Let’s focus on the main issues:
1. Ownership: most of the times Finance or ICT is in the lead in the project. Of course, it seems logical and their involvement is important. However, only the CEO can be the owner and driver of such of project or program.
2. Planning & Control: as a consequence of wrong ownership, the Performance Management set up is fully linked to the Planning and Control processes. This seems logical, but managing a business or organisation normally required a frequency that goes far beyond monthly reporting of KPI’s.
3. Organisation structure: performance is monitored reviewing departments. The organisational structure determines the performance management structure. Customer processes, and it’s ownership, is totally lacking.
4. KPI list every month: embracing the P&C cycle means every month reporting your KPI’s to your superiors, where in fact it should be used to improve your own performance. You are using it the please the upper level management.
Successful Performance Management programs ask for CEO for driving it, during and after implementation. The setup should be fully process oriented to have the customer voice in your performance management system and to link it to the shop floor. Process ownership is key. The pace of the process determines reporting frequency. Reviewing performance could even be on a minute by minute or daily basis, involving all departments that construct a customer value chain.