Clearly, a more effective mechanism, and this goes back to some of the things we were talking about before, is in terms of aligning corporate performance management with rewards. This involves the alignment discussions about managing change but also linking corporate performance management with rewards, incentives, and celebrations.
I believe this is a far more effective mechanism. It’s certainly better than simply focusing on the negative side of the equation. It aligns individual goals with team goals, organizational goals, and the incentive programs that support them. What we would like to do is go beyond that and identify something that we would see as in line with a self-actualizing organization.
What I mean by this is that performance and all of the incentive systems aren’t external to the system, but they’re built into the system. They’re the things that motivate people. The things that motivate the organization; the rewards and the process mechanisms that sustain that performance are all part of the same organic institutions. They keep the organization healthy and the organization, by those internal processes, actualizes its improved performance delivering sustainable, improved goals over time.
So what does this involve? This involves having real performance management, providing insight and guidance rather than simply hammering people down in terms of what they’re not doing right. It also involves empowering and motivating those people in terms of aligning their incentives, incentives of the organization, and their teams with long-term strategic drivers of the organization. Most importantly, it won’t be limited to scorecards, dashboarding, and alerting.
We run into a lot of problems that you find in a lot of situations where many organizations equate corporate performance management with a small set of tools. Often times, their system tools that are provided by vendors allow them focus on one part of the overall process, which is easy to automate and looks great because they can color code things red, yellow, green, and blue. It’s important to note that no scorecards, dashboards, and alerts are the only important tools of the entire process.