Performance management is a broad field and includes any activity you might undertake as a leader that is designed to ensure that personal and organizational goals are consistently achieved; most of your day-to-day activities make some contribution to the enterprise performance effort.
Performance management occurs at a number of levels as shown in the diagram:
- The effectiveness of an organization in achieving its goals must be monitored and managed.
- Performance across the various departments, functions and processes must be evaluated on a continuous basis.
- Individual performance of all employees must be monitored constantly in both formal and informal ways.
Although enterprise performance often is limited to the management of individual performance, it is important to recognize that it has to do with both the individual and the organization (strategic and operational aspects). In any case, improving individual performance in turn will positively impact on overall organizational performance.
Key elements of enterprise performance
Performance management, at whatever level, is a continuous process and, although the particular activities involved vary somewhat depending upon the nature of the performance being measured, there are general activities applicable to all:
