Implementing Corporate Performance Monitoring Framework
'Joel Omeike
The HRGodfather || Trusted Advisor || Certified Business Value Builder || Global HR Professional || Speaker || Trainer & Coach || Author || Data Analyst || Investor || Incurable Serial Entrepreneur
The Corporate Performance Monitoring Framework Describes modalities employed to ensure strict adherence to the corporate work plans, and in working towards the achievement of the company’s objectives.
At P4PE Institute, we recommend the following 4 components of the Framework:
1. Divisional/Departmental Performance Scorecards
2. CEO’s Performance Dashboard
3. Monthly Performance Review (MPR) Sessions
4. CEO’s Monthly Performance Communiqué
1. Divisional/Departmental Performance Scorecards
This is a simple ‘template’ designed to capture the performance of each Department/Division against the agreed work plans.
Distil (break down) each Work Plan item into detailed actions/activities, expected outcomes and identify KPIs/specific measures that point towards performance (or non-performance). ?Here is a sample for the HR department:
These scorecards help to keep every division in alignment with the corporate objectives. All objectives here must be derived and be in alignment with specific objectives on the corporate scorecard. The division leader is accountable for the outcomes of this scorecard.
2. CEO’s Performance Dashboard
The CEO’s Performance Dashboard is a one-screen clear, uncluttered board that provides in one glance how mission-critical objectives and KPIs are performing. It is best to be represented by speed dials, traffic lights or other similar visual representations.
This dashboard takes as input the various divisional scorecards and other board/C-Level metrics. Usually, this is a 5-16 KPIs dashboard with not more than 4 of them highlighted.
We once had one installed at the Presidency that highlighted the critical measures of the various MDAs and how these were measuring up. The Permanent Secretary used it as a guide for all periodic meetings and engaging directorates that were lagging.?It also helped the executive to allocate his time according to the set priorities and emerging critical performance issues.
3. Monthly Performance Review (MPR) Sessions
In the MPR sessions, each Division Unit Executive will present the performance of the previous month to the CEO (or EXCO). The sessions are workout and ask pertinent questions:
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Did they hit or miss their KPI targets? If they hit, are there any emerging issues that could hurt future performance? If not, well-done management. If it's well done every month then perhaps targets were too soft. Remember that for next year's budget...
If they missed parts of the plan, why? What are the drivers? Is it a timing issue that will reverse in a future period? Is it a structural performance issue? What is being done about it? Will it fix the problem?
The 5 Why's can work well here... A good MPR will:
Your Divisional Heads must leave the MPR with a clear and agreed list of actions that directly address the Division's performance issues. This should be circulated, what, who, when, and how much, immediately following the meeting.
They won't want to turn up next month without having done their bit. Good Division teams will also run the same MPR process in their unit at the next level down, and their teams will do the same. That is the magic thread.
If the MPR process goes well, then the Division teams will run off and deliver performance improvements with the white-hot fury of 1,000 suns making sure they aren't on the CEOs/EXCOs watch list for the next management communiqué distribution.
In the meantime, you can keep tabs via the weekly flash…
4. CEO’s Monthly Performance Communiqué
The final part is how you keep track between the periods. Simple headlines like Revenue, EBIT and Cash vs Budget (with month-to-date tracking) are enough at a corporate level weekly. Call it anything you want but I will just refer to it as a Weekly Flash.
Division teams will need more as they need to respond daily and weekly to operational issues. But on a weekly basis, you are just looking for indicators of something coming off the plan in a major way across each of the Divisions. Something that can't wait for the next monthly cycle.
However, the monthly performance communique is more detailed and should go out to the entire organisation. The purpose of the monthly communication is to:
Make sure your message meets the following criteria…
You Want News
There’s an old saying: “No news is good news.” But in business, nothing is further from the truth.
Lack of frequent, consistent communication erodes trust. Intermittent, partial, or flaky communication fosters distrust. The levels of trust and communication rise and fall together. Building trust through clear communication can be one of your most valuable corporate performance management tools or, if ignored, can become the root of serious performance problems.
Please reply and let me know what you think and how you are managing your corporate performance. Also, reach out if you need assistance establishing a performance-based culture in your organization.
Joel Omeike! is a Business Growth Value Builder and a global HR professional and has been referred to as The HR Godfather. You can join his Linkedin groups here, 'HR Professionals in ' Nigeria, Ghana, Kenya, West Africa and East Africa. and HR Certifications. He is also the Founder and Lead Consultant at P4PE Institute.
Communications, Corporate Relations, Partnerships Development and Peoples Operations Professional
1 年This is really great insights and recommended for CEOs and even senior level managers. Keeping tabs on performances of employers against targets, open a whole lot of learning for the growth of the organisation. Not only in terms of the revenue growth, but corporate delivery standards and trends; especially in the face of the dynamics for corporation and the advent of AI. Thanks for sharing Joel... Indeed the HR Godfather