Bottom line, performance management helps organizations achieve their strategic goals. Boards and shareholders have turned to HR leaders to develop and execute performance initiatives that produce measurable business results from their investment in talent. Performance management transforms business strategy into an actionable plan with aligned day-to-day tasks that are communicated organization-wide. As a management tool, it assigns ownership to key metrics and increases accountability to ensure talent is focused on tasks essential to strategy and that results achieved by talent are consistently met in an effective and efficient manner.
Performance management and related metrics are common ground for operations, human resources, finance, leadership and individual contributors, providing ongoing feedback to show what needs to be improved. Leadership can assign economic value to the intellectual capital created and applied in their workforce. Individuals are encouraged to sustain and new changes in behavior consistent with organizational goals. For human capital leaders, performance management is their system to improve supportive talent management processes, such as talent performance reviews and pay-for-performance compensation. In this Talent Topic we look at strategic applications of performance management from the perspective of each stakeholder group.
