John Colbert of BPM Partners has written a revealing summary of his firm’s 2009 annual BPM Pulse Survey about Performance Management posted on the B-eye Network. The first survey was in 2004, and the survey’s trends can be analyzed.
A highlight for me is John’s observation, “More companies than ever are implementing performance management initiatives.” An important point here is that there are many types of performance initiatives, arguably dozens including profitability optimization and strategic planning. Executives select which initiative to pursue like choosing your food in a cafeteria line. The selections for any organization will depend on what is most desired. However, a key to getting synergy is to both integrate the initiatives’ methodologies and imbed analytics of all flavors in each
- especially predictive analytics.
I never doubted that the rate of implementation of initiatives would accelerate. The ROI on them is obvious despite the difficulty to measure their ROI. With more learning experiences understood, the administrative effort and cost of implementing them is going down. Also, the prudent organizations realize there can be a negative ROI with the less obvious choice of not implementing these initiatives and therefore perpetuating decision making and strategy execution with the flawed or weak information they are currently using. Software technology supports and enables each methodology. Software is no longer the impediment it was a few years ago; they are proven. For example, my employer SAS offers a comprehensive suite. The impediment is the executive team having the will to adopt the Performance Management methodologies.
John also states, “… performance management is an ever evolving project that is never really ‘complete.’ ” This is my belief too. I have stated that there is no organization on the planet Earth that has completed the full vision of the Performance Management framework. But the smart and healthy ones have travelled far. It is like running a marathon without a finish line. But it is better to be running in the lead.