Performance Maturity

How good is your performance management capability? How do you know?

Recognizing a need to better understand and standardize Performance Management, CAM-I recently published their research as an Emerging Issues Paper, titled The Performance Management Maturity Framework.

The Framework establishes a reference and starting point for organizations interested in improving their performance. The framework has three distinct elements:

  1. Identifies twelve enablers that all organizations use to deliver successful results. These enablers cover the following areas of management: Business/Operations, Customer Relationship, Financial, Human Capital, Information, Innovation, Knowledge, Organizational, Process, Risk, Strategy, and Supply Chain.
  2. Defines, for the Enablers, four levels of Performance Management maturity: Rudimentary, Established, Effective, and Adaptive.
  3. Identifies nine categories of improvement techniques to improve the maturity of specific enablers: Activity Based Management, Balanced Scorecard, Benchmarking, Business Intelligence, Business Process Re-Engineering, Capacity Management, Lean/Six Sigma, Target Costing, and Value Chain.

Warning

Organizational Change Capability should be addressed prior to implementing any improvement initiatives. Inadequate change capability is the number one reason for failure by subpar performance. You’ve been warned!

Application and Use

For each enabler, assess the current and desired levels of enabler maturity to identify gaps in their performance management capability. It is understood that not every organization will need a strong focus in all twelve areas. Desired maturity will depend on the goals and environment of the organization.

Select the enablers that have the largest maturity gaps and offer the best improvement opportunities.

Identify the organization’s change capability and, as a result, the potential level of maturity that can be reached.

Choose the technique best suited to improving the selected enablers and implement an improvement initiative.

Review the new results and use the Framework to assess the next steps.

Enhance your business results by improving your performance management maturity…
Derek Sandison
Decimal

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