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Examples of Organizational Performance Management

Systems
There are numerous, major methods and movements to regularly increase the
performance of organizations. Each includes regular recurring activities to establish
organizational goals, monitor progress toward the goals, and make adjustments to achieve
those goals more effectively and efficiently. Typically, these become integrated into the
overall recurring management systems in the organization (as opposed to being used
primarily in one-time projects for change -- see Organizational Change and Development
to Improve Performance later on below).

Any or all of the following approaches will improve organizational performance


depending on if they are implemented comprehensively and remain focused on
organizational results. Some of the following, e.g., organizational learning and
knowledge management, might be interpreted more as movements than organization
performance strategies because there are wide interpretations of the concepts, not all of
which include focusing on achieving top-level organizational results. However, if these
two concepts are instilled across the organization and focus on organizational results,
they contribute strongly to organizational performance. On the other hand, the Balanced
Scorecard, which is deliberately designed to be comprehensive and focused on
organizational results, will not improve performance if not implemented from a strong
design.

The following descriptions are general and brief. Follow the link to get more information
about each of the approaches.

NOTE: There certainly are other approaches than those listed below for a planned,
comprehensive approach to increasing organizational performance. It may very well be
that the vast majority of approaches used in organizations are highly customized to the
nature of the organizations, and therefore not publicized or formalized in management
literature.

Balanced Scorecard: Focuses on four indicators, including customer perspective, internal-


business processes, learning and growth and financials, to monitor progress toward
organization's strategic goals

Benchmarking: Using standard measurements in a service or industry for comparison to


other organizations in order to gain perspective on organizational performance. For
example, there are emerging standard benchmarks for universities, hospitals, etc. In and
of itself, this is not an overall comprehensive process assured to improve performance,
rather the results from benchmark comparisons can be used in more overall processes.
Benchmarking is often perceived as a quality initiative.
Business Process Reengineering: Aims to increase performance by radically re-designing
the organization's structures and processes, including by starting over from the ground
up.

Continuous Improvement: Focuses on improving customer satisfaction through


continuous and incremental improvements to processes, including by removing
unnecessary activities and variations. Continuous improvement is often perceived as a
quality initiative.

Cultural Change: Cultural change is a form of organizational transformation, that is,


radical and fundamental form of change. Cultural change involves changing the basic
values, norms, beliefs, etc., among members of the organization.

ISO9000: Is an internationally recognized standard of quality, and includes guidelines to


accomplish the ISO9000 standard. Organizations can be optionally audited to earn
ISO9000 certification. Another major quality standard is the Baldridge Award. ISO9000
is a quality initiative.

Knowledge Management: Focuses on collection and management of critical knowledge


in an organization to increase its capacity for achieving results. Knowledge management
often includes extensive use of computer technology. In and of itself, this is not an
overall comprehensive process assured to improve performance. Its effectiveness toward
reaching overall results for the organization depends on how well the enhanced, critical
knowledge is applied in the organization.

Learning Organization: Focuses on enhancing organizations systems (including people)


to increase an organization's capacity for performance. Includes extensive use of
principles of systems theory. In and of itself, this is not an overall comprehensive process
assured to improve performance. Its effectiveness toward reaching overall results for the
organization depends on how well the enhanced ability to learn is applied in the
organization.

Management by Objectives (MBO): Aims to align goals and subordinate objectives


throughout the organization. Ideally, employees get strong input to identifying their
objectives, time lines for completion, etc. Includes ongoing tracking and feedback in
process to reach objectives. MBO's are often perceived as a form of planning.

Outcome-Based Evaluation (particularly for nonprofits): Outcomes-based evaluation is


increasingly used, particularly by nonprofit organizations, to assess the impact of their
services and products on their target communities. The process includes identifying
preferred outcomes to accomplish with a certain target market, associate indicators as
measures for each of those outcomes and then carry out the measures to assess the extent
of outcomes reached.
Program Evaluation: Program evaluation is used for a wide variety of applications, e.g.,
to increase efficiencies of program processes and thereby cut costs, to assess if program
goals were reached or not, to quality programs for accreditation, etc.

Strategic Planning: Organization-wide process to identify strategic direction, including


vision, mission, values and overall goals. Direction is pursued by implementing
associated action plans, including multi-level goals, objectives, time lines and
responsibilities. Strategic planning is, of course, a form of planning.

Total Quality Management (TQM): Set of management practices throughout the


organization to ensure the organization consistently meets or exceeds customer
requirements. Strong focus on process measurement and controls as means of continuous
improvement. TQM is a quality initiative.

NOTE: There are various other approaches that, if used comprehensively with strong
focus on achieving organizational results, can be used to increase organizational
performance, e.g., Statistical Process Control, Quality Circles, best practices, etc.

Organizational Assessments
When seeking to improve the performance of an organization, it's very helpful to
regularly conduct assessments of the current performance of the organization.
Assessments might be planned, systematic and explicit (these often are the best kinds of
assessments) or unplanned and implicit. Well-done assessments typically use tools, such
as comprehensive questionnaires, SWOT analyses, diagnostic models (we often use these
models without recognizing or referring to them as such), etc., along with comparison of
results to various "best practices" or industry standards. The following tools might be
useful to you.

Organizational Assessments (For-Profits)

Selecting from Among Publicly Available Assessments

Read more about online tools that include suggested "best practices" against which to
compare results of your assessment.
Minimizing Bias in Organizational Surveys: Guidance for the Practical Researcher
Organizational Health Survey
Founder's Syndrome -- How Organizations Suffer -- and Can Recover
The following links are to additional assessments, and include information about what
should really be measured -- performance.
A Study of New Zealand Business Practices and Performance
The Balanced Scorecard and the Small Business
Small Business Owner/Operator Competency Guidelines
Competencies and managerial effectiveness: putting competencies to work

Organizational Assessments (Nonprofits)

Selecting from Among Publicly Available Assessments

1. United Way Management Indicators List


(This is a comprehensive, behaviors-based tool that also includes a suggested
"best-practices" standard, as well.)
Go to http://www.managementhelp.org/org_eval/uw_list.htm
(There are online, modified versions of this tool available here.)
2. Drucker Five-Question Self-Assessment Tool
(Guru, Peter Drucker, suggests five, overall, primary questions that must be
answered about any organization. There is a detailed workbook that can be bought
in order to guide the reader to answer the questions. For now, you might consider
the five key questions.)
3. Minnesota Council of Nonprofits "Principles and Practices"
(This is widely recognize, comprehensive, principles-based assessment tool that
suggests principles for effectiveness in many of the major functions in
nonprofits.)
4. Maryland Association of Nonprofit Organizations "Standards of Excellence"
(This is a widely recognized, principles-based assessment tool that suggests
principles for effectiveness in many of the major functions in nonprofits.)
5. Assessment for Start-Up Organizations
From LaPiana Associates, this
6. Fieldstone's Nonprofit Life-Stage Assessment
(Includes descriptions of the various life cycles of nonprofits, and associates
recommendations ("best practices"?) to address each)

Also see:

Capacity Building (nonprofits)


Outcomes-Based Evaluation
Program Evaluation
Designing Assessment and Evaluation Tools
One Organizational Diagnostic Model (depicts system and subsystems, and which causes
issues in others)
SWOT Analysis (looking at strengths, weaknesses, opportunities and
threats)

Looking at Strength's, Weaknesses, Opportunities and Threats (SWOT)

Organizational Diagnostic Models


Once you've conducted assessments of your organization, whether explicitly or
implicitly, it helps to have some basis by which to analyze the results. Diagnostic models
can provide that basis. There are differing opinions about diagnostic models. Some
people suggest that these models should come without bias or suggested solutions, and
should be used to accomplish an objective, unfolding understanding of organizations.
Others believe that models should suggest:
1. What types of practices should be occurring in the organization.
2. The order in which those practices should be occurring.
3. Standards of performance for various domains, such as individual positions, teams,
projects, processes, functions, programs and the organization.
Thus, a diagnostic model can be useful in an organizational change effort to:
1. Analyze results of data collection.
2. Identify issues that should be addressed by the organizational change effort.
3. Suggest what actions should be taken to address the issues.
4. Evaluate the success of the organizational change effort.
There are numerous organizational diagnostic models available, depending on one's
beliefs on what the roles of the models should be. Below are two examples. (NOTE:
Many of the systems mentioned later on below can be used as diagnostic tools.)
A Diagnostic Model for For-Profit Organizations
A Diagnostic Model for Nonprofit Organizations

Maximum Performance -- Different Things to Different People


Methods of Strategic / Organizational Analysis

Setting performance objectives per employee is an important part of task management


which allows to achieve Strategic Goal by dividing it into a number of sub-goals. The
team leader or manager must do some steps to set individual performance objectives:

• Appoint and conduct meeting with each employee to describe his/her job and
tasks
• Create and address a list of responsibilities to the employee
• Develop adequate individual performance objectives according to the employee's
major functions and responsibilities
The individual performance objectives must be based on information that is collected for
management purposes and during the planning process.

VIP Task Manager is task management software which helps to set individual
performance objectives and evaluate task performance per employee. With VIP Task
Manager you can maintain appraisal activity and you develop performance objectives
that are achievable, flexible, timely and rewarded. VIP Task Manager helps describe the
desired results, provides direction and purpose, and defines measure and standard for
performance. All these deliver improved performance.

Action plan:

• Start VIP Task Manager


• Create a task, use 'Notes' and 'Comments' tab to word individual performance goal
• Assign the task to an employee
• If needed, attach documentation to the task
• Set deadlines by using due date, start/finish dates, estimated and actual time
• Press Ok to save all changes

Note: use Custom field feature to specify qualitative and descriptive part of the individual
performance objectives.

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