10 things you should know about performance management
For those of you who couldn’t make it to IBM Vision 2015 this year, here are some standout quotes and illuminating statistics from the financial and operational performance management track.
1. Performance management is making sure that strategic priorities are aligned with resources.
“Well, I look at performance management, or in general financial and operational performance management—I put those two together—as really corporations that are going out and trying to make sure their strategic priorities are aligned with the resources [they need] to get them done.” – Dan Beer, Director of Performance Management Business Unit and Business Analytics, IBM
2. When you go beyond budgeting and planning, you end up with strategic performance management.
“When you go beyond budgeting and planning, you end up [with] what we call strategic performance management across the enterprise.” – Dan Beer, Director of Performance Management Business Unit and Business Analytics, IBM
3. Strategic performance management helps organizations achieve alignment and adaptability.
"The business outcome you're trying to achieve is...alignment and adaptability, versus just executing on reporting alone." – Dave Vellante, Host, theCUBE.
4. A lack of resources is preventing organizations from becoming adaptive and aligned.
Most companies struggle to connect their strategic priorities to the resources required to make them a reality. Only 11 percent of managers surveyed for a recent Harvard Business Review article believe they have adequate human and financial capital resources to achieve their strategic priorities.
5. A lack of trust in other business units is preventing organizations from executing on strategic objectives.
Eighty-four percent of the managers surveyed in the Harvard Business Review article trust their direct boss and their direct reports. But when we test that faith across the organization, only 9 percent believe they can trust or count on those in other business units across the enterprise.
6. Organizations are struggling with conflict, duplication, wasted costs and wasted time.
As a result of the aforementioned lack of coordination, trust and alignment across the enterprise, organizations are dealing with conflict and duplication of efforts and resources, which leads to wasted costs and wasted time.
7. The "New Way to Work" is about collaboration.
“When you’re working, you’re collaborating. And the whole organization needs to collaborate together.” – John Colthart, Product Experience and Design for Watson Analytics, IBM
8. Organizations need to apply business insights when setting strategic priorities.
Dan Beer, Director of Performance Management Business Unit and Business Analytics at IBM explained in his section of the keynote that there is an importance versus performance gap for finance activities at organizations. These organizations believe they are not applying enough business insights to setting strategic priorities.
9. Organizations need to stop running their businesses with siloed spreadsheets and intuition alone.
“It’s not surprising, because when asked, two-thirds of the organizations use either intuition or unstructured and siloed spreadsheets to run their organization. There has to be a better way.” – Dan Beer, Director of Performance Management Business Unit and Business Analytics, IBM
10. Learn more about Financial and Operational Performance Management to achieve strategic business outcomes.
Register for the June 11 roundtable to hear what your peers have to say about performance management, and learn more about the quotes in this post by watching “Taking the Next Step: Unlocking the Strategic Performance Management Advantage” and Dan Beer’s theCUBE interview on IBM VisionGo.