June 4, 2009
"Knee jerk" reactions in the face of an economic crisis do not work
Do effective performance management practices drive superior performance? Absolutely yes, shows the results of a new survey from PricewaterhouseCoopers (PwC) in collaboration with the Telfer School of Management at the University of Ottawa and the Canadian Advance Technology Alliance (CATA), titled, "Performance management matters: Sustaining superior results in a global economy". According to the survey, those who achieved high financial performance were 26% more effective on average across 46 different performance management practices.
"The importance of taking a disciplined approach to managing organizational performance has been heightened by recent economic events," says Gregory Richards, Cognos Professor of Performance Management with the Telfer School of Management. "The results of this study indicate that well thought-out performance management practices can help organizations weather the many storms they will likely face in an increasingly uncertain operating environment."
The survey of over 400 senior leaders in both the public and private sector around the world showed that not only are high performers executing more effectively on their performance management practices, but they are also achieving much greater benefit from these efforts. High performers rated the contribution of these practices 31% higher on average across 11 different strategic, competitive, operational, and financial outcomes.
Furthermore, according to the study, those who had higher financial performance versus the competition outperformed lower financial performers by 54% on average across seven different key objectives. For example, the high performers were:
The comprehensive 60-page report identifies, among other findings, the seven key performance management practices that drives high performance, as well as provides detailed comparisons between private and public sector firms, Canada versus the rest of the world, and the difference in practices among small and large size firms.
"This study will prove to be critical reading for any organization seeking to get a better handle on how to maximize productivity, efficiency, and profitability as a result of their performance management regimens," say Kevin Wennekes, CATA’s VP Research and one of the co-authors of the report. "This study not only identifies which best practices high performing companies use, but provides interesting insight that can be translated into key competitive and market intelligence, such as the results around the trends in performance management technology adoption and use."
To order the full report or to receive your complimentary Executive SummaryContact Kevin Wennekes at email@example.com
Costs of full-report:
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CATA Net TVAdditional detail on this project is provided in a recent interview conducted on CATA Net TV with Gregory Richards, MBA, Ph.D, FCMC of the University of Ottawa (Telfer School of Management) and Philip Townsend, Partner, PwC.
Click here to view this segment.