Phase 6.1 – Article – Three Levels of Performance Management

The tangible value of strategy management comes from successfully achieving a desired vision and goal(s) as laid out in an organization’s strategic plan. The process by which you monitor and evaluate the achievement of desired outcomes is called performance management. This process accounts for all organizational activities taking place to ensure the organization’s strategic goal(s) and objectives are met in an effective and efficient manner. Performance management is best thought of as comparing the organization’s “Actual Results” against “Desired Results.” Any discrepancy, where “Actual” falls short of “Desired”, constitutes (by definition) a performance improvement zone requiring attention. (See Figure 1)

Figure 1: Performance Improvement Zone

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