a pool of operational data. Everyone in the organization knows and understands their objectives to the metrics under their responsibility, and is alerted if trends or breaches occur. In such events, concerned persons and teams take initiatives to launch improvement processes. Analysis of root cause and action to prevent recurrence are initiated and followed trough until effectiveness was confirmed. Our organization has a schedule in place to review the strategy, indicators and objectives. The entire performance management system is adapted and updated based on the results of the reviews.
Many companies today stop at either the point where the success factors are measured or at the point where analysis is needed to prevent recurrence. The mission of Stratorama is to support you and your company in your efforts to gain a competitive advantage through a Performance Management System (PMS). We want you to be able to completely fulfill the profile of the ideal performance management structure.
Background
A common goal of every organization around the globe is being successful in a highly competitive and fast-changing business world. The approach to achieve such goal is the individual choice of leadership and top management of those companies.
In one form or another, strategies are developed, defined and deployed. Management then uses those strategies and plans as a roadmap towards desired goals and a vision. It is generally accepted that good strategies give growing organizations that leading edge.
However, having a breakthrough strategy is only part of the game. Your key to success lies in the execution of those strategies. You must translate that strategic plan into actionable terms, and eventually, confirm and validate those actions for their effectiveness.
Too often, such strategic plans are based on the financial budget, only. Since financial reporting is a regulatory requirement and generally understood by executives, it serves conveniently as the sole measurement tool of an organization’s performance. Finance reports are dominated by key figures about sales, expenses, earnings, productivity and many other pieces of important operational information. Indeed, they report the financial performance of your company and its subordinate operations, but those figures are the results of past action and activities.
With the increasing pace of changes in the global business world, your organization cannot compete if adjustments to the strategy are undertaken based on financial reports with lagging indicators only. You need a system that also measures the performance of your business processes relevant to the execution of the strategy. Such a system takes a holistic approach by including processes in all relevant levels and functions of your organization, and it has a healthy balance between leading and lagging indicators.
Your focus must also be broadened to a wider perspective that includes aspects such as customer, supplier, employees, process, quality, development, environment and more.
A PMS provides the framework to translate your strategies into actionable terms and enables you to establish metrics to monitor them. The creation of a PMS requires evaluation and understanding of both internal and external factors of your organization. Only a systematic approach that considers all important elements in the PMS will result in successful and effective results.
The PMS requirements of your organization are as unique as your organization is, itself. Pre-defined templates or models can be useful for a jump start but will not sustain or develop your organization’s long-term goals if each element is not reviewed and adapted to your particular needs. Mediocre and superficial evaluation of the PMS elements can weaken and undermine your expected success. Each element of the system must be consciously established to support each other in a vigorous relationship.
Whether you have a PMS in place or are contemplating establishing one, the information on this site is designed to increase your ability to make those decisions. We provide you with dynamic information about each element of a PMS, and we offer assistance in developing those elements to build a PMS that will help you get the edge you need to beat out your competitors.
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