employees in the weakest-performing companies did not clearly understand the connection between their individual efforts and the overall goals of their employers. These same employees also reported feeling confused as to their roles at the company, which naturally resulted in unfocused – and therefore less productive – work activity.
Driving success:
the incredible power of Company-Wide Goal Alignment
SuccessFactors 2007
- Senior leaders tend to think they communicate more effectively and act more consistently than their employees think they do. For example, 81% of surveyed managers told Hay researchers that their actions are consistent with their verbal communications, but only 53% of workers thought so.
Finding the keys to performance management:
a study of current trends and future possibilities
HRI 2006
- Only about 20% of workers say their managers coach them regularly to help them improve their performance, and only about 40% say their manager plays an active role in their career development.
Finding the keys to performance management:
a study of current trends and future possibilities
HRI 2006
- 62% of the respondents who had had a formal performance appraisal in the past year expressed a strong sense of commitment to their companies, compared with 49% of those who had not had a review. 80% of those who receive coaching from managers feel a strong sense of commitment to the company, com¬pared with 46% of those who do not receive coaching, and only 18% of those who say they have clearly defined performance goals are thinking seriously about leaving the company, compared with 46% who lack clearly defined personal goals.
Finding the keys to performance management:
a study of current trends and future possibilities
HRI 2006
- Who drives Performance Management at the top of organisations? In about 34% of the cases, the CEO is on board. The CFO is one of the main drivers in some 25% of the cases. In about 17% of the cases, the COO joins at the helm. In some 15% of the cases, the CIO is providing management sponsorship. Chief Performance Officers have not entered the arena yet.
Performance Management
Survey, Vlerick Leuven Gent Management School
August / September 2007
