How can you avoid risks in performance measurement and monitoring during restructuring?

1 Choosing the wrong indicators

When it comes to performance measurement and monitoring, one of the first steps is to define the indicators that will measure your restructuring objectives and results. However, if the wrong indicators are chosen, it can lead to inaccurate, irrelevant or misleading data that can distort decision-making and communication. To prevent such risks, you should align your indicators with your restructuring vision, strategy, and expected outcomes. It is also important to use a balanced mix of quantitative and qualitative indicators that capture both the hard and soft aspects of restructuring. Furthermore, validating your indicators with relevant stakeholders and experts can ensure they are clear, reliable, and meaningful. Lastly, you should review and update your indicators regularly to reflect any changes in your restructuring context, assumptions, or priorities.

2 Neglecting the baseline and targets

Establishing the baseline and targets for your performance indicators is another essential step in performance measurement and monitoring. The baseline is the starting point or current status before your restructuring, while the targets are the desired levels of performance after restructuring. To ensure clarity, direction, and accountability for your restructuring initiatives, it's important to collect and analyze baseline data for your indicators before implementing any actions. Additionally, set SMART (specific, measurable, achievable, relevant, and time-bound) targets that reflect your goals and resources. Make sure to communicate the baseline and targets clearly to stakeholders and staff, and track and compare actual performance against the baseline and targets regularly. Report any deviations or gaps as needed.

3 Ignoring the external factors

Performance measurement and monitoring is not only about measuring your own performance, but also understanding the external factors that can influence or affect your restructuring outcomes. These external factors, such as market trends, customer preferences, competitor actions, regulatory changes, or social issues, are conditions or events outside your control that can have a positive or negative impact on your restructuring performance. To avoid missing important opportunities or threats due to a narrow or biased view of your restructuring performance, you should identify and monitor the external factors that are relevant to your objectives and indicators. Additionally, you should analyze how these external factors can affect your restructuring performance both directly and indirectly. Furthermore, you should adjust your performance measurement and monitoring framework and methods to account for the external factors and incorporate them into your performance reporting and communication in order to provide a comprehensive and realistic picture of your restructuring performance.

4 Overlooking the feedback and learning

Performance measurement and monitoring is not only about collecting and reporting data, but also using it to improve restructuring performance and outcomes. Feedback and learning involve interpreting, evaluating, and applying the data to identify strengths, weaknesses, opportunities, and challenges of restructuring actions and results. To avoid wasting or misusing data that can hinder improvement and innovation, you should establish a regular feedback and learning cycle that involves data collection, analysis, reporting, review, and action. Make sure to involve stakeholders and staff in the process to ensure their input, feedback, and participation. Additionally, use the data to inform restructuring decisions, actions, and plans. Finally, share the feedback and learning data with your stakeholders and staff to enhance their awareness, understanding, and engagement.

5 Failing to communicate and report

Performance measurement and monitoring is not merely about measuring and improving your performance, but also communicating and reporting your performance to stakeholders and staff. It's essential to present, explain, and share your performance data and results to inform, persuade, or influence your stakeholders and staff. If you fail to communicate and report, it can lead to a lack of transparency, trust, and support for your restructuring efforts. To prevent this risk, you should define and understand your communication and reporting objectives, audiences, messages, and channels. Use clear, concise, and consistent language and formats when communicating and reporting your performance data. Additionally, emphasize the successes, challenges, and actions of your restructuring performance while connecting them to your restructuring vision, strategy, and outcomes. Invite feedback from stakeholders and staff on your performance communication and reporting.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?