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Archive for the ‘Performance Planning’ Category

Plans Must Be Rooted in Past Performance

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Performance planning is not developed in a void, nor is it based upon unsubstantiated estimates of budgets, performance and plans. Effective leadership demands plans be based upon past performance and results. By successfully implementing such plans, leaders can stimulate their subordinates to exceed normal performance expectations.

It is surprising how many managers develop annual plans and budgets without accounting for previous years’ performance and the realistic capabilities of their operational unit. Plans that lack these important elements are typically ineffective as roadmaps for achieving high output from an organizational unit.

Effective leaders understand that in order to move their unit forward, they must look at what has worked in the past and then build upon those successes. They also take proactive measures to eliminate any apparent failures and weaknesses.

This process is important for leaders to understand if they wish to motivate their subordinates to reach higher levels of achievement. Plans are not a worthless set of documents to be viewed only once or twice a year: they outline significant milestones and detail what the unit needs to do to effectively operate throughout the year. Leaders understand that performance plans lay out the path for attaining their goals and objectives.

The importance of proper planning cannot be emphasized enough: if it is to be effective and realistic, it must be focused upon prior performance of the leader’s organizational unit. Therefore, a formal review must be conducted in the following three critical areas:

Operational Performance

A formal review in this area is normally conducted on two levels simultaneously: operational and leadership. The operational review compares the organizational unit’s performance with the stated goals and objectives passed down by senior management. The leadership review compares the organizational unit’s performance with the leader’s expectations. While both levels review the same information, the leadership review is conducted from the leader’s perspective of how he or she can motivate the unit to exceed expectations.

The process of a formal review begins with a superficial selection of areas that need further examination. Particular attention needs to be paid to what did and did not work during the past year. This is where leaders can begin to develop strategies to build upon their unit’s successes and eliminate or correct any failures/weaknesses.

Leaders next need to rate the actual performance of all aspects of their organizational unit, including personnel, tasks, assignments, roles, resources and so forth. At this point, any required changes and adjustments should be noted for inclusion in future performance plans.

A final review of operational performance needs to explore the impact and affect of new trends, changes in economic conditions, and uncontrollable events on the operational unit. A thorough examination should note exactly what occurred, how it impacted the leader’s unit and how the unit responded. Any lessons learned from these experiences should also be included in future plans.

Resource Utilization

A formal resource utilization review should be conducted to determine if the leader and the organizational unit maximized their use of available resources. Typically, this review determines if the unit effectually used personnel, machinery, equipment, time, schedules and financial resources.

Leaders need to analyze the operational or production capacity of their organizational unit. This can be conducted from several perspectives, such as production, operations or administration, depending upon the responsibilities of the unit. A resource utilization review pinpoints any bottlenecks or problems that occurred in these areas.

Next, leaders must determine the causes of bottlenecks and problems, which can include inadequate scheduling or insufficient human or financial resources. The findings should be detailed and included in future planning activities.

Financial Performance

The last step in this review analyzes the unit’s financial performance. First, leaders determine how well their organizational unit worked within its budget. They will often discover problem areas that can be more deeply examined during the performance planning process.

An additional review should be conducted to look at the profitability of the organizational unit, including potential ways for it to cut costs and improve productivity. These findings should also be detailed and noted for further examination as well as inclusion in future performance plans.

If you are seeking proven expertise and best practices in performance planning to train or educate your employees to solve problems and improve their performance in this area, refer to Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series. Click here to learn more.

Related:

Six Key Benefits of Performance Management

Five Critical Steps to Maximize Performance

Measure What Needs to Be Measured

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2014 Timothy F. Bednarz, All Rights Reserved

Attaining Results Requires Visionary Thinking and Planning on Multiple Levels

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Leaders have a responsibility to connect elements of their vision in the context of thinking, planning and actions. Connecting vision to action and then to expected results depends upon effectively applying “visionary thinking” practices and principles. Visionary thinking then provides the means for strategic direction and specific deployment actions.

Leaders need to define the larger picture of who the organization is, which defines its being, and what it does, or its mission. This also includes identifying what values are important to the organization, where it is going or its visional direction, and why it must go in the direction its leaders determine. It takes visionary thinking to develop necessary strategies, procedures and plans capable of linking these elements in a way that moves employees and the organization forward.

It is no accident that visionary leaders generally become an organization’s best teachers and create definite linkages between values, vision and mission. They make communication the cornerstone of the organizational culture, and inspire members to embrace, actively work toward and successfully attain the shared vision.

The need for organizational change and sometimes a new course or direction is often not clear to management and/or the workforce. Visionary thinking works to integrate a strategic direction of an organization to a long-term destination, which then sets into motion various key elements and processes that work together to effect necessary changes. From a visionary standpoint, it is the leader’s primary responsibility to set the context for needed changes and present compelling reasons why management and employees alike should accept the challenges that the changes represent.

If the need for vision-related change is not clearly communicated in an organization’s strategic direction, then the value of planned strategies, goals, objectives, as well as the vision driving the intended changes will ultimately come into question. If the rationale behind particular changes is not thoroughly understood, the changes will be resisted. Then either nothing happens, or employees will only demonstrate superficial compliance.

Leadership is defined by recognizing the need to change, communicating this need, and accomplishing necessary incremental changes through the actions of employees. To align and communicate leadership expectations and responsibilities, terms such as vision, values and mission help get the attention of organizational employees to spark a desire for embracing progress.

Attaining organizational results requires visionary thinking and planning on multiple levels.

Visionary Thinking Places Employees’ Best Interests First

Above everything else, the key to successfully implementing vision-related initiatives is for leaders to create positive environments for employees that allow them to embrace their unique talents and capabilities, feel secure, grow and prosper. Imparting the larger picture to employees in regard to organizational vision is one of the most effective tools for facilitating a solid commitment to new vision, values and mission. With commitment comes positive and enthusiastic action.

If employees “feel” secure about the promise of the vision and the importance of the mission they will begin to take ownership of them. “Feelings” are associated with the organizational values and values, tend to define the culture. Therefore, leaders should consider how well the organizational culture is aligned with their vision, mission and actions.

Visionary Thinking Focuses on Values

Values are what are most important in relationship to attaining leadership and organizational vision. They provide organizational as well as personal parameters and boundaries, and help to guide behavior, prioritize decisions, and justify the rationale for vision-related decisions. With organizational values as a foundation, vision is where the organization needs to go.

One of vision’s main functions is to provide excitement about the mission or destination. Visional communication that is value-based explains to employees how all the various vision-related elements come together and interlink to determine actions that accomplish the desired goals, objectives and changes.

Vision and Positive Workplace Culture

Culture and leadership are often considered two sides of the same coin. This is because leaders tend to first create positive cultures when they establish well-functioning and collaborative groups within their organizations and departments. Once these cultures exist, they determine the best criteria for moving their visional direction forward.

Incorporating cultural understanding into the “visional picture” and directional goals and objectives is essential to leading effectively. If organizational and workplace cultures become dysfunctional, leaders have to think of strategies that can be implemented to successfully manage transformational change in such a way that their employees can survive and cope with it. If leaders are conscious of the cultures in which they operate and function, those cultures will manage the desired changes.

Visionary Thinking Coordinates Resources

Vision, values and mission become the means by which leaders are able to guide, influence and educate their employees. Among these three factors, vision becomes the “magnetic field” that works to align people, efforts and resources, which tends to generate a desire to incorporate positive planning, action steps and motivation to achieve successful outcomes.

Visionary thinking focuses on the ways and means to coordinate employees and resources that will make necessary changes a reality. It considers interconnections between organizational values, vision, and mission that work to provide a new sense of direction or drive higher levels of performance. This forms the basis for determining where the organization needs to go and the changes that will help get it there. Visionary thinking helps to eliminate management processes, practices and procedures that tend to void or negate positive vision-related efforts, workforce momentum and work-related enthusiasm.

Visionary Thinking Should Not be Confused with Strategic Planning

Leadership is based on change, and change is about thinking differently and being creative. Strategic planning void of visionary thinking is nothing more than a superficial to-do list and may not detail the more in-depth pursuits needed to accomplish the real desired outcomes.

When vision, values, and mission guide an organization’s strategic direction, real change becomes the driving force for the development of specific goals and objectives. In this way, vision and values become more of a strategic plan than the created project plans that are developed to accomplish particular goals and objectives.

Leading vision-related change is typically considered to be a right-brain activity in which getting people to see the reasons why change is necessary and how to go about implementing it is the focus. Managing vision-related change is mostly a left-brain activity concerned with the “what’s and how’s” of action steps, and laying out a strategic course and direction.

Developing visionary thinking requires addressing and designing implementation procedures and practices around eight steps.

  • Establishing an immediate sense of urgency;
  • Creating a vision-oriented “guiding and directing” base of supporters;
  • Developing a separate strategy and vision for each smaller part of the whole;
  • Communicating the vision of change;
  • Empowering broad-based employee actions;
  • Generating short-term wins and successes;
  • Consolidating gains in order to generate further change;
  • Embedding new approaches, philosophies and practices into the organizational culture.

Taken in their entirety, these steps can be viewed from a sequential perspective, which moves from leading visionary change to managing it in order to complete sequential and incremental forward movement. The final four steps may be seen as forming a transition from “where we as a collaborative group need to go” to “how we’re going to get there.”

Visionary Thinking Leads to Action

Once the leader’s vision is defined and communicated, the visionary thinking process becomes officially translated into action. Strategic planning becomes more of a programming activity to support the leader’s visionary thinking. Within this context a leader can expect tension between leading and managing change.

Visionary thinking should provide a means to support the creation of a common focus. This is not to be confused with the development of a vision statement. A formalized vision statement may or may not provide the desired common focus and commitment for needed actions or changes.

When a leader’s vision statement becomes “etched in stone,” it may inhibit refocusing, redefining, and communicating a new sense of direction for achieving a different end result or seeking out new opportunities. Within the visionary thinking process it is more important to develop ways to “etch” the leader’s vision in employees’ minds and hearts, as well as to guide their behaviors and attitudes.

It is just as important to develop criteria that consistently provides for decision-making and prioritization that will accomplish the organization’s vision-related mission. Visionary thinking is about creating new categories for developing or grouping previously developed strategies. It needs to focus on defining functions and processes that take leaders beyond their normal comfort zones and limitations to view things from new perspectives and in new combinations.

Aligning vision with action should be the goal of vision-based thinking and strategic planning. Ultimately, aligning vision and action should move the organization in the desired direction.

Excerpt: Creating and Sustaining a Strong Vision: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011) $ 16.95 USD

Related:

How Well Are You Communicating Your Vision?

Execution: Six Action Steps

Seven Productive Responses to Change

How Well Do You Set the Tone?

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2014 Timothy F. Bednarz, All Rights Reserved

Measure What Needs to Be Measured

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Performance plans are action plans, not static documents. Effective performance plans must detail the specific actions leaders and employees must follow to accomplish the goals and objectives set within it. Leaders understand that without meaningful performance standards, measuring and evaluating individual performance becomes difficult if not impossible. Once the plan is implemented, meaningful performance standards allow leaders to modify and adapt their plans to actual conditions.

Leaders must use solid standards to monitor and evaluate all aspects of performance. Any measurement used should determine and create an action both on the part of the employee being evaluated and on the part of the leader performing the evaluation.

There is a natural tendency for a leader to focus his or her activities on more prominent areas that will be highlighted and spotlighted, yet every element of the performance plan must be fully addressed.

It should be noted that any standard a leader creates will direct, limit and change the behavior and performance of their employees. This is important for leaders to understand because what and how they choose to evaluate can have either a positive or negative effect on the performance of their organizational unit.

A common pitfall in establishing performance standards is overdoing them. It burdens all involved with excessive factors and controls. Leaders know that to be effective, they need to set performance standards that are relevant and meaningful. It is far better to have fewer meaningful standards than to establish many useless ones. When applied, these standards will present a true picture of the performance of their organizational unit at any given point in time. Four areas to focus on in creating meaningful performance standards are:

What to Measure

The specific elements that need to be measured will vary by organizational unit. Typically, performance standards are set around productivity and profitability. Most leaders establish performance standards by setting specific performance expectations. Examples include:

  • Progress is evaluated by the reaching of specific milestones linked to individual goals and objectives.
  • Profitability is evaluated against the budgets established for each activity.
  • Efficiency is evaluated by the resource utilization within the organizational unit.

Each organizational unit has key factors that determine their success. Leaders identify these factors as indicators of performance and look for trigger points that are early indicators of the success or failure of these factors. For instance, if a leader is managing a manufacturing unit, he or she may focus on projected orders as a key indicator of their unit’s future activities. While a production supervisor may not be interested in these future indicators, a leader looks beyond the immediate horizon to maximize the efficiency of their unit.

How to Benchmark

Once leaders know what they want to evaluate, they need to benchmark each critical measurement. This establishes degrees of confidence and reliability in their numbers. They review these statistics over a meaningful period of time to establish a benchmark of past performance in each area. The longer a leader reviews the past performance of a specific area, the higher the degree of confidence and reliability he or she establishes.

Once key performance standards are benchmarked, leaders establish “triggering events” that result in taking immediate action. Since the benchmarked statistic is the standard, a triggering event can be predetermined. This event or “flag” occurs when performance rises above or falls below a specific percentage of the benchmarked standard. This provides leaders an early warning system to proactively deal with performance problems before they get out of hand.

How Frequently to Measure

Leaders are careful not to overburden themselves with needless information. They use performance standards as a means to keep their finger on the pulse of their unit’s performance. They can easily determine the frequency for receiving reports of their unit’s performance. Some statistics are meaningful on a daily basis, some hourly, and still others only when reported over prolonged periods of time.

What Measurements Indicate

Key performance standards need to inform leaders of the overall performance of their organizational unit. Specific measurements can trigger corrective actions, while others indicate the progress of the unit against performance plan goals and objectives. Effectively utilized, solid performance standards lead and direct the leader’s actions to fine-tune his or her unit’s performance. The right balance of key standards points the way to improved overall performance and productivity.

Excerpt: Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI, 2011) $ 16.95 USD

Related:

Five Critical Steps to Maximize Performance

Execution: Six Action Steps

Performance Plans Create Results and Maximizes Performance

Objectives Allow Managers to Focus on Obtaining Results

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Linking Structure to Action

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Jim Casey (l) and Claude Ryan (r) - UPS

Jim Casey (l) and Claude Ryan (r) – UPS

Well-executed plans require organizational structure before they can be successfully implemented, and the great leaders understood this. A properly structured organization builds and drives lines of accountability throughout itself. As the former Quartermaster General of the U.S. Army, General Robert Wood [Sears] “ran the company along military lines: directors of hardware and research, for example, corresponded to army chiefs of ordnance or artillery. Channels of authority fell sheer from top to bottom, but autonomy rode down with them.” (1)

James Casey (United Parcel Service) started UPS as an adolescent, so he didn’t possess the military background that Wood had, but he “was an early and thoroughgoing advocate of what was called, in the 1920s, ‘scientific management.’ He believed efficiency produced profit. And he believed that efficiency was achieved by measuring everything – by keeping track of the cost (in time and money) of every step in the process of achieving a result – in this case, the result of successfully delivered packages that met customer expectations. Further, Jim Casey believed that whenever you found a process that improved efficiency, you made it standard practice and you supervised employees to achieve fidelity to that practice.” (2)

Wood and Casey were only a few of the great leaders who linked structure to action. Ray Kroc (McDonald’s), Sam Walton (Wal-Mart), Kemmons Wilson (Holiday Inn) and Thomas Watson Sr. (IBM) all built organizations where structure was also solidly linked to action. So did Admiral Hyman Rickover (U.S. Navy). “Rickover believed in courageous impatience. The power of unshakeable determination was critical for him, as good ideas do not get executed very often. Deciding what to do is the easy part … getting it done is more difficult. Being involved in details shows subordinates that if it’s not important to you … why should it be to them? When details are ignored, projects fail. This is not about doing things yourself; it’s about frequent reports (both oral & written) and from numerous sources (remember, he had 40 direct reports!!)” (3)

Peter Drucker observed, “Managers do not make decisions by opinions nor according to their preferences. They manage through the force of facts and not through the force of personality. ‘Bedside manners,’ I once heard Sloan say in a speech to GM managers, ‘are no substitute for the right diagnosis.’ ” (4)

  1. Doenecke Justus D., General Robert E. Wood: The Evolution of a Conservative (Journal of the Illinois State Historical Society)
  2. Nelson Douglas W. – President of The Annie E. Casey Foundation at Duke University’s Terry Sanford Institute of Public Policy – speech to the Foundation Impact Research Group Seminar, March 9, 2005
  3. Wacker Watts, Courageous Impatience (www.firstmatter.com)
  4. Drucker Peter, The Best Book on Management Ever (Fortune Magazine, April 23, 1990)

Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It. (Majorium Business Press, Stevens Point, WI 2011)

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Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2014 Timothy F. Bednarz, All Rights Reserved

How Well Are You Communicating Your Vision?

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Vision communication can be thought of as expressing an ideal that represents or reflects the organization’s collectively shared values. Numerous studies have shown that leaders who enthusiastically promote and communicate their vision tend to create positive effects on employee performance, attitudes and perceptions.

Specific core components need to be incorporated to effectively communicate one’s vision. These are:

  • Displaying a charismatic, forceful, animated and confident communication style;
  • Taking action to support the implementation of the vision, such as by serving as an exemplary role model;
  • Intellectually stimulating employees and building their confidence while continuously promoting the vision.

A well thought-out vision concisely but openly expresses a leader’s values and energy. In this way, vision content is communicated through imagery that generates a vivid mental picture of possibilities in relationship to existing realities.

When communicating their vision, leaders should focus on detailing its strategic emphasis and response to necessary changes. This includes outlining expectations as to the vision’s degree of control over those changes and its relationship to employees’ self-interests, as well as combining specific needs and values into a unified and collaborative effort.

Describing the Vision in Terms of Mission, Values and Goals

Communicating a vision effectively needs to incorporate components of the leader’s organizational mission, strategy, values and goals. Leaders need to communicate the vision in such a way as to integrate all these elements and place them into a visual framework that works to guide future action. Communicating a vision needs to motivate the setting of specific task-related goals, which in turn affect and alter performance.

It is essential to maintain clarity when communicating visional direction, with goals specifically detailed and explained. As part of this communication process, statements should include imagery that is specifically related to:

  • Performance
  • Achievement and improvement
  • Future time perspectives
  • Assumptions of personal responsibility
  • Initiatives and their acceptance
  • Anticipating future possibilities

Goals should be described in desirable terms that reflect ways to address challenges or the future orientation of the organization. For example, results-focused company goals may become the equivalent of task-specific targets such as “doubling production output within the next two years.”

The Importance of Modeling the Vision

While effective communication of a vision has a direct and obvious effect on performance, it is more likely to generate indirect impacts on motivation, acceptance, and perseverance in overcoming challenges and hindrances. Indirect positive results are realized when employees know the purpose behind the vision’s structure and understand its content, attributes and interrelationships from their own personal perspective.

As simply communicating a well-formulated vision is not enough to guarantee results, leaders within the organization must “walk the talk.” As part of the communication process, leaders need to reinforce the vision’s inherent values through consistent and animated positive role modeling as well as in the way they select and work with employees, acknowledge small changes and reward successes.

Vision Needs Visibility

Leaders often tend to articulate a vision taken straight from their organization’s strategic plan or their own personal planning process. When doing this, they begin to rewrite a modified or restructured vision and mission statement, or sometimes even find themselves devising and establishing an altogether new set of organizational values. Most times these efforts only muddy the visional communication process and leave employees confused. This in turn results in hindering the goals they desire to pursue, and effective ways to achieve them.

Communication of a vision does not rely on the underlying rationale as much as it does on making exciting possibilities “visible” within the organization. Leaders can accomplish this by openly communicating and stressing the following:

  • Inspiring with a sense of passion;
  • Employee well-being as a direct benefit of the vision;
  • Vision as an adaptive tool for organizational and group survival;
  • The necessity of building and maintaining work effectiveness;
  • Courage and a willingness to take a stand;
  • The rewards of ambition and perseverance;
  • Integrity, ethics and values;
  • Generating self-esteem and emotional stability;
  • Developing patience, endurance and tolerance for ambiguity;
  • Quality decision making;
  • The importance of stimulating creative thinking and innovation;
  • The intention to utilize all employees’ functional, technical and organizational skills in pursuit of the vision;
  • Priority setting as a necessary tool to accomplish assignments, projects and tasks in a timely and effective manner.

To align and communicate vision-related responsibilities, leaders utilize terms related to organizational values and mission, exciting challenges, unified efforts, and work-related incentives to help get the attention of employees. Doing this makes the vision concrete and tangible, and sets in motion key elements for reaching the necessary goals that steadily lead to its attainment.

Excerpt: Creating and Sustaining a Strong Vision: Pinpoint Leadership Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011) $16.95 USD

Related:

Five Critical Steps to Maximize Performance

Execution: Six Action Steps

Performance Plans Create Results and Maximizes Performance

Objectives Allow Managers to Focus on Obtaining Results

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2014 Timothy F. Bednarz, All Rights Reserved

Six Key Benefits of Performance Management

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Managers are inundated with a high volume of information and required to make multiple decisions daily. It is often difficult to be fair and consistent in decisions when the manager is operating on a reactive rather than proactive basis.

Performance management gives managers a specific set of parameters to make decisions and act in an active rather than passive mode. This allows them to take the initiative by making quick and effective decisions that positively impact their unit’s efficiency, profitability and overall performance.

Managers who utilize an effective performance management process and program will find that rather than complicate their lives, their jobs are made much easier. Decision-making is greatly simplified by performance management, as it provides a specific set of established parameters with which to make consistent and focused decisions that move the unit forward to the achievement of its goals. These parameters include:

Alignment of Goals and Objectives

The overall purpose of performance management is the alignment of unit/department goals and activities with the overall goals and objectives of the company.

The role of the manager is to ensure that all goals and activities of his or her individual employees directly contribute to the overall success of the unit. In this capacity, the manager establishes the individual goals and targets to assure that the overall objectives are obtained. Once this has been accomplished, any decisions to be made regarding the performance of individual employees must be made with each of their goals in mind. Managers are able to make decisions to ensure that every action and activity an employee makes advances him or her toward the accomplishment of their unit’s goals.

This decision-making parameter prevents individual employees from becoming “loose cannons,” ignoring their unit and company goals and performing in a way they view as expedient. It keeps the employees in line and focused. It also allows managers to fairly and consistently manage and evaluate individual performance against overall team goals.

Focus on the Target Market

Most corporate goals and objectives are designed to move a company forward, while maximizing the utilization of human and physical resources to enhance productivity, efficiency and profitability. In this pursuit, companies are increasingly gearing specific products and services to profitable niche markets where they can gain a competitive advantage.

The use of performance management techniques allows managers to redefine or refine the target market so that it is aligned with the objectives established by senior management. As a decision-making parameter, managers can guide and direct employees through plans to better focus their efforts on these intended niche markets.

As markets are increasingly more competitive, rapid changes and shifts in marketing strategies are often required. The use of performance management criteria allows managers to shift their people’s focus and ensure all decisions they make are consistent with this impetus.

Guidance

The company’s mission statement, goals and objectives provide guidance to the manager and the basis for their performance management program. Additionally, these provide managers with specific parameters with which to guide and direct their own actions and those of their employees, while also giving them the guidance they need when making decisions. There will be times when senior management may need to clarify issues and concerns, but the progression of goals and objectives should flow smoothly from senior management to the individual employee.

Benchmarks for Performance

One of the keystones of performance management is the ability to benchmark the individual work of each employee. These provide managers with the tools to monitor and evaluate performance as well as the basis for any decisions and actions that must be made.

The specific performance of an employee influences all decisions a manager makes concerning that individual. An employee performing at a high level will be given more leeway in the decisions made about him or her since results are being produced. A poorly performing individual will have more stringent decisions made about him or her.

Pinpointing Performance Problems

The use of specific metrics in a performance management program allows managers to make decisions regarding performance breakdowns. Initially, it allows the manager to pinpoint problems and take the proper corrective actions to immediately rectify them before they become a major issue.

Providing Focused Feedback

Performance management allows managers to make decisions and focus their feedback on issues directly related to the achievement of the individual employees goals and objectives. Any other issues distracting the employee that don’t contribute to the unit or department’s performance can be quickly and effectively handled and eliminated.

Excerpt: Performance Management: Pinpoint Management Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011)

Related:

Five Critical Steps to Maximize Performance

Execution: Six Action Steps

Performance Plans Create Results and Maximizes Performance

Objectives Allow Managers to Focus on Obtaining Results

For Additional Information the Author Recommends the Following Books:

Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series

Maximizing Financial Performance: Pinpoint Leadership Skill Development Training Series

Improving Workplace Interaction: Pinpoint Leadership Skill Development Training Series

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

Five Strategies to Maintain Your Focus

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While it is easy for managers to start out with the best of intentions, many can be detoured by the uncontrollable events impacting their professional lives and company. When a crisis occurs, there is a tendency to immediately confront the challenge. While well-intentioned and often necessary, managers should not allow this thinking to cause them to lose focus on their goals and development.

Maintaining a results-oriented focus takes discipline and perseverance in the face of constant interruptions that demand both the manager’s time and attention. If managers are focused in their thinking, it must be strategic in nature, focusing on the long-term growth of the business rather than on the problem or crisis demanding their immediate attention. The ultimate solution to every problem must fit into the long-term goals of the manager.

It is important for managers to grasp that maintaining a focus on long-term goals and objectives and attaining a desired outcome is the result of doing the right things, at the right time, and in the right sequence. Often managers allow uncontrollable events and problems to make them lose sight of or even abandon their long-term plan and goals.

Managers who want to successfully maintain a results-oriented focus that allows them to consistently achieve their goals and desired outcomes must:

Develop Mental Discipline

Successful managers have developed the mental discipline that keeps them focused on their goals regardless of the problems and uncontrollable events they may encounter. Such hurdles must be overcome on the path to the successful accomplishment of their objectives.

Mental discipline allows managers to always keep an eye on their goals. They consistently keep the summit of the mountain in view, and do not allow daily problems to impede their progress. While daily problems may cause a setback, managers always make sure they are moving forward one step at a time.

Managers should understand that the attainment of mental discipline takes a conscious effort and perseverance. While not an easy road, it is achievable.

Adopt Strategic Thinking

To achieve and maintain a results-oriented focus, managers must learn to take a protracted view of their business, which means acquiring and polishing strategic thinking skills. These skills allow managers to create their focus and form part of their personal vision—the top of the mountain—in the first place.

The long view is opposed to tactical thinking that focuses only on short-term day-to-day activities. As companies evolve, many are empowering their employees and delegating the tactical activities lower in the organization. Employees assume much of the day-to-day decision making that directly impacts their performance and relationships with customers.

Plan

While strategic thinking was considered passé and outmoded during the heyday of the dot-coms, it is now clear that a lack of planning contributed mightily to their downfall. Successful managers develop a realistic plan, work the plan and stick to it. It is a simple concept, yet does require discipline.

A great deal of a plan’s success lies in its execution. Many managers develop excellent plans, but, because they have not properly executed and held to them, fail to see their fruits. The best plans are not complex instruments, but simple and designed to be easily and effectively carried out.

Question Activities

Many managers have a natural tendency to want to control everything within their sphere of influence. Yet it is this desire that causes many to lose focus on their long-range plan as they attempt to personally put out every fire and handle every issue.

As leaders, managers must empower their employees and delegate the tasks, assignments and responsibilities that do not advance them toward the attainment of their desired outcomes. In this light, every activity on their to-do list and calendar must be questioned on a consistent basis; if a particular pursuit does not advance the manager toward the accomplishment of their goals, it should either be delegated or eliminated.

Monitor Results

Successful managers tie the metrics that measure their unit’s progress directly to their plans. They then determine the frequency and content of the report that allows them to actively monitor progress toward their own and the organization’s goals.

Additionally, managers have flags built into their metrics that immediately signal potential problems when the numbers reported to them are outside normal ranges. The report allows them to quickly act and resolve the problem before it gets out of hand.

Excerpt: Professional Development: Pinpoint Management Skill Development Training Series (Majorium Business Press, Stevens Point, WI 2011) $ 17.95 USD

Related:

Five Critical Steps to Maximize Performance

Execution: Six Action Steps

Performance Plans Create Results and Maximizes Performance

Objectives Allow Managers to Focus on Obtaining Results

For Additional Information the Author Recommends the Following Books:

Performance Management: The Pinpoint Management Skill Development Training Series

Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series

Maximizing Financial Performance: Pinpoint Leadership Skill Development Training Series

Improving Workplace Interaction: Pinpoint Leadership Skill Development Training Series

Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web| Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2013 Timothy F. Bednarz, All Rights Reserved

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