Executive Summary

Page 1 of 3 Download Executive Summary (.PDF) 145KB Watch the Executive Summary Video Executing Strategy Business performance starts with a clear, consistent strategy. But, unless that strategy is communicated throughout an organization from the CEO down to the third-shift production worker, there is little chance of that strategy succeeding. Performance management is the tool that enables that communication. A well-executed performance management process holds individuals accountable for their contributions to attaining goals set out in a strategic plan, and encourages everyone to feel responsible for the organization's success. To gather insights into this key corporate initiative, Corporate University Xchange (CUX) launched a multi-phase study to determine what comprises a successful performance management process. The study began with a survey answered by more than 150 organizations with an average of 24,000 employees. In addition, qualitative interviews were conducted with 15 organizations to better understand how performance management is being implemented, measured, and improved. The interviews were conducted with both large, global organizations like John Deere, Caterpillar, Pfizer and UBS, and smaller organizations like the Florida Department of Revenue. When asked whether learning management or performance management was more crucial to the achievement of corporate goals, 78 percent of those surveyed chose performance management. Although that result could have been biased by the fact that study participants were involved in performance management, interviews with CLOs with responsibility for both learning management and performance management attested to the result. Performance management is not a new organization process, and most companies (85 percent) have a performance management initiative in place. Of those, 23 percent have had their processes in place for more than 10 years, with another 24 percent saying that their initiatives were 5-10 years old. Over half of the companies, however, have had their performance management processes in place less than that the process is effective. Performance management is becoming a must-have for companies that want to create competitive advantage through employee performance. Of the 15 percent of organizations that have not yet implemented PM, over half are launching new initiatives this year and 76 percent within three years. Although performance management needs to start at the top of the organization, with 58 percent of survey respondents saying that the CEO is responsible for creating a common vision, the largest number of respondents believe that a successful initiative requires the participation and follow-through of the entire organization. << Start < Prev 1 2 3 Next > End >>