An organization's Performance Management System is a set of mechanisms (both processes and techniques) designed to increase the probability that people will behave in ways that lead to the attainment of the organization's objectives. The development of the Performance Management System is a complex task that requires the effective design and linking together of the sub-systems shown in the diagram below:

• Key Result Areas (from the strategic plan) - Areas of performance essential to the organization's success
• Objectives (from the strategic plan) - Broad statements of what needs to be achieved in each Key Result Area
• Goals (from the strategic plan) - Specific, measurable, time-dated performance targets to be achieved. Each objective will have one or more goals.
• Measurement - Profit measurement, Monetary measurement, Non-Monetary measurement
• Progress Review - Information about how effectively the organization, department, or individual is performing relative to a goal.
• Performance Evaluation - Systematic evaluation at the end of the planning period of performance against goals. Typically serves as the basis for future goal setting.
• Rewards - Extrinsic, Intrinsic, and Psychic

Although our work on Performance Management Systems is customized to meet the needs of each organization, there are some key themes when Management Systems works with clients in this area:

• We perform an analysis and evaluation of the current performance management system at the organizational, departmental and individual levels. We work with you to evaluate your current performance management system to determine if all of the necessary components are in place. We look at the strengths and limitations of each component, the extent to which they are functioning effectively, and recommend any necessary changes.

• We work with companies to develop Key Result Area-Based Role Descriptions to enable effective performance management at the individual level. For the individual, the role description, with its Key Result Areas, Objectives, and Goals is the equivalent of the strategic plan for the organization as a whole.

• We work with senior management to ensure understanding and buy-in for the design of the entire system and its components.