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Aligning performance management with organizational strategy


Aligning performance management with organizational strategy

OCTOBER 12, 2017

If you work at a company that has hundreds or even thousands of employees, organized into many diverse departments, you know how difficult it is to keep everyone on the same page. While you want employees to develop and hone their individual and team goals, you also must ensure that they don't lose sight of the organization's overall mission and objectives.

The challenge is to align performance management with organizational strategy so that everyone coordinates their individual goals with those of the organization. In a time when technology is advancing quickly and the workplace is constantly evolving, however, many companies find that achieving true business alignment can be elusive.

The Difficulty of Business Alignment

What obstacles do companies face in achieving and sustaining organizational alignment? In Harvard Business Review, Jonathan Trevor and Barry Varcoe write, “Complexity usually arises as the result of four primary factors: number of employees, variety of business lines, variety and expectations of differing customer groups and geographical dispersal."

According to a study by Fierce, Inc., organizations realize the importance of alignment, as tough as it is to achieve. Ninety-seven percent of the employees and managers surveyed said they believed that a scarcity of alignment within a team directly impacted the results of a given project or task.

The remedy for misalignment? Companies need to find the right employee development tools to get everyone on the same track—a tool such as the performance management system.

How a Performance Management System Promotes Alignment

A performance management system is not only crucial for employee training and development, but for organizational alignment as well. It offers:

  • Performance Reviews and Goal-Setting. On the platform, employees can set goals that are tied to organizational objectives and review those goals at any time. Managers and executives can easily track the progress of these goals and ensure they are being met.

  • Competencies and Skills Matrix. Managers can use the system to gain insight into workers' skills and close any skill gaps that may exist. They can also match the right employees to certain tasks and align talent to the organization.

  • Continuous Feedback. Through the platform, organizations can promote an environment of continuous feedback and coaching of employees by their manager. Managers can communicate with employees about their performance and goals and offer real-time feedback, forging stronger relationships.

  • Observation Checklist. With this tool, employees' skills are automatically recorded in real time and their competency is assessed. This process eliminates the need for paper-based evaluations, which only add to the complexity within an organization.

Getting Started with a Performance Management System

As the modern workplace evolves, with new technology emerging rapidly and complexity increasing daily, organizations need to work harder than ever to achieve alignment. A performance management system is a powerful tool to ensure that employees' goals align with your organization's vision—and that everyone is working toward fulfilling the same business mission.

Do you want to secure alignment at your organization? Find out how to use Cornerstone's Performance Management Software to ensure that all of your employees are looking toward the future with the same shared vision.

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