When thinking of 'performance management', it's only common to assume 'employee performance management' automatically.
However, corporate performance management relates to a broader set of activities to ensure the company achieves its goals. Employee performance management is only a part of this umbrella. So, you need efficient operational and employee management systems to ensure your company doesn't fall under the 1 in 5 U.S. companies that fail within its first year of operation.
Corporate performance management, hence, is a comprehensive concept. It asks all company teams to be in sync with one another. The article is about knowing how. Let's get to it without any delay.
1. Prioritize and pick three primary goals
As cliche as it may sound, prioritizing your company goals is the most critical step.
Without goals, what do you measure your results against? Setting goals is hence the most important step in achieving organic business growth.
Yes, all businesses want to ‘succeed’. However, only a few do. The single most important reason behind this is clarity. Take up any top organization within your industry and study it. Go through their marketing strategies, the hiring process, and the people working for them, and you’ll find they have a well-defined plan for all segments of the company, not just one.
Listing goals could be as simple as wanting more organic traffic. However, narrow it down to the exact number. For example, you own an online retail store. About 1K users visit your website monthly, and your goal is to make it 2x. The questions you should be asking are:
What are the ways to achieve this number?
In how much time do you want to accomplish this goal?
Do you have the resources (internal or external) to help you attain this goal? (if not, find ‘em!)
For how long should you sustain this goal to move to take it a step further?
What budget are you willing to allocate?
Answering these questions will take you closer to achieving your goal as you’d already be clear on the goal. Write down all the primary goals with as much detailing as possible (including start date and end dates, too, if you want), and then break them down into smaller, more attainable goals.
Pick the three most important or urgent ones you must achieve from the list. (know the reason for doing so). Chalk out action plans for each and discuss them with the designated parties before implementing.
2. Use corporate performance management software
It’s not uncommon for resourceful companies to suffer despite having a talented pool of employees. While the reasons could be plenty, improper or mismanagement in internal or operational teams is a primary reason.
Managing a business is, at large, managing money. So, mismanagement in finance-related operations makes for bad financial decisions, adversely affecting the overall corporate performance.
Hence, corporate performance management software is something your company needs, not wants. With the right corporate performance management software in place, finance professionals can access data with ease, make pivotal business decisions in a fraction of the time and spend less time budgeting and more time building strategic plans.
Some of the major benefits of using CPM tools are as below:
Such management software is for companies wanting to take growth to the next level but with a proper management system.
3. Leverage global mobility software
The above two points will benefit small to medium-scale companies, while this one is for the big shots.
While the pandemic came with an opportunity to work from home, there are specific industries that don't benefit from such a work model. Global mobility software is for such companies. If your business deals with one or more of the below, contacting global mobility providers should be on your priority list if you want your company to thrive in the long run.
- Frequent employee relocation or transportation
- Transferring employees or entire departments to a different location
- Permanent change of station or regular employee transfers
- Facing issues with monitoring employee performance across locations
Global mobility software centralizes employee data, making it easy for companies to track roles and assignments across varying locations. Moreover, it helps with location-specific legal compliance. For example, the software will help navigate the city's employment laws and tax regulations if you want to send an employee to New York, USA. It even allows employees to send and receive requests and receive support.
Decision-makers get the entire picture of the companies across different locations, making mobility budgets and other strategic decision-making simpler. Leveraging this software is perfect for an already well-established company or companies aiming big.
4. Incentivise good performances
Employee satisfaction and company growth work together like SEO and content marketing. Boosting one without the other is impossible.
One of the most effective ways to boost employee morale is to give them a reason to do so. Reward the hard work of the employees by incentivizing them. However, consider their preferences before doing so.
For instance, if your company follows a ritual of rewarding employees with awards like ‘Employee of the year’ or ‘The Rising star award’, etc., it’s time to revamp things a little. Not all employees like to be incentivized by receiving awards. Some may prefer extra paid time off or a trip, while verbal appreciation is enough for some.
While rewarding top employees is one side of the coin, pushing employees to do better is another. How do employees improve if they don’t know what they’re doing wrong? Here’s when it could be tricky since you want to convey criticism as compassionately and constructively as possible.
Consider the following pointers when developing a plan to offer effective feedback to employees.
- Know the personality of the employee
- Know the mode of communication the employee prefers.
- Take up meetings and discussions with curiosity rather than judgements.
You’ll be surprised to know that 22% of employees call in sick rather than face a performance review. The end goal is to have a fruitful outcome of the conversation with the employee, leaving them feeling empowered rather than burdened. Ensure your employees are in the remaining 78%.
5. Hire candidates who are a great cultural fit
Truth be told. A culturally fit candidate will likely stay with your company long term.
Yes, talent and skill are necessary. However, hiring a candidate who’s also culturally fit is more important in the long run. The reason is simple. Exceptionally talented candidates also have more employment opportunities, so they're rather quick to switch employers when they come across better opportunities.
While candidates that fit right with your workplace culture won't abruptly leave your organization, thereby reducing the number of resignations and increasing the employee retention rate. The ideal solution is to hire a talented pool that is also aligned with your company's goals and vision.
The below pointers will help you fish out such candidates from the mass.
While keeping the above mentioned pointers is important, don't forget that hiring is a two-way street. Your organization needs to have a compelling Employee Value Proposition (EVP) that attracts top talent in the industry. Then develop the employee with all the resources at your disposal.
Take your company to a newer height with these comprehensive practices
The article enlists five ways to maximize corporate performance. While you can take inspiration from these tips and implement a few strategies that serve your business, remember there's no one-size-fits-all. Mindlessly enforcing new practices to boost your company's performance won't yield the desired results.
Finding out the existing roadblocks to attaining your goals before making decisions is key. The reasons could either be related to employees or clients. Take feedback from both regularly and identify factors that aren't serving your business growth. Once done, include stakeholders and designated employees to develop action plans.
Maximizing corporate performance is not a single-shot thing. It’s a process, so be as patient and experimental as you can!