Performance review meetings

 

While efficient and effective reporting is an important part of the performance management communication process, providing with an analysis of the data collected and diffusion to interested parties, the review process is fundamental for getting out the most out the Balanced Scorecard performance management system,  and make it work properly (Meekings, 2005).

 

Performance evaluation methodologies have existed for decades, but mature evaluation programs inside companies are rare. This reality is consistent with  the traditional focus on accountability for process compliance, as opposed to accountability for results.

 

Evaluation is a critical component of performance management because understanding the relationship between the activities a company carries out and the results it achieves is essential to learning, improvement, and accountability.

 

Financial audits and compliance audits support this traditional approach, while performance evaluations and performance auditing are the practices of choice for performance management.

 

Criteria for efficient performance reviews 

If performance reviews are to be efficient, they must go beyond assessing whether measures are valid and accurately reported. According with Meekings (2005) several criteria must be met:

  • Review processes must be properly structured. All the persons involve in the review process must be clearly identified.
  • The review process must keep a certain predefined cyclicity. Frequency of review is critical
  • Review meetings should deliver value. Thus  data reported must be presented in a format that allows intelligent interpretation, the persons responsable for conducting the review makes the review matter  and all people involved are held accountable for outcomes
  • The review process must be well connected between different organizational levels

 

Frequency of reviews and its importance 

Learning and improvement is a continuous cycle, not a once-a-year event. To support continuous improvement, organizations need the capability to regularly review program performance and provide information so that corrective actions can be taken.

 

The frequency of reviewing is highly significant. According with Meekings (2005) research, it typically takes six periods of review to reach the „Ah- ha” point. „Ah-ha” is the point where you can connect the information received with the decision taken, the action to implement and the resulting outcome. Thus, with a weekly review, it usually takes 6 weeks for necessary connections to be made. In the case of a review made once every 6 months, the connections may never happen. (Meekings, 2005). The longer the review process, the harder is to make the necessary conection between, insights and outcomes, contribute to the improvement of organizational performance and keep the organizational strategic decision on track.

 

Reference

  • Meekings, A. (2005), Effective review meetings: the counter intuitive key to successful performance measurement, International Journal of Productivity and Performance Management, Vol. 54, No. 3, pp. 212-220.

BSC system : Usage

 

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