Performance Management - Fundamental to Business Success

At the root of a high-performance culture, there will often be a well-communicated business strategy and the organisational capabilities to fully execute the strategy. There will also be performance measures that will explain just how effective this strategy is in meeting business goals. These measures (or their elements) filter through all sections of the organisation to find their place in the individual performance plans of employees. These performance plans are an integral part of the organisation's reward and recognition programs.

This future-focussed performance management framework is essential to many core Human Resources programs - not just employee recognition and financial rewards. Once the right strategic measures are defined, you can clearly explain what you expect from your employees and establish what you can do to help them deliver great results, as illustrated here:

HR PROGRAMS •How will you set & communicate performance objectives? •How will you assess, then recognise & reward the contribution of your employees? •How will you organise your workforce? •How will you select the best people? •How will you provide for their development needs? PEOPLE STRATEGY •What people capabilities will you require? •What performance measures will explain their contribution? •What will your high performance culture look like? •Who are your key people - how will you retain them? •How will you develop & reward future leaders?

		BUSINESS STRATEGY
	•What do you want your future organisation to look like? •What are your critical business drivers? •What are the risks facing your business? •How will you retain and grow customer loyalty? •How will you achieve shareholder expectations?
		•What measures will tell if you are successful?

From a performance management perspective, the ultimate goal is to create a workplace environment that is filled with cultural reinforcers and is stimulated by tailored reward & recognition
programs, all focussed on the employee behaviour necessary to achieve successful outcomes.

Reward strategy & programs - alignment is critical

In creating a high performance workplace, your reward strategy and remuneration practices will be vital. Market leaders avoid off-the-shelf remuneration programs - they develop innovative ways to encourage the employee behaviour that will make a difference in achieving their particular business goals. These organisations go well beyond benchmarking their remuneration & benefits practices - their reward & recognition programs tend to be:

1. Contingent on employees making a contribution, rather than just doing certain tasks;
2. Meaningful and valuable to the individual;
3. Based on objective and attainable goals;
4. Fair to all, and not based on a competitive struggle within the workplace;
5. Balanced between workplace conditions and fulfilment of individual needs and priorities;
6. Focused on efforts to serve customers and to enhance collaboration within the workplace.

Your reward strategy should be tailored to support the distinctive needs of your business; consequently, your reward & recognition programs should be Specific, Measurable, Achievable, Realistic and Timely (SMART).

HaRe Group's research also shows that good remuneration management will help sustain a competitive advantage in most industries - but which remuneration programs will work best for your business?

For more information about enhancing your organisation's performance through
the development of performance and reward strategies and programs, please contact
Simon Hare on (03) 9521 9132, or at   .

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