Performance management tools

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					Performance management tools

The balanced scorecard approach has become justifiably popular in recent years
because of its utility in providing accurate and thorough reviews of performance.
Such data is of big help to managers because such information provides them with
objective criteria upon which to base important policy and procedural decisions. Of
course, though, working with larger organizations entails using a robust, scalable
system for both gathering and analyzing scorecard data. This is where a select
scorecard tool could prove itself very handy.

The balanced scorecard approach refers to a strategic management approach that
focuses on the use of measurements or metrics drawn from a broad set of categories.
It was originally proposed as a better alternative to just considering financial
performance. Instead of restricting the use of metrics to just the financial perspective,
three other perspectives are considered. These are the Learning & Growth, Internal
Business Processes, and Customer perspectives. Taken as a set, these four categories
cover almost every significant aspect of an organization's performance. Hence, a
balanced scorecard would represent a whole or complete picture of performance, and
being able to consider such a complete set of information would definitely lead to
better decisions.

The essential idea behind this approach is simple. Metrics are relevant parameters that
measure particular aspects of performance. The balanced scorecard gathers a wide
array of these metrics in hopes of being able to accurately assess overall efficiency.
These metrics are chosen in alignment with an organizational goal or mission, which
would then be supported by more specific subgoals, and so on. These goals are thus
developed top down until they represent specific, measurable objectives for particular
departments and even individual employees.

Of course, the basic methodology in itself does not require any fancy tools or
programs. In theory, this approach could be implemented using just paper and pencil!
However, in practice, other factors such as efficiency and the time it takes to perform
surveys and compile data must be taken into consideration. Scorecard software tools
aim to reduce these practical obstacles and let management focus on getting results
instead of the implementation details.

This is why digital forms for collecting data, databases for storing the data in, and
statistical and graphical analysis software for displaying the results, while not
necessary, are very helpful. They can help in almost every step in the process. When
developing goals, visualization tools can help clarify and facilitate discussions. When
collecting metric data, automated software can make it easier. Gathering the data into
a single database and then performing analysis on it to get useful information can be
done using special programs. And finally, the results of this analysis can be displayed
and broadcast throughout the organization using scorecard tools as well.

All in all, a select scorecard tool can do wonders for helping managers implement the
balanced scorecard approach. And with this powerful performance management tool,
any organization should be able to improve itself on all fronts. No manager should
ignore such a potentially helpful approach, especially in times of crisis when quick,
accurate decisions are critical. : Over 200 ebooks, templates, forms for
performance appraisal.

Description: Performance management tools