Applied performance management sub- processes, tools and techniques within an organizational environment are a powerful driver for business development. However, it is not enough to operate randomly with these tools, they have to be aligned and integrated within a performance management system. When such aspect is not a priority in performance management inputs, outputs and outcomes will aim for different goals.
The Government of Kerala closely monitors the performance of its departments in a system known as the Performance Monitoring and Evaluation System (PMES), where each department has to prepare a Results-Framework Document (RFD).
RFDs are performance reports that show how well departments have managed their performance during the previous year. They are structured into 6 parts:
Nowadays, key performance indicators (KPIs) are common management tools that enable managers to better understand their business and improve performance. Although their terminology may vary from one company to another (performance indicators, performance measures or KPIs), in essence all these terms have the same meaning. According to The KPI Institute, a key performance indicator is a measurable expression for the achievement of a desired level of results in an area relevant to the evaluated entity’s activity.
The field of performance management is a relatively new area, where tools and techniques may not be very well structured and terminology is sometimes ambiguous. Bringing more clarity in regards to key concepts can reveal a more efficient way of using KPIs.
Selecting KPIs is an important step in the process of measuring performance. In order to ensure the right KPIs are chosen for each objective, managers should have a wide understanding on what KPIs are. KPI typologies present various ways to look at performance indicators and create logical clusters. Grouping KPIs on specific criteria provides more clarity in regards to what is measured in relation to the objective assigned.
“The PEEL reports enable the public to judge our performance as a whole… anything that makes it easier for people to hold us to account and get involved with local policing has to be a good thing”, are the words of Constable Chris Sims – West Midlands Police Chief, in reference to the performance report released by Her Majesty’s Inspectorate of Constabulary (HMIC).
In the multitude of Performance Management tools available to be deployed across organizations, managers can become confused, while trying to identify what tools to use, when and how.