Many organisations have attempted to implement Performance Management processes as they know that the potential to increase the organisations overall performance is significant. Successful case studies talk about improvements of overall organisation performance between 2% to 25% annually.
So what are the critical factors for success in implementation? This White Paper outlines some of the critical factors for successful implementation.
One of the most critical factors in successful implementation and adoption is C-level support. If your C Level executives are not supportive, then no matter how well you implement the process, it will suffer from low compliance and acceptance. Managers and employees will say “why should I bother if John (CEO) thinks it’s a waste of time”.
The question then becomes - how do I get C-level support?
We would suggest the following approaches to gaining C-Level support.
Our existing methods for managing Human Capital have been developed in the industrial age as have our financial measurement systems. Balance sheets contain assets and liabilities, Profit and Loss Statements talk about Income, Expenses and Net Profit. Where are the ratios that talk about return on investment per employee? Where are the numbers that spell out trends in Human Capital management when this investment typically represents 60% of the organisations costs? In the present information age, management of Human Capital is more important than return on Assets deployed. Organisations have less assets (they lease them), less inventory (due to Just in time manufacturing), better debtor controls (due to accounting systems). So is the old method of managing an organisation (asset management) still the most accurate method? Probably not.
The value of Human Capital directly relates to...
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