Performance reviews can be invaluable for setting criteria for advancement, aiding in salary reviews, assessing capabilities for promotion or transfer, identifying gaps in training or a job description, and identifying where additional resources might be needed.
To track KPIs, most companies use a Balanced Scorecard. This is a tool that has long been used in strategic business management and is designed to provide a framework to manage resources to achieve strategic objectives
as with any business operation, employee development needs to be approached as a structured system, with objectives clearly established at the outset and measurable results along the way. The larger objective is to improve employee results and performance in a way that promotes professional and personal growth, at the same time it enhances the employee-manager relationship.
The balance sheet is typically used to calculate the net worth of the business, and includes liabilities, cash, and equipment. A basic tenet of double-entry bookkeeping is that the total assets (what the company owns) should equal the liabilities plus equity, i.e. the books should balance. Subtracting the liabilities form the assets reveals the net worth of the business.
most managers only measure outputs, not inputs, which is like telling a Little League team to score more runs, rather than actually explaining how to swing a bat and make contact with the ball. Similarly, most companies measure traffic, revenue or earnings, without considering how to improve the company at an atomic level: how to make a meeting better, or an engineer more productive.
One of the primary reasons that the strategic planning process fails is because the plan is written and then set aside to gather dust. Once the plan is created, it needs to be communicated to the parties involved in its success. Provide metrics that align with the expectations for the plan’s outcome
The litmus test for each of your strategic objectives is that it has to meet each of these five criteria. If the objective fails to meet one or more of these criteria, then either assess it to determine if it is truly strategic, or revise it to make it more specific, measurable, actionable, realistic, and time bound.