The Holistic Performance Management

Corporate Performance Management is needed for all organizations as a way of living, what is the reason of their existence and how and what. Corporate Performance Management is a management control from strategy till shop floor. Due to the digital nature of hyper-connectivity and interdependence, organizational management also shifts from silo-based, reductionistic traditional management style to the holistic digital management. The business performance management needs also to do the similar adjustment, to ensure the individuals are assessed objectively and holistically, and the business as the whole is superior to the sum of pieces.
One of the significant pitfalls in digital organizations is about silo thinking and ineffective measurement: Often, forward thinking and holistic performance management are frequently retarded or prevented by how organizations define success on the individual or departmental performance level. The larger the organization, the more and more isolated goals become when considered in the context of the organization's enterprise goals. Often in these environments, Each one of departments measures on their own success, the department actually rewards or incentivizes behaviors that enhance the appearance of the performance of that department at the expense of other parts of the organization. If you want collaboration, and build a forward thinking organization, each responsibility of each job within the organization should be evaluated based not on the impact of the individual or a department's goals, but on the overall impact of the enterprise. Avoid silo thinking, individual goals typically are goals that are based on a subsection of a department's goals, or a division goal, and the division goals are always the part of the company’s goal. Hence, it is important to build and maintain trust, transparency, collaboration for harnessing holistic performance management and improving strategy management success rate.
Continuous Performance Management: The employee performance management in traditional organizations are often the annual event, focusing on past performance review, not on the future talent development. Waiting until once per year or even every six months to evaluate workers is also not enough to know key performance nor should it be. There is a danger of not having a dynamic process to "develop and nurture" performance, bias and favoritism are common in the workplace. Digital is the age of continuous delivery, how about real-time appraisals that take place consistently and can be tracked accordingly. The idea is to get away from the annual event based on stale data and poor record keeping. The continuous performance management has the focus from evaluating the individual to partnering with the employee to evaluate the quality of the interactions the employee has started with the manager and employee, with the goal to map every individual's performance and potential with business strategy execution more closely and seamlessly. Many forward-looking organizations also leverage self performance management to provide employees opportunities for self-management, encourage autonomy, discovery, and continuous improvement.
A balanced scorecard will help to measure performance and impact in a structural way: Digital strategy is nothing unless it’s implemented effectively. A scoreboard is to provide the “balanced” view of trade-off variables. You also need to consider, among other things, such as the overall strategic balance, dependencies, and constraints between components, individual, and overall risk exposure. In terms of the full gamut of strategic management, such as analysis, options development, trade-offs and other choices, successful implementation, feedback, and adjustment, a balanced scorecard is necessary to practice the holistic performance management in a structural way, allowing the most effective initiatives to be planned for achieving the corporate goals and the appropriate corrective actions to be taken upon those initiatives, when needed, in order to keep strategy execution on track.
With increasing speed and hyper-connectivity of digital businesses, performance management systems and processes are gradually moving away from a static, unidirectional, and time-bound avatar to a more dynamic, continuous, and interactive state, with the goals of improved transparency, goal tracking, real-time feedback, and enterprise-wide acknowledgment/recognition of achievements.
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