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Make 8 Popular Performance Tools Work for You

By Dennis McCafferty on 2012-02-13


Do you often find yourself wondering exactly why you're using performance tools because they're more trouble than they're worth? They may arrive with fanfare, but eventually you wind up feeling like a kid who ordered X-ray glasses from a comic book ad: duped. The book "Beyond Performance Management: Why, When, and How to Use 40 Tools and Best Practices for Superior Business Performance" (Harvard Business Review Press/available in February), reveals that 30 percent of performance and management tools fail to deliver what they promise. To avoid this, authors Jeremy Hope and Steve Player break down the typical flaws found within 40 of these initiatives, and then establish best practices to get the most out of your efforts. Some of those selected, such as CRM and BI, are of interest to CIOs. Others are traditional tools that have served a broad range of managers for decades. Hope, now deceased, was research director for the Beyond Budgeting Round Table, a collaborative effort to promote shared learning/performance management research. Player is program director of the Beyond Budgeting Round Table North America and founder/management director of The Player Group, a planning, performance measurement and cost management consultancy. For more about the book, click here.

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Mission Statements


Problem: Sole focus on shareholders leads to impulsive decisions to get results too quickly.

Mission Statements


Solution: Include great products, happy customers and loyal staff as part of the mission.

Strategic Planning


Problem: Top-down directives are too rigid to adapt to changing business conditions.

Strategic Planning


Solution: Build in flexibility for short-term, tactical moves that respond to change while supporting “big picture” strategies.

CRM


Problem: It’s perceived strictly as statistical depiction of behavior. Data results in attempts to “forcefeed” products to consumers.

CRM


Solution: Align CRM tools with “real” customer feedback to gain better insight into the human side of the equation.

Knowledge Management


Problem: Leaders assume that information input equals knowledge output.

Knowledge Management


Solution: Avoid information “just in case” overload with a “just in time” approach instead.

ERP


Problem: Moving customer and supplier records, product data and processes to a new system is time-consuming and costly.

ERP


Solution: Streamline transition by eliminating the irrelevant. Use a single ERP system and one database.

Business Intelligence


Problem: Complex interface discourages user acceptance and deployment.

Business Intelligence


Solution: Start simple and grow interface over time to engage those on front lines.

Performance Appraisals


Problem: Annual approach doesn’t account for changing conditions, goals or standards.

Performance Appraisals


Solution: Make sure objectives are updated, and give performance feedback emphasizing development throughout the year.

Shared Services


Problem: Unifying processes across-the-board creates “one size fits all” results that disrupt valued, distinctive strategic operations.

Shared Services


Solution: Stick with shared services for transactions that are high volume, similar and routine.

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