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Critical Aspects of a Performance Management System:
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Performance Management
Strategic Considerations
After an initial review of the organization’s current
practices, and after discussions with key staff personnel, it
is very beneficial to take a long term or strategic look at
some issues that could have a strategic impact. I started by
considering how the organization compares in relationship to
the concept of Performance Mastery™, which is defined as “The
discipline of consistently anticipating the future, achieving
and maintaining organizational excellence, increasing
stakeholder value, and attracting and retaining a committed
workforce.” This practice of excellence is very applicable to
all organizations especially in this time of accelerated
change, global competition, and the absolute necessity of
being highly efficient and ensuring maximum possible return to
all stakeholders.
The process of achieving organizational mastery begins with
accurately and consistently anticipating the future by
developing comprehensive strategic and operational plans that
will help ensure long-term success. This area is not directly
being addressed by this project.
The second step is achieving and maintaining organizational
excellence. This area includes internal customer-supplier
efficiency, organizational structure, effective policies and
procedures, manpower utilization, information delivery, and
external customer satisfaction. Each of these areas would
incorporate appropriate measurement systems to baseline
current capabilities and ensure maximum impact and return on
invested dollars. With an increasing global economy and
increasing demand for excellence by consumer groups, all
organizations that do not consistently strive to be the best
will face difficult times. This means that serious
consideration should be given to developing comprehensive
strategic and operational plans with their appropriate
strategic goals, strategies, and action steps. These plans, at
a minimum, should look at ways to consistently improve overall
operational efficiency, address current human resource
utilization, future manpower requirements, and planning to
ensure having the right people with the appropriate
competencies both now and in the future.
The third step is increasing stakeholder value. To be
successful in the accomplishment of this area is to ensure
that all stakeholders are considered when reviewing ways to
improve the organization. Although there is no direct
correlation to a comprehensive performance management system,
there are many indirect correlations including employee and
customer satisfaction, as well as improved productivity.
The fourth, and in my opinion the most critical step is the
attraction and retention of a committed workforce. The United
States Department of Labor is projecting some troubling
forecasts as it relates to the ability to attract qualified
workers starting in 2005.
One of the primary purposes of a comprehensive performance
management system is to attract and retain a committed
workforce that will assist Constructors to become the best
possible organization.

Basic
Philosophy
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