Performance Management Systems: Catalysts for Continuous Improvement I

Performance Management Systems: Catalysts for Continuous Improvement I

Today, we commence a 5-part series on one of our highly recommended strategies for driving a culture of peak performance – The Evolution of Performance and Impact Measurement.

Performance and impact measurement is evolving, focusing on the tangible results of leadership activities. Implementing ROI Metrics for Leadership Programs will enable us ensure that the investment in our growth yields quantifiable benefits. By doing so, we link the development of leadership competencies directly with organizational success markers.

It is said that anything that isn’t measurable cannot be progressive. In your business, qualitative metrics is just as important as quantitative metrics because values have to be assigned to everything so that there can be a determination of success or otherwise. This is why concepts such as fixed cost, average cost, marginal cost, marginal product, marginal profits, average revenue et al have notoriety in economics. The same thinking that applies to material resources also applies to human resources. Therefore, a performance management system is a way of tracking or measuring the performance of employees in an organization. Such systems are driven by processes, tools, technology and standardized methods that are designed to ensure that every activity is aligned with an organization’s vision.

Performance management systems amongst other things, define job roles, job expectations, timelines for deliverables, appraisal metrics, feedback mechanisms etc. This is a system that is engineered to spur innovation, productivity and profitability – it’s a framework for harnessing the factors of production. Organizations who look to optimize both human and material resources pay a lot of attention to the analytics that are derived from activities. From the empirical data, a lot of inferences can be made which can help management intelligently navigate the ever competitive nature of the corporate environment. These are some reasons why forward-thinking organizations should double down on using performance management systems.

A. Increased Workforce Productivity

This is one of the foremost reasons for effecting a performance management system. Human beings are very interesting, some would ordinarily want to get away with doing the least at the workplace in the absence of a system that tracks their activities on the job. Also, for the employers or management, it would be very difficult to decide on a reward without a significantly objective measure that shows the amount of result or outcome that an employee have achieved relative to the resources allocated. A performance management system objectively incentivizes contribution and reduces the incidences of mediocrity and nepotism.

With an effective performance management system resources can be reallocated or reassigned to persons, departments or subsidiaries that are churning out a high level of productivity. For example, if a manager sees that an a team member produces twenty-one chairs per week in contrast to another team member that produces twelve chairs during the same time, the manager knows not only to reward the former for the hard work but also to allocate more resources and tools for him or her to work with.

B. Clearly Defined Career Paths

A performance management system can predict the career trajectory of individual team members within an organization. It is largely self-instructive because people know what to do to get where they aspire to be. Such that success is not happenstance, the actions and inactions of an employee can predictably place them on certain pedestals because there is a well-documented consensus on the touchpoints that are rewarded. Uncertainty is fostered when there is no model to mirror. With clarity provided by an effective performance management system, many employees can decide to focus on a specific aspect of their job a little more than others because they have a professional endgame in mind. They have seen how those before them have towed a particular path and they have done same because there is a performance management system that all but guarantees that they will get similar results.

Adaora Umeoji will replace Ebenezer Onyeagwu as Group Managing Director/Chief Executive Officer of Zenith Bank Nigeria after the latter’s five-year tenure ends on May 31st 2024. What many people didn’t know is that in the over thirty years Adaora had spent in the banking sector, twenty-six years of that had been with Zenith Bank. Everything from her studying at Harvard Business School, Columbia Business School, and her degrees in Sociology, Business Administration and Law amongst other things like her current role as Deputy Managing Director prepared her for their imminent leadership role. Employees can easily give their best when they can envision a roadmap for their professional future.


To further position your leaders for peak performance, you can download a free copy of the latest edition of The Peak Performer Magazine You can also enrol your Mid-level  Leadership Team for the Made4More Accelerator Program and your Senior Leadership Team for the Dr. Abiola Salami International Leadership Bootcamp MOMBASA 2024 We also have an upcoming training for leaders in public service

About Dr. Abiola Salami

Dr. Abiola Salami is the Convener of Dr Abiola Salami International Leadership Bootcamp and The Peak PerformerTM. He is the Principal Performance Strategist at CHAMP – a full scale professional services firm trusted by high performing business leaders for providing Executive Coaching, Workforce Development & Advisory Services to improve performance. You can reach his team on and connect with him @abiolachamp on all social media platforms. 

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