• Dec 05, 2014
• Comments Off on Performance Measurement or Performance Management?
• cathlavery

Performance Measurement or Performance Management?

Many people use the phrases ‘Performance Measurement’ and ‘Performance Management’ almost interchangeably when, in fact, they mean different things.  However you can be forgiven for mixing them up, they are very much related! Performance Management encompasses and works hand-in-hand with Performance Measurement.

Stacey Barr, creator of the PuMP® framework, recently wrote about this report by Robert D. Behn and his differentiation of performance management and performance measurement.

Robert D. Behn is a lecturer at Harvard University’s John F. Kennedy School of Government. In his report on ‘What Performance Management Is and Is Not‘, he lays out eight points to clarify what “performance management” is and what it is not:

1. “Performance management” requires that members of the leadership team of a jurisdiction, agency or collaborative, to focus their efforts on achieving a specific public purpose.

Whatever their purpose is, the managers have to make it clear to their staff, to their stakeholders, collaborators, and (if appropriate) clients. In Stacey’s words, this means “dropping the assumption that broad and vague goals are necessary”. They’re not, and they won’t achieve anything.

2. “Performance management” requires the leadership team to focus everyone on the task of eliminating or mitigating one of the important performance deficits that is preventing them from achieving this purpose.

It’s not a new idea, but it’s one we forget in the busy day-to-day running of our businesses. The more focused you are, the more you will achieve, and the bigger improvements you will make.

3. “Performance management” requires the leadership team to define a performance target – a specific result to be produced by a specific date that, when achieved, will eliminate (or at least mitigate) this key performance deficit.

When a whole team works together towards a well-designed target that they understand, great things can happen. But remember, you must first come up with a sensible measure before you can set a sensible target!

4. “Performance management” requires the leadership team to develop a performance strategy that will engage employees, collaborators, and citizens in helping to achieve this target.

Engagement is key to this point, but also the teamwork and collaboration. The goals of an organisation don’t rest on a single person’s shoulders.

5. “Performance management” requires the leadership team to track, regularly and frequently, data that reveal its progress toward achieving this target.

There is no one-size-fits-all when it comes to how often measures should be tracked, as Stacey puts it; “Performance measures should be monitored as frequently as makes sense”. However, the more frequently you monitor them, the faster you get feedback and the more quickly you can spot signals.

6. “Performance management” requires the leadership team and staff to analyse this data to determine how much progress they are making towards achieving their target.

Obviously you need to analyse the data to see how well the organisation is progressing towards the goals, but how you measure it is key. Natural variance needs to be taken into account. Stacey suggests using XmR charts to more accurately measure how far actual performance is from targeted performance.

7. “Performance management” requires the leadership team to learn from this data – use its analysis of its data to make adjustments (or drastic revisions) to their strategy.

This is key. Time should be spent on finding solutions to problems and shortfalls that come out in analysis. It should not be spent on assigning blame, or ‘fighting fires’ by treating the symptoms of the bigger underlying problems.

8. “Performance management” requires the leadership team – after it has achieved its target – to select another performance deficit and create another target plus another strategy for achieving this new target.

Continuous improvement is key to a successful Performance Management strategy.

Do any of these shortfalls seem familiar? Do you or your organisation need help or advice on any of the finer points of strategic planning or Performance Management? Why not get in touch to see if I can help?

You can read Robert D. Behn’s full report, and any of his earlier ones, for free here.