Qualified professionals, technological tools, a good work structure and efficient financial management: these are some of the factors that determine whether a company develops and makes a name for itself in the market.

However, in order for all of this to happen in accordance with your company’s strategic planning, attention needs to be paid to other administrative factors such as performance management – which is considered an essential point among current managerial practices.

To get a better understanding of performance management and to get a better idea of how to apply it to your company, take a look at this post’s tips!

So what is performance management after all?

Performance management has arisen as an alternative to the traditional techniques that have been used to compare desired results with achieved results. Traditional models only consider the work that was previously planned. Current models, however, allow for corrections to reflect what was necessary in practice– which can generate greater efficiency in various company functions.

This process is based on the idea that one has to share a company’s objectives with its employees, thus offering the necessary mechanisms to improve performance – as well as motivating them to complete their daily tasks. To do this, one has to define strategic goals, define roles, and define individual goals for every employee, as well as offer mechanisms that will enable them to work while keeping track of their own performance.

How should this type of management be applied?

In general, we can divide performance management into two fronts. The first front focuses on your company, or better, on your company’s activities. It demands greater control of corporate processes to guarantee that the pre-defined results can be achieved in a satisfactory manner. Thus to evaluate this part, we need to analyze your company’s performance indicators.

The second front focuses on your employees. They need to meet the goals that have been established for them, but these goals must be flexible enough to allow room for adapting to changes – which may come from the company or the market itself. This ability to adapt makes it possible to correct processes that are already underway so that the established goals can be achieved in the best possible manner.

What are the pillars of performance management?

To implement performance management in your company, you need to base it on three pillars. They consist of:

Continual improvement

The market is highly competitive and for a company to stand out it needs to innovate and reinvent itself. To do this, your company has to adopt a policy of seeking continual improvement in its processes — and this means change. These changes may face resistance, thus it will be necessary to work with your employees to be successful.

Achieve the goals

To offer the best products and services, your company needs to clearly define your goals and stipulate which working model will be adopted to achieve them. These goals should be specific, measureable, attainable, relevant and timely.

Skill profiles

To achieve the proposed goals and succeed in implementing a system of continual improvement, you need to have a team of professionals qualified for the work that you need to do. Your company needs to have a team of workers who are appropriate in terms of your goals and demands.

Why implement performance management?

This management model has much to offer your firm. Work goals are shared, your employees will be more motivated, productivity will improve and projects will tend to be more successful. Thus your work will become more efficient, and you will meet your customers’ expectations.

In addition to his, you can create an environment in which your employees feel valued and have greater incentives for professional development – because they need to constantly improve their skills to attain their goals.