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Performance Management matters – PricewaterhouseCoopers reports on Performance Management in the global economy

Friday, April 23rd, 2010

PricewaterhouseCoopers (PwC) conducted during 2008-2009 an exhaustive research regarding the importance of performance management in the context of a globalized economy. The research was lead by PwC Canada, in partnership with several academic and research institutions from Canada, Switzerland and Australia.

The methodology consisted of two stages: an online survey to more than 400 senior managers in both private and public sectors, followed by 12 in-depth interviews aiming to investigate several issues in a more complex perspective.

The purpose of the research was to provide answers to several core questions (PwC, 2009):

Do effective Performance Management practices contribute to driving superior performance?
Are these contributions the same in downturns as in good times?
Is performance management standardized or does it have to be customized for particular needs of organizations of different sizes and in different industries?

Source: PwC, 2009

Some of the most representative findings, were (PwC, 2009):

The identification of seven best practices that drive high performance and superior results, among which:

having a holistic, broad approach (high performers focus on broad issues, such as brand loyalty, employee satisfaction, service quality, aspects that can create competitive advantage);
creating linkages, alignment and integration of the measures to the key business drivers and cascading accountability at all organizational levels;
adopting high value planning practices, such as vision, mission and value statements and environmental and social responsibility plans;
developing advanced technology such as dashboards and business intelligence tools to complete the spreadsheets that are still predominant across respondents.

Performance management practices are equally essential in both recession and growth periods. As one argument, the interviews revealed that organizations with strong performance management programs can better manage costs strategically and, if the case, make difficult decisions in ways that minimize impact on the long-term.
Performance management in the public sector is not as different from the private sector as it might be believed. It was concluded that high performing public organizations are the ones that employ practices also identified in high performance private entities, such as linkage and alignment to strategy, use of advanced technology and use of value planning practices in the shape of vision, mission or values.

Canada was given a particular attention, being under the loop for comparison to the rest of the world. The finding was that Canadian organizations employ less robust performance management practices, but are better at overcoming potential barriers.

For complete overview of the research, please follow: http://www.pwc.com/ca/en/finance/performance-management/global-performance-management-research-study.jhtml

You can register for a full version of the report or directly download an executive summary.

Reference:

PricewaterhouseCoopers (2009), Performance management matters. Sustaining superior results in a global economy, CA.

The research was lead by PwC Canada, in partnership with several academic and research institutions from Canada, Switzerland and Australia. The methodology consisted of two stages: an online survey to more than 400 senior managers in both private and public sectors, followed by 12 in-depth interviews aiming to investigate several issues in a more complex perspective.

Tags: Global Economy, Performance Management, PricewaterhouseCoopers, PwC, Recession, Report
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