Having a clear vision for your organization and being aware of its external environment to prevent threats and capture opportunities instead. This is how strategic thinking works for Fadi Al-Jafari, a Senior Management Consultant, Leader of Data Analysis and Visualization Center, and Project Manager at The KPI Institute. In this interview, he explains what makes a strategy and performance manager successful and how organizations can make sound decisions on the spot.
Trends
What were the key trends in Organizational Performance Management in 2021, from your point of view?
Organizations are working on digitalizing performance management systems (PMS) and ensuring that individuals have the right digital tools to perform their duties as they work remotely nowadays.
Which of the existing trends, topics, or aspects within Performance Management have lost their relevance and/or importance from your point of view?
Regarding the vast changes in external environments, organizations are shifting their strategy planning and execution practices from the traditional approach to the agile approach to make sure they capture the external opportunities and avoid the external threats in the early stages. This will help them adapt in a fast manner to those changes.
What does the corporate performance management system of the future look like?
Digitalized PMS that connects and measures individuals, teams, and organizational work in a timely manner to help top management make decisions on the spot
What will be the major challenges in managing performance in the future, and how should organizations prepare for them?
The major challenges would be how to measure the individual’s performance right and without any biases, use the data to predict future the individual’s performance, and benefit from the data they have to improve the individual’s performance. One solution is to use digital PMS that collects data regularly and measures individual performance based on the tasks they work on and then use data analytics tools to draw conclusions and predictions based on the analysis.
How is technology impacting how organizations conduct strategic planning and manage performance? Any specific technology tools you would like to mention?
Technology is a key element in supporting strategy. Technology supports environmental scanning tasks as organizations can nowadays collect and analyze data on a timely basis. They can analyze their internal environment as well as their external environment. In addition, technology also helps in predicting trends.
Technology helps organizations gather real-time data and big data. Having such big real-time data helps organizations make sound decisions based on facts and figures. Using tools like Tableau and Power BI helps an organization create real-time dashboards that show the trends and changes in data. In addition, organizations can use those tools to predict outcomes to support proactive planning.
How does sustainability impact how organizations conduct strategic planning and manage performance? Any specific sustainability aspects you would like to mention?
Sustainability requires organizational objectives and strategy to consider the social welfare of the employees and communities.
Practice
The COVID-19 pandemic has caused disruptions in our day-to-day lives, social relations, economies, and business dynamics. Given the impact of the crisis, what do you think are the specific changes in the way strategic planning and performance management is being conducted post COVID?
Organizations should focus more on creating an intelligence unit that monitors the minor and major changes in the external environment on a continuous basis. This would help them identify risks or new trends that could affect the environment. This would also help organizations become more proactive and make decisions about needed actions once they have identified the risks.
What should be improved in using strategy and performance management tools to make an organization even more resilient to future crises?
Organizations should shift their mindsets from the usual strategic management approach to a more agile approach in planning and execution. This will help organizations adapt to changes faster based on external circumstances.
While navigating through these challenging times, what would you consider a best practice in Performance Management?
To start with an organizational architecture framework of the PMS, ensure that cascading and alignments are conducted properly. This also enables organizations to develop a governance framework, processes, and procedures to efficiently run the system and avoid internal silos.
How does benchmarking support the improvement of performance management and target-setting systems?
Benchmarking is a process that involves identifying and learning from the best performers in the organization. It helps develop new and challenging targets and measures that will support organizational growth.
Research
Which organizations would you recommend to be observed due to their approach to managing performance and its subsequent results? Why?
I would say Saudi Vision 2030 is a good example to be studied and followed at the national level. Organizations can follow this example and learn how the vision realization offices in Saudi handle such vision and ensure alignments between different entities. The results that Saudi achieves are astonishing, and it can be a great case study.
What aspects of Performance Management should be explored more through research, given their importance in practice?
Alignment approach between business units, departments, and divisions. This approach is requested a lot by clients to know how to handle such alignments internally.
What are the key competencies of a successful business leader ( C-level Executive)?
The business leader must show strategic thinking in terms of having a clear vision for the organization and having a clear goal of what they would like to reach in the future. The business leader must employ analytical and critical thinking to analyze the external environment, capture opportunities, and avoid external threats that could affect the organization.
What key competencies would make a Strategy and Performance Manager succeed nowadays?
An important one is strategic thinking — to be able to analyze different situations that the organization may face and to have a proactive personality that would allow them to capture changes in the market before they arise. It is crucial to identify the opportunities, capture them before the competitors do, and determine any threats to prepare the organization to deal with them.
What processes and tools do you look at when differentiating a successful performance management system from a superficial one?
To have a successful PMS, organizations must have a clear design and architecture of the PMS itself within the organization, and it must have top management support. Moving forward, the strategy office should develop this system internally and develop needed tools and needed processes that include but are not limited to: Strategic Planning Tools, Processes and Timeline; KPI Selection Tools and Processes, Departmental Cascading and Alignment Tools and Processes; Employee Cascading Tools and Processes, and Performance Culture Tools and Processes. In this manner, the organization will perform standardized tools and processes that support the internal alignment between all internal stakeholders. This will ensure clear steps for analyzing internal and external environments, standardized KPIs following best practices, and more aligned objectives on different levels.
In addition, it’s also important for the top management and strategy team to communicate the strategic objectives, values, and organizational identity to all employees. Unfortunately, some organizations keep those elements hidden from the employees, and this leads to misalignment internally, losing organizational direction, huge gaps, and silos between departments and negatively impacting employee engagement. Missing one of the abovementioned points would weaken the PMS within the organization.
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Background
As a Management Consultant, Fadi has been involved in multiple projects related to designing, implementing, and auditing Performance Management Systems. This includes formulating objectives, selecting KPIs, documenting KPIs, and selecting initiatives on both the strategic and functional levels as well as developing balanced scorecards and dashboards to fit organizational needs.
As a Facilitator, Fadi has been delivering Certified Strategy Business Planning Professional, Certified KPI Professional and Practitioner, Certified Performance Management Professional, Certified Employee Performance Management Professional, Certified BSC Professional, Certified Data Analysis Professional and Certified Data Visualization Professional, in both Arabic and English languages.
In an interview with The KPI Institute (TKI) Publishing Team, Ihab Ibrahim Mohamed Alsakkti, a Strategy and Performance Manager at Alkifah Contracting Company, shares his insights and expertise in organizational performance management for the next issue of Performance Magazine – Print Edition.
On the one hand, investing in sustainability is no longer a nice-to-have strategy. But it is absolutely a need-to-have strategy to ensure compliance with governmental and regulatory requirements.
Here is an excerpt of the interview, where Ihab highlights the effect of sustainability in strategy planning and performance management.
Hassan Khalid Al-Asaad, Strategist and Business Developer at Gulf Cooperation Council Interconnection Authority (GCCIA), believes that one of the future major challenges in managing performance is achieving employees’ happiness.
Employee happiness is one of the most important factors in running a successful, profitable company. Happy and engaged employees tend to miss less work, perform better, and support company innovation.
In this interview, he explains the critical role of pursuing the employees’ happiness, how it affects the performance of employees, and why organizations should exert more effort in research and development in attaining the happiness of employees.
Horizontal progression or lattices started to spread among employees, particularly millennials, years ago. Many individuals are working to progress their career paths horizontally instead of vertically. This raises two important questions: Is it better to move up the ladder or across it? Is it better for the companies to hire those who progress vertically or horizontally?
Vertical career progression refers to usual career growth within the same field. Being promoted from a marketing executive to a senior marketing specialist, and then to a marketing manager is an example of that progression. As for horizontal career progression, it refers to growing skills in more than one field. For instance, an individual may start working as a marketing executive, and then decide to shift to the sales department to gain more experience in selling products and dealing with customers.
Vertical career progression has always been the common career path in the workplace across the industries. However, change has been going on at a fast pace. All types of organizations (profit, non-profit, public and private) are all experiencing quick changes in various areas. Especially after the pandemic, things have developed massively, and new skills and competencies are arising everyday in the workplace, particularly in companies working on creating innovative and agile environments.
Benefits of Horizontal and Vertical Career Progression
Both types of career progression are essential and beneficial in the workplace as they will enable managers and leaders to have a wide range of skills within one department. With organizations reducing their boundaries every day due to the changes occurring–managers, leaders, and recruiters need to look at career progression from a different point of view other than the traditional one.
Employees going up the ladder will benefit their departments with their long experience and in-depth knowledge in terms of delivering their projects or tasks on time and with high quality. Even when they deal with their clients, they will be able to reflect easily using their long experience in the field. Moreover, they will be able to transfer their experience and knowledge to the younger ones via coaching, feedback sessions, and on-the-job learning.
Due to the wide range of skills, employees moving across the ladder are also vital and bring a positive impact to their departments. Despite their short experience within one field, they are equipped with a set of skills that will be beneficial to various situations. For instance, an employee who spends some time in the marketing and the sales department will have some experience not only in promoting the company’s products but also in communicating with the customers.
The marketing department can benefit from such employees in enhancing their customer outreach and passing on knowledge to others through tips or advice in communicating with customers. This can be valuable in companies trying to embed agility within their cultures. Most common types of agile environments include scrum and lean. These types of environments require flexibility, continuous problem solving and discovering solutions. As a result, both types of employees will provide lots of ideas and solutions. They will look at problems from different angles.
How Companies Support Employees’ Career Progression
According to Deloitte, due to today’s flatter organizational structures, businesses have less options for developing their employees and moving their career up the ladder. So, lattice organizations are expanding career tracks to incorporate lateral, diagonal, and planned descents as a strategy to help employees progress. They report that employees become more adaptable through career movements across organizational silos, improving their strategic flexibility.
Incorporating different options of career development will require companies to change the way their job structures, work cultures, and career development plans. However, companies will reap its sweet fruit through having more motivated and productive employees, innovative culture, better performance, as well as more flexibility and adaptability. Moreover, it will help companies face their current challenges such as high turnover rates and employees with limited skills that cannot balance the needs of today’s industry.
In the end, it is believed that even with all these changes undergoing in the world, both career paths are needed within the workplace. Employees get to choose the career path that suits their priorities and future plans. But at the same time, their choices have to be well planned and thought of because there is a huge difference between growing horizontally in a structured manner and hopping from one job to another. In the same context , companies need to go beyond the traditional linear career path and embrace other ones to be able to come up with the changes going on.
Whether you go up or across the ladder in choosing a career growth, it is important to be competent. Invite your colleagues and join The KPI Institute’s Certified Performance Management Professional course to boost the knowledge and skills on improving performance at all organizational levels. Visit The KPI Institute’s website for more information.
The value of Big Data has found its way to the core of many organizations.NewVantage Partners’ 2021 executive survey showed that 99.0% of the companies they surveyed are investing in data initiatives while 96.0% attest that Big Data and AI efforts were generating results.
However, working with Big Data is not easy for all companies. The survey revealed that 92.2% of leading companies consider culture (people, process, organization, and change management) as the top reason why becoming a data-driven organization remains challenging.
Organizations should recognize that integrating Big Data into performance management would allow them to further improve their performance , make strategic decisions, and achieve higher efficiency in many areas of business.
How does that happen? First, it is important to know what Big Data is and what it is not.
Big Data is not about having a higher volume of data. IBM defines Big Data as “a way of harvesting raw data from multiple, disparate data sources, storing the data for use by analytics programs, and using the raw data to derive value (meaning) from the data in a whole new way.”
Mayer-Schönberger and Cukier, authors of “Big Data: A Revolution That Will Transform How We Live, Work, and Think,” wrote that Big Data can generate new insights and develop new forms of value in a manner that changes how people live.
The reason is that Big Data can reveal trends and patterns. In an ever-changing business landscape, organizations working with Big Data would allow them to make decisions based on facts. This echoes what Geoffrey Moore, a famous American organizational theorist & author of “Crossing the Chasm,” was quoted saying: “Without big data analytics, companies are blind and deaf, wandering out onto the web like deer on a freeway.”
Big Data’s Role in Performance Management and Measurement
The value of Big Data lies in improving the performance and processes of an organization.
For instance, Big Data can provide insights into customer preferences. Understanding customer preferences and using them as a basis for strategies can lead to increased sales. With better forecasting, Big Data can guide companies in determining where they need to invest. A manufacturing company would be able to accurately identify the equipment that needs replacing. Moreover, the automation of high-level business processes can make organizations more effective and efficient.
In the conference paper, “Is Big Data the Next Big Thing in Performance Measurement Systems?” the authors concluded that the presence of a variety of data could expand the horizons of PMSs due to the application of different kinds of metrics. The applications of Big Data in PMS are in planning, controlling, and improving business performance as well as in strategic planning, controlling operations, and processes improvement.
The authors found the reasons for using Big Data and PMSs similar, and they revolve around decision-making and action-taking. “PMS supports decision-making [by] providing meaningful and appropriate data [developed] through a series of activities, such as analyzing and interpreting data from past actions to influence the future performance.”
Big Data in Action
The success ofNetflix, a streaming service company, is attributed to their usage of Big Data. For content development, their objective is to determine what their audience would want to watch next. To analyze the behavior and preferences of their over 140 million subscribers, Netflix used metrics, such as “What day you watch content,” “Searches on the platform,” “User location data,” “When you leave content,” “The ratings given by the users,” and even “Browsing and scrolling behavior.”
Netflix also uses Big Data in addressing challenges in production planning, such as determining shoot locations and arranging a shoot schedule. With prediction models, Netflix can minimize their efforts and reduce their expenses.
Xerox, the world’s largest provider of digital document solutions, once faced a problem with its workforce and needed to cut employee training costs and lower the premature attrition of its employee pool. With the help of Big Data, the company executed a predictive recruiting program in order to assess and filter applicants. Big Data and Big Data analytics helped them recruit people who have more technical skills and are more likely to stay longer with them. This means lower cost of training. The reduced attrition successfully helped the enhancement of Xerox’s bottom line.
Big data is a new source of competitive edge for any organization as it permits them to provide faster and more intelligent decisions, makes information more transparent, generates unprecedented insights into market situations and customer behavior, and optimizes business performance.
If you would like to discover new knowledge and the practical application of best practices used in analyzing statistical data, sign up for The KPI Institute’s Data Analysis Certification.
In an interview with The KPI Institute (TKI) Publishing Team
Hassan Khalid Al-Asaad, Strategist and Business Developer at Gulf Cooperation Council Interconnection Authority (GCCIA), believes that one of the future major challenges in managing performance is achieving employees’ happiness.
