Entries by Nathan Ives

System Implementation Challenges

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Organizational performance measurement systems are complex constructs that significantly impact leadership decisions, employee behaviors, and management processes and systems. Consequently, there are often many people, process, and technology challenges associated with the implementation or significant upgrade of such monitoring systems. By understanding these potential risks, leaders can put in place mitigating instruments to reduce the overall organizational impact and increase the likelihood that the new measurement system will be accepted and have the desired positive impact on performance.

Diverse Metric Groupings

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When developing the picture of organizational performance, many leaders view their metrics in clusters aligned with the organization’s hierarchical structure. While logical, such groupings cannot capture the cross-functional nature of many business processes, systems, and applications. Consequently, the organization’s monitoring system may provide the appearance of healthy performance that is inconsistent with what managers know to exist. Regrouping organizational performance measures often reveals these known issues and brings to light other previously unseen improvement opportunities that can yield great value to the business.

RACI Matrix

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Performance measurement systems monitor the behaviors and results of the organization’s workgroups and, in some cases, individuals; providing periodic reinforcement of the achievement of desired outcomes. This reinforcement can only occur when an individual understands his/her role as associated with a metric and receives and understands the associated performance information. Such role designation and communication is fostered through development of a RACI matrix specifically associated with each performance measure within the system.

Resource Management Warning Flag 3 – Marginalizing Employee Contributions

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All employees need to feel their work contributes to and is valued by the organization. While leaders may express appreciation for an individual or group’s work effort, resource management programs sometimes unintentionally marginalize employee contributions. Doing so causes employee dissatisfaction, burnout, and unwanted attrition. Resource management and strategic planning programs must therefore be carefully constructed so as to not unintentionally marginalize employee effort.