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Sustainability reporting has been increasing in scope over the past years, given that the number of organizations worldwide issuing sustainability reports has been growing yearly, driven by several major trends, reflecting shifts in the regulatory, community, investor and consumer landscapes.
Q: What are the key drivers of sustainability in organizations, and what role does the performance management system play in creating a sustainable organization?
A: Sustainability is getting more importance after the United Nations Sustainable Development Goals 2015-2030 (17 SDGs, 169 targets), agreed upon by almost all nations. The main aim is to sustain resources for current and future generations with the most efficient and effective resource utilization, minimum environmental harm, best economic rates of return, and the most involvement and empowerment of societies.
The circular economy is one of the drivers for sustainability. It aligns directly with SDG 12 and indirectly with all other SDGs. Moreover, it focuses on transitioning from the current linear economy to a more sustainable closed-loop circular economy, where resources are minimized and products are recycled as the final stage. The closed-loop approach prioritizes reuse, refurbishing, and remanufacturing before recycling.
The European Foundation for Quality Management (EFQM) Model 2020 defines organizational excellence as the structured management of three pillars: Direction, Execution, and Results. The goal is to use integrated and agile methodologies to support lean execution and achieve sustainable results that meet or exceed stakeholders’ expectations.
Aligning sustainability, circular economy direction, and organizational excellence would support continuous positive impact and collaborative efforts among stakeholders.
Read more: Ask Our Experts: Principles on Creating Meaningful Sustainability Reports
Management Consultant,
Trainer, Advisor
The KPI Institute
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This feature was first published in the Ask Our Experts section of Performance Magazine Issue No. 25, 2023—Sustainability Edition. To download the free digital copy, visit the TKI Marketplace. You can also purchase an additional printed copy via Amazon.
Nothing ever stops in the fast-changing world of business—a fact that is not lost on Meshari Alotaibi, a data and strategic initiatives manager with extensive expertise in management consultancy, data analysis, and leadership.
A Saudi MBA graduate and Doctoral candidate in Management, he recently completed the Executive Postgraduate Diploma in Strategy and Performance from the KPI Institute. Meshari excels in strategy development, performance management, and transformational projects. He currently contributes to strategic initiatives for the consumer protection department at NEOM. In this interview, he touches on the importance of continuous feedback to drive improvement.
In your opinion, what are the key trends in Organizational Performance Management in 2024?
In 2024, organizations are adopting AI to track performance, foster agility, and enhance employee experience. AI tools provide real-time insights, enabling quick strategy adjustments and continuous improvement.
Which of the existing trends, topics, or aspects within Performance Management have lost their relevance and/or importance in your opinion?
Traditional annual reviews and rigid goals are becoming obsolete. Shifting to continuous feedback has significantly increased employee satisfaction and adaptability to changing business needs.
What does the corporate performance management system of the future look like?
Tomorrow’s systems will be more human-centered, with AI providing real-time feedback and agile goal-setting. AI tools deliver personalized development plans, promoting continuous improvement and engagement.
What will be the major challenges in managing performance in the future, and how should organizations prepare for them?
Challenges include staying ahead of tech changes, ensuring data privacy, and fostering a growth culture. Investing in tech training and robust data protection measures helps organizations stay ahead.
How is technology impacting the way organizations conduct strategic planning and manage performance? Any specific tools you would like to mention?
AI analytics and collaborative platforms are reshaping planning and performance. AI analyzes large datasets, informing strategic decisions and enhancing performance management.
How is sustainability impacting the way organizations conduct strategic planning and manage performance? Any specific aspects you would like to mention?
Sustainability is integral to strategy, focusing on profits and social and environmental impacts. Projects incorporating sustainability metrics ensure that environmental and social factors are part of performance evaluations.
What should be improved in using strategy and performance management tools to make an organization even more resilient to future crises?
Enhancing resilience requires agile scenario planning and real-time monitoring. During the pandemic, agile performance management systems enabled quick adaptation to remote work environments.
While navigating these challenging times, what would you consider a best practice in performance management?
Effective performance management during crises involves clear communication, flexible goal setting, and adaptability. Regular virtual meetings and adaptable timelines were crucial during remote transitions.
How does benchmarking support improving performance management and target setting systems?
Benchmarking helps identify strengths and weaknesses to set realistic targets. Benchmarking against industry leaders helps set ambitious yet achievable goals, driving continuous improvement and innovation.
Which organizations would you recommend being observed due to their approach to managing performance and its subsequent results? Why?
Google exemplifies innovative performance management that fosters employee growth. Their use of Objectives and Key Results (OKRs) effectively aligns team efforts with organizational goals.
Given their importance in practice, what aspects of Performance Management should be further explored through research?
Research should explore the impact of remote work on performance evaluation and enhancing diversity and inclusion metrics, which are crucial for navigating the post-pandemic work environment and striving for equitable workplaces.
What are the key competencies of a successful business leader (C-level executive)?
Visionary leadership, strategic thinking, and emotional intelligence are essential competencies for successful leaders. Leaders should exemplify these traits to drive ambitious projects with clear vision and adaptive strategies.
What are the key competencies of a strategy and performance manager that are necessary to succeed nowadays?
Successful managers need strong analytical skills, adaptability, and a deep understanding of performance metrics. Managers leverage data analytics to drive strategic decisions and continuously improve performance.
We are developing a database of subjects/degrees in Performance Management. What are your suggestions relevant to the database (i.e., subjects/degrees such as the Masters in Managing Organizational Performance)?
Consider offerings like “Advanced Performance Analytics” or “Strategic Performance Leadership” to deepen understanding. Incorporating real-world case studies enhances relevance.
What are the processes and tools you look at when differentiating a successful performance management system from a superficial one?
As a consultant, I focus on performance management systems that align with organizational goals and have clear metrics and robust feedback mechanisms. Ensuring integration with company culture and focusing on continuous improvement are crucial.
Read More: Practitioner interview: exploring trends and best practices for organizational excellence
Interested in more meaningful insights from professionals across the globe? Browse The KPI Institute’s repository of in-depth interviews here.
From new employee engagement to technology adoption, organizations must consider a variety of factors nowadays when conducting strategic planning and implementing performance management systems. In this interview, Yousef S. Aljomah, a program manager who works for a Saudi government entity, shares his insights on how organizations can navigate uncharted territories while getting results and staying true to their core values.
Yousef has over 15 years of experience leading high-impact strategic projects and programs in the public and private sectors. His expertise has allowed him to drive projects that align with organizational goals, improve efficiency, and promote innovation. He holds an impressive 20 certifications in strategic and project management and a Master of Science in Technology Management. Let’s find out what he thinks of today’s trends and practices in performance management.
In your opinion, what are the key trends in organizational performance management in 2024?
The path of organizational performance management in 2024 is significantly shaped by integrating AI tools. This strategic direction is in harmony with both public and private organizational development, harnessing AI-driven data analytics, integrated systems, real-time feedback mechanisms, personalized development plans, facilitation of remote work, DEI analysis, process automation, outcome-based metrics, agile methodologies, and sustainability tracking. These advancements are anticipated to drive efficiency and innovation, thereby making a meaningful contribution to the global transformation of organizational development.
Which of the existing trends, topics, or aspects within performance management have lost their relevance and/or importance in your opinion?
The outdated trends in performance management include annual performance reviews, rigid hierarchical structures, one-size-fits-all training programs, traditional office-bound work models, a sole focus on output metrics, top-down feedback mechanisms, and manual process management. On the other hand, AI tools prioritize flexibility, continuous improvement, and data-driven, inclusive approaches.
What does the corporate performance management system of the future look like?
AI will usher in the forthcoming corporate performance management system, which features integrated platforms, real-time feedback, personalized development, support for remote work, DEI emphasis, automated processes, outcome-based metrics, agile methodologies, and sustainability tracking. It will prioritize flexibility, continuous improvement, and data-driven, inclusive approaches.
What will be the major challenges in managing performance in the future, and how should organizations prepare for them?
In the future, managing performance will involve dealing with significant challenges such as adapting to rapid technological changes, ensuring data privacy and security, maintaining employee engagement in remote work, addressing skill gaps, fostering DEI, and managing continuous feedback. To tackle these challenges, organizations should invest in training, robust cybersecurity measures, flexible work policies, DEI initiatives, and advanced analytics tools.
How is technology impacting the way organizations conduct strategic planning and manage performance? Any specific tools you would like to mention?
Technology is revolutionizing strategic planning and performance management by improving data analysis, real-time monitoring, and decision-making. AI and machine learning (ML) offer predictive insights, while cloud-based platforms facilitate collaboration and scalability. Notable tools include Microsoft Power BI for data visualization, OKR software such as BetterWorks for goal alignment, and AI-driven HR platforms like Workday for comprehensive performance management.
How is sustainability impacting the way organizations conduct strategic planning and manage performance? Any specific aspects you would like to mention?
Sustainability is reshaping strategic planning and performance management by integrating ESG criteria into business objectives. Organizations are setting measurable sustainability goals, such as promoting sustainable project management practices, enhancing resource efficiency, and advancing social responsibility. Specific aspects include incorporating green project management principles, efficient resource allocation, and fair labor practices, using tools like the Project Management Institute’s (PMI) Code of Ethics and Professional Conduct and ethical decision-making frameworks.
Read More: No “I” in team: the significance of multilateral coordination between government entities
What should be improved in the use of strategy and performance management tools to make an organization even more resilient to future crises?
To enhance organizational resilience, strategy and performance management tools should improve real-time data collection and analytics for faster, data-driven decision-making. Tools should support agile methodologies, integrate robust risk assessment and mitigation features, and foster cross-functional collaboration. Additionally, incorporating advanced scenario planning, employee well-being monitoring, AI, automation, and sustainability metrics will help organizations better navigate uncertainties and maintain performance during crises.
While navigating through these challenging times, what would you consider a best practice in performance management?
During challenging periods, it is advisable to incorporate real-time feedback mechanisms and continuous performance evaluations. These approaches promote agility, maintain employee alignment with evolving objectives, cultivate continuous development, and facilitate prompt adaptation to strategies. Consequently, they also strengthen resilience and sustain productivity.
How does benchmarking support the improvement of performance management and target-setting systems?
Benchmarking helps improve performance management and target-setting systems by comparing them to industry standards and best practices. It identifies performance gaps, sets realistic and competitive targets, fosters continuous improvement, and encourages the adoption of proven strategies. Ultimately, it enhances overall organizational efficiency and effectiveness.
Which organizations would you recommend being observed due to their approach to managing performance and its subsequent results? Why?
In Saudi Arabia, several organizations—namely Elm, Saudi Arabian Military Industries (SAMI), and NUPCO—are Public Investment Fund (PIF) entities known for their exceptional performance management approaches. These organizations have significantly improved their service quality and customer satisfaction through digital transformation efforts and data analytics. Their emphasis on innovation and continuous improvement demonstrates best practices, resulting in enhanced operational efficiency and alignment with the objectives of Saudi Vision 2030.
Given their importance in practice, what aspects of performance management should be further explored through research?
Some key areas for further research in performance management include the impact of AI and ML on performance outcomes, the effectiveness of real-time feedback systems, strategies for enhancing employee engagement and motivation, the role of agile methodologies in performance management, and the integration of sustainability metrics. Understanding these areas is crucial to improve organizational efficiency and achieve strategic goals.
What are the key competencies of a successful business leader (C-level executive)?
The key competencies of a successful C-level executive include a strategic vision, strong decision-making and leadership skills, excellent communication, financial acumen, the ability to drive innovation, and adaptability. They also need to possess ethical judgment, resilience, customer focus, and a global perspective. These skills enable effective interaction with stakeholders, adaptation to market changes, and successful organizational leadership.
What are the key competencies of a strategy and performance manager that are necessary to succeed nowadays?
The key competencies of a successful strategy and performance manager include strong analytical skills for data-driven decision-making, excellent communication and leadership abilities, strategic thinking, and the ability to drive continuous improvement. Proficiency in performance management tools, knowledge of AI, adaptability to change, and a focus on achieving organizational goals are also essential.
What processes and tools do you look at when differentiating a successful performance management system from a superficial one?
When distinguishing between a successful performance management system and a superficial one, it is important to consider the following key processes and tools: goal-setting tools, data-driven decision-making tools, and agile practices.
Read More: Strategy and performance management in government: top tools and best practices
Performance Magazine is your source of strategy and performance management perspectives from practitioners and professionals around the world. For more interviews, click here.
Discover insights from Rami Al Tawil, General Manager of Organizational Excellence at Al Saedan Real Estate Company, as he shares expertise honed over nearly two decades. With a master’s degree in industrial engineering from Jordan University of Science and Technology, Rami specializes in aligning strategic visions with employee performance. In this interview, he shares his perspectives on cultivating best practices for achieving organizational excellence and the trends shaping performance management.
In your opinion, what are the key trends in organizational performance management in 2024?
Organizational performance management trends emphasize data-driven decision-making, continuous feedback loops, and employee-centric approaches. Remote work requires the adoption of virtual performance management tools, while agile methodologies and technology drive adaptability. This year, focus areas include employee well-being, skill development, and DEI considerations within performance frameworks.
Which of the existing trends, topics, or aspects within performance management have lost their relevance and/or importance in your opinion?
From my point of view, traditional annual performance reviews conducted without ongoing feedback and coaching are losing relevance. Organizations now prioritize continuous and dynamic performance management approaches. Employees and managers alike increasingly seek real-time feedback and coaching to drive growth and development.
What does the corporate performance management system of the future look like?
The corporate performance management system of the future integrates AI for data-driven insights and predictive analytics. It fosters continuous feedback and coaching, leveraging virtual platforms for remote collaboration. AI-driven tools facilitate personalized recommendations, enhancing efficiency and aligning individual goals with organizational objectives for agile adaptation and innovation.
What will be the major challenges in managing performance in the future and how should organizations prepare for them?
Major challenges in managing performance in the future include adapting to remote work dynamics, ensuring fairness and inclusivity in performance evaluations, and leveraging AI ethically. To address these challenges effectively, organizations must invest in virtual performance management tools, foster a culture of transparency and equity, and establish clear guidelines for AI use, respectively. Additionally, prioritizing employee well-being and skill development will be crucial for navigating evolving work environments and maintaining performance excellence.
How is technology impacting the way organizations conduct strategic planning and manage performance? Any specific tools you would like to mention?
Technology transforms strategic planning and performance management with tools like business intelligence software for data-driven insights, performance management software for goal-tracking, and AI for forecasting and trend analysis. Examples include Tableau, SAP BusinessObjects, Power BI, and Oracle Hyperion, which are empowering agile decision-making and operational efficiency in organizations.
How is sustainability impacting the way organizations conduct strategic planning and manage performance? Any specific aspects you would like to mention?
Sustainability drives organizations to integrate ESG factors into strategic planning and performance management. Key aspects include carbon footprint reduction, energy efficiency, waste management, ethical sourcing, diversity, and community engagement. Incorporating sustainability metrics allows for progress tracking, target setting, and brand reputation enhancement while meeting regulatory requirements and attracting investors.
What should be improved in the use of strategy and performance management tools to make an organization even more resilient to future crises?
Enhancing organizational resilience demands comprehensive improvements in strategy and performance management tools. This entails incorporating real-time data analysis, scenario planning, and integrated risk management. Cross-functional collaboration, flexible goal setting, and continuous improvement are essential, alongside employee empowerment and technology investment. Leadership commitment and learning from crises drive agile adaptation and proactive response, ensuring the organization remains robust amidst future challenges.
While navigating through these challenging times, what would you consider as a best practice in performance management?
During challenging times, a best practice in performance management involves frequent communication and feedback sessions between managers and employees to clarify expectations, assess progress, and provide support. Emphasizing flexibility in goal setting and adjusting performance metrics to reflect changing priorities is crucial. Additionally, fostering a supportive and transparent work environment where employees feel valued and empowered to contribute their best efforts improves overall resilience and adaptability.
How does benchmarking support the improvement of performance management and target setting systems?
Benchmarking enhances performance management and target setting by comparing an organization’s metrics with industry standards. It identifies areas for improvement, aligns goals with best practices, and fosters a culture of continuous learning. This process informs strategic decisions, setting realistic targets and driving overall performance improvement in line with industry benchmarks.
Read more: Ask Our Experts: choosing the right KPIs in measuring public services performance
Which organizations would you recommend being observed due to their approach to managing performance and its subsequent results? Why?
Organizations renowned for their effective performance management approaches like Saudi Aramco, Saudi Basic Industries Corporation (SABIC), and Saudi Telecom Company (STC) are notable for their performance management practices. Saudi Aramco, as a global energy leader, emphasizes operational excellence and continuous improvement. SABIC, a diversified chemical company, focuses on innovation and sustainability. STC, a leading telecommunications provider, prioritizes customer-centric strategies and digital transformation. Studying their approaches offers insights into effective performance management.
Given their importance in practice, what aspects of performance management should be further explored through research?
Analyzing the impact of performance management practices on employee engagement and satisfaction offers insights for optimizing systems, enhancing motivation, and improving retention strategies. Understanding these dynamics is vital to create a conducive work environment that fosters long-term commitment and productivity among employees.
What are the key competencies of a successful business leader (C-level executive)?
The key competencies of successful C-level executives include strategic vision, leadership, decision-making, communication, adaptability, problem-solving, innovation, resilience, strategic networking, and trustworthiness. These competencies enable effective leadership, drive organizational success, and foster a culture of trust, innovation, and growth.
What are the key competencies of a strategy and performance manager to succeed nowadays?
The key competencies for strategy and performance managers include strategic thinking, data-driven decision-making, agility in adapting to change, effective communication, and leadership. They must excel in analytics, continuous improvement, fostering collaboration, and leveraging technology. Adaptability, resilience, and a focus on innovation are also crucial for success in today’s dynamic business environment.
What are the processes and tools you look at when differentiating a successful performance management system from a superficial one?
From a consultant’s perspective, it is crucial to analyze processes like goal setting, feedback mechanisms, and performance appraisal methods. Examining the integration of data analytics, employee development initiatives, and alignment with organizational strategy distinguishes a successful performance management system from a superficial one, with the former ensuring effectiveness and tangible results.
Discover more perspectives from practitioners in the realm of strategy and performance management here.
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