www.bradford.ac.uk/management

Implementing a Performance

Management System

Change Management and

Performance Management

Performance Continuum

2

•

Misalignment between effort and expected results

•

Poor quality of management reporting - tons of data, negligible information

•

Slow response, information flow

•

Management dissatisfaction

•

Staff dissatisfaction

•

Further customer disenchantment

Emerging Issues



Inflexible, out of date legacy systems



High system / process operating costs



Demand driven need for faster response, rapid product

evolution



Drive for growth



Need for multi site knowledge integration, due to growth,

acquisition, globalisation

Today

Performance

World

Class

Baseline

•

Refined control systems

•

Process orientated
rewards & recognition

•

Further integration to
customers / suppliers,
extended enterprise

•

Focused process
management/leadership
style

•

Process ownership

•

Establishment of new
performance measures for
operations and systems

•

User skill development

•

Alignment of strategic
demands, operational needs
and system functionality

•

Better response times

•

Faster decision making

Stage 2 Performance enhancement

Stage 1 Optimisation

Decision

Implementation

Continuous Development

Expected

Delivered

People

Go Live

Process

System

Capability

3

Knowledge

Behaviour

Feelings

Capability

4

Change Management and

Performance Management

Change Management is the planning, initiating and
managing of changes to processes, behaviours and
attitudes in an organisation.

When implementing a Performance Management system across an
organisation, it is often forgotten that a complex web of conditions and
emotions must be accomodated:

Ability to

Change

Personal

Cost

Need for

Change

Willingness

to Change

Financial

Cost

+

+

+

>

5

When does Change Management

Come into play?

Triangle

of

balance

The business need

Definition

Timescale

Cost

Performance

management

requires……

…capability

which permits…

….benefit to be

delivered

6

Organisational Change Axes

The implementation will tend towards one or other of the axes unless executive and

management have clear and shared objectives, and are fully committed to rigorous

performance management.

Efficiency

Culture change

“the long march”

…..behaviours/attitudes

££s

only

What information do

we need to manage

the business?

What do we need

to do to our

systems to deliver

this information?

How do we adjust

our processes to

avoid GIGO?

Let’s deliver the

changes...

... but pilot

them first

A classic three-step approach

Data massaged

into a common

format

New

“Data

Warehouse”

Operational systems with

enhancements

Operational &

Financial

data

Direct feeds

What needs to happen

New EIS

What needs to happen

– Get consensus. It takes time, but the process of

getting consensus is actually valuable

– Reality test the measures as early as possible: what

is the cost/benefit?

– Think ahead and build for flexibility
– Communicate, communicate… and communicate
– Get all necessary contributors on board as early as

possible

– At times, someone has to just drive things through –

get a good sponsor!

10

The Characteristics of Change

Kübler-Ross Change Curve

Shock

Valley of

despair

Denial

Awareness

Acceptance

Integration

Experimentation

Search

The Emotional Cycle of Change

Pe

rc

eiv

ed

Compete

nce

Time

11

Bringing it all together

Stage

1

Stage

2

Stage

3

Stage

4

Recognition of need to change

Competitive Arena

Change Definition:

Mission and Goals

Choice of strategy

and tactics

Implementation

and evaluation

Operational Efficiency

Market Effectiveness

Top Managers

Senior Managers

Managers and

supervisors

Supervisors and

workers