10 reasons to adopt dynamic performance management (DPM) – Reasons 8-10

This article, which is the third of a three-part series, will continue demonstrating that effective performance management is the language of business improvement. Activating dynamic performance management (DPM) equips organizations to learn from mistakes and build on successes. This article will discuss the final three of 10 key reasons that adopting DPM provides a high return on investment.



  1. Better management controls due to a shift in a results-based focus

The fact is, there is a small proportion of society that has no reservations about cheating or breaking rules for some sort of payoff (financial or otherwise). This small population can create large issues for organizations trying to perform within a set of established values in an effort to achieve some critical mission. Further, it is not always people that create risks for organizations – uncontrollable events such as foreign exchange rates and natural disasters must also be managed.


Accordingly, all organizations, regardless of sector, need an appropriate set of measures and controls that will allow them to maximize the likelihood of fully achieving each of their strategic objectives. DPM is tied tightly to management controls, which is essentially the framework around which analytical tools from management accounting are used to enable organizations to achieve their desired objectives.


  1. Accomplishment of strategic objectives, both singularly and collectively

The fact is, most organizations actually have a sound strategy. It is well thought out and the plans around it are promising. However, over 80% of strategies fail because of the lack of focus and discipline put into ensuring that the activities and tactics employees perform are the right ones. Unless organizations focus on, measure, and reward the appropriate behaviour, performance will remain lacklustre. For organizations devoid of a dynamic performance management system, this strategic failure trend is certain to continue.


The variety of positive outcomes realized within the organization from a dynamic performance management initiative maximizes the likelihood of realizing a host of impressive downstream results. Companies can accomplish each strategic objective, plus enjoy the strategic synergies that result from realizing a strategy that is aligned and integrated. The associated benefits, including impressive financial results, await organizations that make the investment in dynamic performance management.


  1. An enriched financial situation

One of the areas that almost always falls victim to sub-par performance is an unhealthy fiscal position. It weakens liquidity and solvency (which can damage credit ratings), creates an inability to fund requisite operations and create unnecessary expenditures like interest. In addition, it is a major turn-off for investors and donors.


A customized DPM program improves operations which will assist any organization in improving its financial situation. As the realization of enhancements throughout the organization begin to unfold, important aspects of operations such as working capital and solvency begin to approach a steady state. This can create a snowball effect, where excellent operations and a healthy financial situation work off of each other for lasting improvements.


Dynamic performance management: nothing to lose except business angst

Many organizations are so caught up in day-to-day problem resolution and reactive activities that they don’t consider how meaningful an investment in a proactive, reasonably priced initiative such as dynamic performance management can be. In fact, this initiative can eliminate a tremendous amount of the reactive, non-value-adding activities that consume so much of the average workday. You did not sign up to manage messes – you want to solve real business problems every day. DPM will get you there.


Presented here were 10 key reasons to adopt a DPM system in 2017. There are certainly more than seven – maybe you can think of others yourself. A DPM initiative could be small, it might be large. Tailored to suit the organization’s needs, the return possibilities are very promising. Dynamic performance awaits!


Cam Scholey

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.



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