What is Key Performance Management?
Performance Management is what organisations do to become more
successful and stay ahead of their competitors. In fact, managing
performance is THE most critical task of any manager or
If organisations get it right, their performance management
processes help them to better execute their strategy by measuring,
reporting and managing progress. The aim of performance management
is improve the performance of organisations and
We tend to split performance management into corporate and
people performance management.
Corporate Performance Management
Corporate Performance Management (CPM) focuses on the
performance of the entire organization and is also referred to as
Enterprise Performance Management (EPM) or Strategic Performance
CPM can basically be defined as a set of management processes
that help organisations define and execute their strategy, and to
measure and monitor performance in order to inform strategic
decision making and learning.
CPM is therefore an umbrella term that encompasses processes for
defining strategic objectives, measuring performance, analysing
performance, reporting and reviewing performance as well as
aligning people and culture. All of these are focused on strategic
performance improvement, which is the central premise of
Tools used for CPM include management dashboards, Balanced
Scorecards, key performance indicators, analytics, planning,
budgeting and forecasting, benchmarking, business excellence
models, six sigma, enterprise risk management, project or programme
management, and performance reporting.
People Performance Management
People Performance Management focuses on the management of the
people in an organisation to ensure that their performance
contributes to the strategic goals of the organisation. It is about
aligning the performance of employees with the improvement of
People Performance Management is an umbrella term that
encompasses processes for communicating corporate goals and
priorities, aligning individual goals with corporate goals,
agreeing performance measures and targets, helping individuals
understand how well they are performing as well as developing the
skills and competencies required to improve results.
Tools often used to manage people performance include
appraisals, reward and recognition systems, personal development
plans, performance targets, and performance review
Performance Management Systems
Both corporate and people performance management processes are
often supported by information technology. Performance Management
Software Applications help organisations manage and automate the
The right performance management processes are often the key
differentiators between top performing organisations and those that
would like to become one.
To learn more about performance management read our books, articles and case
studies or get in touch if you would like to discuss our
performance management consulting or training services.