Could any entrepreneur imagine the most that he/she can get from his employees? Not sure, unless if he/she get the right process. But business performance management exists and evolve, how could it help to do so?
According to wikipedia, business performance management is a set of performance management and analytic processes that enables the management of an organization’s performance to achieve one or more pre-selected goals. In other words, it is a way of setting corporate goals and apply methods to achieve them.
The idea behind that is to plan the contribution of every employee to the company performance. This is done through a periodical cycle, usually a year, following 4 steps: planning, monitoring, reviewing and rewarding.
The business performance cycle starts by setting group (corporate) and individual goals and then determining policies and methods that will be used to achieve those goals.
Individual goals must be set as SMART objectives which contribute to achieve one or more of the company’s goals.
This planning phase also takes in count what strengths and skills every employee should develop to achieve the desired goals.
However, creating a large number of yearly or much longer objectives is time-consuming, laborious, results in poor planning and usually a lack of motivation. So, having a few shorter-term objectives on the go at any time is advised.
Once planned, the next step of the business management cycle are act and track. Tracking implies monitoring which consists of measure performance and provide ongoing feedback to employees toward reaching their goals.
With broken subgoals, instead of one yearly monitoring, many companies have introduced a series of consecutive, smaller and more intuitive cycles which also implies regular reviews.
The review is there to help management and employees evaluate both the final result and the process itself in order to correct or optimize what have to be in the next cycle.
Rewards are sign of recogniction for employees. In fact, they encourage them in their efforts and ensure that they will continue to work hard to achieve their setted goals and consequently the corporate objectives.
Times are changing and they change with everything including performance management methods. Currently, continue with the old based on time system shows its limits facing to more important challenges. So, develop systems which use new business performance management concepts, to keep employees motivated and productive is imperative. SEAMS is one of them.