10 reasons to adopt dynamic performance management (DPM) – Reasons 1-3
This three-part article series will provide 10 key reasons that you will want to consider some version of DPM in 2017.
Effective performance management: the term has perhaps lost its cache, but the concept is still critical to business survival! Performance management (PM) will always be relevant because business success will always require good to great performance. Dynamic performance management (or DPM) is a strategic, balanced, and comprehensive form of PM that simply yet thoroughly assesses and helps improve performance where it matters most. For organizations that want to maximize its ROI (return on involvement) of employees and technology, DPM is the best way to maximize on strengths, shore up weaknesses and seize opportunities as they relate to achievement of strategic objectives.
Accounting is often referred to as the language of business. Along these lines, we could also say that effective performance management is the language of business improvement. Without the ability to develop, process, and act on key results information, organizations are destined to continue making ad hoc decisions in the moment that lead to lukewarm results. Activating performance management (PM) equips organizations to learn from mistakes and build on successes. Organizations that want to graduate from managing messes to solving real business problems employ PM.
Learning a new language is not easy, which is why so many organizations avoid PM (and remain mediocre, even though success is within reach). Organizations that energetically take performance management to new levels are pursuing dynamic performance management (DPM) and become performance powerhouses. In other words, they are fully fluent in the language of business improvement. The list of motivations to learn and adopt a DPM system in your organization are many. Here are the first three of 10 key reasons you will want to make 2017 the year to shore up your performance management system.
- Actualization of real customer value
All organizations have a sense what they want to provide to customers. It is only through dynamic performance management that organizational objectives related to customers can be fully articulated and accomplished. Envisioning superior products and services and being able to deliver on them is only possible with an effective DPM system.
A strong DPM system includes comprehensive understanding of the full customer experience, from the moment a potential customer realizes their need for an offering, through their research, purchase, use and disposal of an offering. All key decision points are considered and analyzed to ensure maximum customer experience from beginning to end. The outcomes of the DPM approach include improvements in satisfaction, loyalty, repeat business, and referrals.
- Converting the continuing struggle with data overload into information power
As access to data and analytics continue to explode, it is becoming more and more difficult for employees and organizations to take in and make sense of these oceans of statistics. Used effectively, big data can provide a wealth of insights that lead to competitive advantage. Without a dynamic performance management program, organizations face an inability to. As a result, the information most critical to performance improvement fails to stand out and decision-making suffers. A strong DPM system helps key in on the important information, putting a spotlight on the information that matters most. The result is powerful insights that lead to performance improvement and achievement of strategic objectives.
- A culture and business climate comprised of action and empowerment
All too often, employees are not connecting the work they do to the objectives of the organization. All too often are they not encouraged to do so nor held accountable for it. No wonder then, that there is evidence that over 50% of work done in organizations directly conflicts with the organization’s strategic goals and priorities. Over 50%! Without some form of dynamic performance management program, most organizations will continue to flounder in mediocrity.
A DPM system can draw out the best ideas and actions from employees, many of whom have been longing for the opportunity to use their creative energy to problem solve and contribute toward superior performance. An effective DPM system releases people from working “inside the box”, while at the same time putting appropriate limits on creativity (for control purposes). Strong employees deserve to be recognized and rewarded. They will certainly embrace the maximization of opportunities for career growth that come with demonstrating performance. The result is an employee base that is energized, capable, and determined to be part of making the organization successful.
Coming very soon are the next seven reasons to make 2017 the year to become fully fluent in dynamic performance management. Each reason is just as important as the others, and success through improved performance awaits those who are able to exploit the opportunity.
Cam Scholey, MBA, FCPA, FCMA, has been a speaker, author and innovator for the past two decades, focusing mainly on the strategic concepts of balanced scorecard and strategy mapping. Specific areas of interest are performance management, accounting, management controls and finance. Cam also teaches (both in-class and online) at Royal Military College of Canada (in English and French).
Cam is an experienced writer and is the author of the book entitled A Practical Guide to the Balanced Scorecard (CCH Canadian). A writer for CPA Canada, he has written several management accounting guidelines and guidance documents on strategy mapping and the balanced scorecard. Cam is also a session leader in the new CPA Professional Education Program (PEP), and has written content for PEP.
Cam’s two newest undertakings are the certificate program on performance management for CPA Canada (just launched February 2017), and Spanish fluency. He enjoys playing hockey and practicing hot yoga when not immersed in all the intellectual matters.
Feel free to contact us with any questions at cscholey @ outlook.com or 416.209.0704.