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Posts Tagged ‘Performance planning

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

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Performance Plans Create Results and Maximizes Performance

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planning

A performance plan differs from a conventional plan in that it is a proactive document. It is designed for continuous use throughout the year as a guide and reference tool to direct the leader and his or her unit’s activities. The primary purpose of a performance plan is to create results and maximize performance.

Managers often produce an annual performance plan only to give senior management what they want to see. Leaders view performance planning as an opportunity to review and analyze actual past performance. It gives them the means to identify ways to improve their personal and organizational unit’s overall performance and productivity.

Managers as leaders actively use their performance plan to drive the unit’s as well as their own performance. They continually reference their performance plan as a roadmap throughout the year to guide and direct their activities and courses of action as well as those of their subordinates.

Leaders work and plan under the direction of senior management. They define overall strategic company goals and plans. Senior management also forms operational and tactical strategies directing the company’s activities during the year. Typically leaders are responsible for specific aspects of the operational and tactical plans. Their performance plans are directly linked to their assigned goals and objectives. How leaders accomplish these goals and objectives is self-defined. This is where they are given an opportunity to shine.

As was discussed in the previous lesson, leaders are driven by a vision of what is possible, not expected. In formulating a performance plan, leaders begin with an initial preparation before it is formally written and executed. This preliminary process includes:

Collecting and Correlating Data

Leaders collect and correlate the information and data they developed during a review of their organizational unit’s prior performance. This provides a complete picture of the unit’s successes and weaknesses. It helps pinpoint how successes can be capitalized on, and identifies the problems and issues that must be resolved to maximize the unit’s performance.

Leaders ensure their plans coincide with their vision. This is necessary if their vision is to be attained. They analyze and make sure plans can be incorporated into their overall goals and objectives.

The information collected from these two planning activities provides reliable insight and direction. It shapes how performance plans are to be formulated and becomes the foundation for all future performance plans.

Brainstorming

Leaders obtain input and feedback from all members of their unit. This strategy works to bring individual members “on board.” It greatly increases the probability they will accept the plan and implement the necessary strategies to make it successful.

Leaders use brainstorming to get reliable feedback. They use this feedback to creatively approach the development of their performance plan. They need to “think outside of the box” to view their goals and objectives creatively and without bias. Brainstorming accomplishes this by encouraging entrepreneurial thinking. Then leaders can easily define the issues concerning maximizing unit performance from various perspectives.

The purpose of brainstorming is not only to identify ways to achieve goals and complete tasks. It is used as a method to seek out information and ideas for exceeding normal expectations. Leaders always look for ways to optimize performance and results. Effective brainstorming also helps them improve budgetary performance as it maximizes the use of assigned resources.

Formulating Plans

Throughout the preparation and brainstorming phases of planning, the performance plan begins to take shape. Senior management has assigned the overall goals and objectives. The feedback and the analysis of the organizational unit details what needs to be accomplished. From this information, assumptions can be made that will form the basis of the plan.

Leaders clarify the specific direction the organizational unit will take. The steps needed to achieve this direction are carefully outlined and detailed. Each step is then formulated into specific objectives along with the activities required to attain the chosen course of direction.

From this information, leaders assign specific tasks and responsibilities to each individual unit member. These assignments become part of the performance plan, assuring that all objectives will be accomplished.

Leaders make sure each subordinate assigned to a task or responsibility has the necessary resources to be successful. Additionally, each task and responsibility includes established milestones so subordinates understand exactly what they need to do, by when. Milestones provide leaders with performance standards to ensure assigned tasks and responsibilities are accomplished in a timely fashion. This allows for effective managing of the performance plan as well as making modifications when needed.

Formalizing Plans

The final step of performance planning is to formalize a written plan. This becomes the actual management tool that guides and directs the organizational unit in the accomplishment of its goals and objectives.

The degree to which plans need to be refined will vary according to company standards. However, leaders make sure their plan clearly and precisely details the goals and objectives of the entire organizational unit. They write these in clear, easily understood language. Plans also include a timeline plotting each task, responsibility and milestone. Each time segment details the individual(s) responsible for specific tasks and their accomplishment and defines the resources to be allocated. All supporting data collected throughout the planning process is included to substantiate the plan, as well as the list of assumptions the plan is based upon.

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

Related:

Plans Must Be Rooted in Past Performance

Measure What Needs to Be Measured

Performance Driven Leaders Must Establish Clear Employee Expectations

Decision-Making Begins When an Action Needs to Be Taken

For Additional Information the Author Recommends the Following Books:

Maximizing Financial Performance

Strengthening Leadership Performance

Performance Management

Problem Solving

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

Measure What Needs to Be Measured

with 8 comments

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

If you would like to learn more about performance planning techniques, refer to Planning to Maximize Performance: Pinpoint Leadership Skill Development Training Series. This training skill-pack features eight key interrelated concepts, each with their own discussion points and training activity. It is ideal as an informal training tool for coaching or personal development. It can also be used as a handbook and guide for group training discussions. Click here to learn more.

Use promo code XC9OTF47 to receive 10% discount on this book.
________________________________________________________________________
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 Foreward Reviews‘ Book of the Year)
Linkedin | Facebook | Twitter | Web | Blog | Catalog |800.654.4935 | 715.342.1018

Copyright © 2012 Timothy F. Bednarz, All Rights Reserved

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