The Business Case for Corporate Performance Management

The Business Case for Corporate Performance Management

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  The Mandate forPerformance Today’s Performance Mandate is based on: I. The need for performance documentation due to regulatory requirements, to support employee reviews and/or compensation decisions, and for talent staffing and management. II. The need to engage employees to improve productivity, performance, and alignment with corporate objectives. III. Consumerism. Employees want access to information. Employees want the same tools and functionality at work that they have access to at home. This means technology must be easy to try, buy, use technology. The Business Case for Engaging the Workforce A comprehensive review by the Department of Labor of more than 100 studies that examined the link between progressive people practices and improved bottom line results concluded that there is a positive relationship between training, motivating, and engaged employees and improvements in productivity, employee satisfaction and financial performance.  Highly engaged employee companies enjoy 26% higher employee productivity, lower turnover, higher talent attraction, and greater shareholder return10.  Talent management practices power engaged companies to achieve higher profit per employee by nearly 40%11. Common Characteristics of High Performance Workforces  Clear goals and plans (connection between daily people performance and financial objectives).  Established communication among members (healthy dialogues).  Develop and maintain positive relationships among members (sense of community).  Solve problems and make decisions on a timely basis (culture of accountability and customer-orientation).  Successfully manage conflict.  Facilitate productive meetings (Time, resources and results sensitive).  Clarify roles for team members.  Operate in a productive manner.  Exhibit effective team leadership.  Provide development opportunities for team members.  Aligned (unified) commitment of vision, mission, and values. 10 see findings in Watson Wyatt’s 2008/2009 WorkUSA Report. 11 as explained in “Why Multinationals Struggle to Manage Talent” from McKinsey. Ephor Group | 1-(800) 379-9330 | www.ephorgroup.com | 24 E. Greenway Plaza Suite 440 | Houston, TX 77046