Performance Management

What Is Performance Management Program?

Performance Management Posted On
Posted By Comffyuipliance

Management that aims to make the organization’s objectives and goals efficient and effective is called performance management.The performance management process in companies has been evolving in recent years. And the reason is simple: it provides competitive advantages in the market.

Prior to the advent of spreadsheets, it was sufficient to create spreadsheets incorporating the goals and objectives of an organization so that, after some time, the overall performance of a work unit could be assessed.However, in times of high competitiveness and innovation , the constant search for a firm position in the market made companies realize that this way of working is neither sufficient nor effective.

In view of this, companies need to define, in addition to  their business plans:

  • the expectations of its customers;
  • the skills;
  • the values;
  • the organization’s culture;
  • the differentials of its products and services.

This whole scenario must be included in a performance management program, making the evaluation process more complex. However, it is entirely possible to be successfully deployed.

Check below a step-by-step guide for you to be successful in implementing a performance management system in your company.

5 Steps To Implement A Performance Management Program

An important step is to define performance objectives. But before we go any further, a question: do you know what performance management is?

What Is Performance Management Anyway?

Performance management can be defined as a process composed of a set of actions that aim to ensure that the company obtains better results in its performance. For this, we seek to establish a shared understanding of the results to be achieved and the role of each of those involved in this process.

It also refers to performance management, monitoring the strategies adopted, the development of skills and learning and constant improvement.

Now that you have understood what performance management is, let’s go step-by-step to creating a performance management program.

1 – Manage Rationally

The leaders of organizations must always seek to manage the company in a rational way. That is: efficiently and with the utmost attention to the quality and effectiveness of their own work.

This may seem obvious, but leaders with this skill are increasingly rare. Without them, there is no way to develop a performance management program.

2 – Theory Of Change (ToC)

It is advisable that the company develops its Theory of Change (ToC) – a concept that refers to the planning that the company has to have to create and maintain a good offer of services that are socially valuable.

The ToC Must Contain:

  • the area in which the organization operates;
  • the goals the company is working to achieve;
  • the indicators that will be used to assess these results;
  • the program or services it will provide to achieve its outcome objectives;
  • the skills and abilities are necessary to do so.

The ToC is much more than a business plan. It actually represents a  look at the organization as a whole.  The company needs to know about your capabilities and development needs. As a result, you will be able to list the available resources so that you can create your goods and deliver your services reliably, with a high level of quality, thinking about the long term.

In other words: develop organizational performance management.

3 – Develop Metrics

Using the  ToC  as a framework, the company will be able to develop the key metrics that it will use in its organizational performance management program.This method also allows the company to have a quicker look at its most urgent needs and therefore make adjustments.

To reach this level, it is necessary to involve all people in the organization, at all levels.

The goal is to get to a point where employees themselves understand:

  • the results;
  • service quality indicators;
  • performance goals.

Thus, they will be prepared to work in order to drive their own performance, as well as that of the organization as a whole.

4 – Performance Management Data System

The company must implement a performance management data system that works in real time. It must be easy to use and accessible to all employees. In this way, it will be possible to achieve the highest possible degree of success.

5 – Use Data Wisely

It is suggested that the organization uses performance data to learn how deeply it understands its own work. In this way, it will  align the expectations of leaders with those of employees.

Learning from experience and making adjustments based on the data indicated and seeking to reinvigorate in all employees the commitment to work tirelessly, passionately and productively to fulfill their mission.

How Can A Performance Management Program Help?

A good performance management system can help you be more successful in this task. With this type of specialized technological solution, it is possible to better manage data and information about the performance of employees, encourage learning and make strategic decisions more assertively.

Here’s what a performance management program can do for your company:

Indicator Tree

The performance management system gives you access to a tree of indicators. This way, you can visualize the goals in a hierarchical way.

Management Module

The management module is another way that a performance management program has to make it easier for employees to visualize their goals (monthly and cumulative).

decentralized Update

The updating of results is done in a decentralized manner, no longer focusing only on the manager’s hand.

Ease Of Exporting Spreadsheets

With a system specialized in performance management, it is easier to export spreadsheets, which also facilitates the analysis of important data on the performance of employees and the company in general.

Improved Internal Communication

This type of software helps to promote more efficient internal communication, also helping to disseminate good practices among employees.

Well, is it clear how a performance management program can help your company?

Well, if you want some more practical tips, check out these!

5 Practical Tips On How To Implement Performance Management

To implement good performance management, there are some good practices considered indispensable. Check out what they are in the next lines.

1 – Promote The Alignment Of Expectations With Employees

A really effective performance management depends a lot on the alignment of expectations that is made between those who occupy a leadership position and the other employees.

It is extremely important that everyone clearly knows what their roles are. When employees are not sure what is expected of them, they will hardly achieve the performance that you, the manager, want.

2 – Set Goals To Be Achieved

Performance management also involves clearly defining the objectives that teams must achieve.At this point, try to involve employees. This favors their engagement with the proposed results.

Also seek to establish challenging goals (neither too easy nor too difficult), which can be easily measured and which are aligned with the strategic and long-term objectives of the company.

3 – Define Performance Indicators To Follow Up

It is also important to define which performance indicators will be used to monitor the evolution of individual and collective efforts towards previously established goals and objectives.

The analysis of indicators can be facilitated through a performance management program. We’ll talk about that later on.

4 – Provide Constant Feedback

Feedback is an essential practice when it comes to performance management. Employees need to know where they are getting right and what aspects they need to adjust and improve.

In addition to feedback, the leader must also be willing to clarify any doubts that employees may have. Thus, everyone will feel more secure in carrying out their tasks.

5 – Invest In Training And Capacity Building

Finally, there is no way to implement performance management if your company does not invest in training and capacity building. Promote courses and lectures for employees to learn about new techniques and best practices. Thus, the knowledge acquired will be reflected in individual and collective results.


After knowing all this, it is necessary to emphasize that the performance management system implementation process does not happen overnight. Chances are, the organization will find it very difficult to get started. However, it is necessary to take the first step and once the path begins to be traveled, the company will never be the same.

Some leaders who implemented the performance management process revealed that it took, on average, three to six years to implement this whole concept. But the benefits brought to the company were worth every effort.

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