Enterprise strategic performance mainly includes five aspects:
The first is to define the target system, which mainly includes the design and decomposition of enterprise mission, vision and core values, enterprise strategy and strategic performance indicators. Defining the target system is mainly to formulate a performance management system that can effectively support the company's strategy in the next step, and to pull the company's business activities around the strategy all the time, thus establishing a strategic central organization;
The second is to establish a performance management operation system and implement the responsibility mechanism. The performance management operation system mainly includes four links: performance planning, performance implementation, performance evaluation and performance return, that is, the enterprise regularly evaluates the last performance cycle according to the strategic performance management system, evaluates the performance of the management and the person in charge of each position, and rewards monetary compensation and non-monetary compensation according to the evaluation results.
The third is organizational collaboration, including vertical collaboration and horizontal collaboration. Vertical cooperation mainly means that the company's objectives, departmental objectives and post objectives should be consistent vertically, emphasizing the vertical decomposition of indicators, that is, communication and cooperation between superiors and subordinates. Vertical cooperation mainly involves combing the organizational structure; Horizontal cooperation mainly refers to the horizontal decomposition of cross-departmental goals through processes, emphasizing the horizontal decomposition of indicators, that is, communication and cooperation between parallel departments or parallel positions. Horizontal collaboration mainly involves business process optimization.
Fourthly, according to the organizational performance objectives and employee post performance objectives, the post qualification system and competency model are established to improve the strategic execution of the organization and employees;
Fifth, to cultivate a corporate culture that supports performance management, it is especially necessary to do two jobs, namely, performance coaching and performance communication, which are essential in the four links of performance management system. To do these two tasks well, we need to strengthen the leadership of middle and high-level enterprises. Eight-step method of strategic performance system design
Text/Chief Management Consultant of Wang Xiaogang Rong Hui Enterprise Management Consulting Co., Ltd.
We all know that the realization of enterprise strategy depends on the support of enterprise performance management system. The higher the performance management level of an enterprise, the greater the possibility of achieving its strategic objectives; The lower the performance management level of an enterprise, the less likely it is to achieve its strategic objectives. How to effectively link strategic planning with performance management system, take "strategic performance" as the main line, clarify the linkage relationship between enterprise management systems, and enhance the strategic execution of enterprises is a management practice topic of common concern to business and consulting circles.
The so-called strategic performance management, theorists and consultants agree that building a performance management system based on enterprise strategy is a systematic project, and enterprises need to invest a lot of resources in the process of implementing strategic performance management practice. Enterprise strategic performance mainly includes five aspects:
The first is to clarify the company strategy. It mainly includes corporate mission, vision and core values, corporate strategy, business strategy, functional strategy and internal and external environment scanning. Defining the company's strategy is mainly for the next step to formulate a performance management system that can effectively support the company's strategy, and guide the company's various business activities to always focus on the strategy, so as to establish an organization with strategy as the core.
The second is to establish a performance management system and implement the responsibility mechanism. The performance management system mainly includes the design of performance appraisal contents such as strategic KPI, and the four links of performance planning, performance implementation, performance appraisal and performance return in performance management operation. That is, the enterprise regularly evaluates the last performance cycle according to the strategic performance management system, conducts performance appraisal on the management and the person in charge of each position, and links the assessment results with personal career development, personal ability improvement, salary and benefits and other incentive mechanisms.
The third is organizational collaboration, including vertical collaboration and horizontal collaboration. Vertical cooperation mainly means that the company's objectives, departmental objectives and post objectives should be consistent vertically, emphasizing the vertical decomposition of indicators, that is, communication and cooperation between superiors and subordinates. Vertical cooperation mainly involves combing the organizational structure; Horizontal cooperation mainly refers to the horizontal decomposition of cross-departmental goals through processes, emphasizing the horizontal decomposition of indicators, that is, communication and cooperation between parallel departments or parallel positions. Horizontal collaboration mainly involves business process optimization.
Fourthly, according to the organizational performance goal and employee's post performance goal, the post qualification system and competency model are established to improve the strategic execution ability of the organization and employees.
Fifth, to cultivate a corporate culture that supports performance management, it is especially necessary to do two jobs, namely, performance coaching and performance communication, which are essential in the four links of performance management system. To do these two tasks well, we need to strengthen the leadership of middle and high-level enterprises. ?
Eight-step method of strategic performance system design
Step 1: Determine the company strategy.
To implement strategic performance management, the company should first sort out the strategy and make clear that the main work of the company's strategy is to confirm the strategic issues:
Enterprise mission system statement
The task system mainly includes the mission, vision and core values of the enterprise. The so-called corporate mission is the role and responsibility that enterprises should play in social and economic development, that is, the reason and value of the existence of enterprises, and the corporate mission is relatively stable. Vision is also called vision, that is, what kind of enterprise the enterprise wants to be in the future. This is the picture that the enterprise will always strive to achieve, and it shows the expectation and pursuit of the organization for the future. Core values are the standard for enterprises to judge right or wrong, that is, the standard for enterprises to identify and oppose. Core values are the norms of all employees' behaviors. The overall strategic goal is the concretization of the enterprise's mission and the greater goal pursued by the enterprise.
Theme of development strategy appeal
Development strategy is also called group strategy and company strategy. The development strategy mainly describes the business scope of the enterprise, the existing business portfolio and the fields to be entered, the development strategy of growth, maintenance or contraction, the choice of products, regions and customers, whether to adopt single business or diversification, whether to adopt related diversification or unrelated diversification, etc.
The theme of competitive strategy appeal
Competitive strategy is also called business unit strategy. Competitive strategy mainly describes how business units compete, and whether to adopt low-cost, differentiated or centralized competitive means according to strategic advantages and market scope.
The theme of functional strategy appeal.
Functional strategy mainly describes what efforts have been made to enhance competitiveness, such as what measures have been taken in finance, marketing, human resources, logistics, production, research and development, procurement and so on. Support and coordinate the company strategy and business strategy, and the functional strategy emphasizes concreteness and operability.
An organization's task system has long-term stability, even for a long time, it will not change greatly, and its development strategy is relatively stable, and it will not change much in the medium and long term. Competitive strategy needs to be adjusted in time with the change of market competition, and functional strategy is a concrete measure to support and coordinate the company's strategy and business strategy.
Step 2: Draw a strategic map
After determining the strategic goal of the enterprise, a series of assumptions contained in the enterprise strategy are transformed into a series of concrete causal chains. Draw a strategic map through causal chain. The idea of strategic map drawing is to use the decomposition method of value tree model to decompose the strategic objectives of enterprises (of course, it can also be KPI indicators, which are usually not detailed at this stage, so strategic objectives are used to describe the strategic map of enterprises) from top to bottom, in turn, according to the logical relationship between finance, customers, internal operations and learning and growth. The strategic map integrates different measurable goals on the enterprise balanced scorecard into a causal chain, thus linking the expected results of the enterprise with the driving factors of these results. Strategic map is an intuitive expression of the causal relationship between strategic objectives of enterprises, which integrates the four levels of objectives of the balanced scorecard to describe the company's strategy and the path to achieve strategic objectives.
On the financial level, it mainly expounds the measurable financial results produced by the business behavior of enterprises, which reflects the company's appreciation of shareholder value.
At the customer level, the focus is on the customers and market segments that the company expects to acquire, and how the company can meet the needs of internal and external customers.
The focus of internal operation is to attract and retain customers in the target market and meet shareholders' expectations for financial returns. What core business processes must the company be good at and conform to the company's core values?
The focus of learning and growth is to obtain these breakthrough achievements and success, and what kind of core knowledge and innovative spirit organizations and employees need.
Generally, each goal of the balanced scorecard only needs two performance indicators to accurately express its meaning, and we can try our best to control the goals of each dimension within three. Professor Kaplan and Dr. Norton, two authors of the balanced scorecard, believe that each level of the balanced scorecard needs 4 ~ 7 indicators, and 16 ~ 25 indicators can basically meet the needs. Among the four levels, 3 ~ 4 indicators are sufficient in financial level, 5 ~ 8 indicators in customer level, 5 ~ 10 indicators in internal operation level and 3 ~ 6 indicators in learning and growth level.
Step 3: Determine the strategic theme
Use functional analysis system technology (FAST method for short) to identify and decompose strategic topics. Enterprise value chain usually includes marketing, product development, procurement and supply, production and operation, customer service and other core value chains. In addition to the core value chain, there are auxiliary value chains such as human resources, IT, finance, law, administrative logistics and corporate culture. We only identify the relevance of strategic themes according to the core value chain and auxiliary value chain of enterprise value chain and decompose them into various departments, and find out the factors that can drive strategic themes and goals from various departments.
Step 4: Define the mission of the department.
When determining the tasks of a department, we should pay attention to the following points:
The mission of a department is not a simple superposition of all the responsibilities of the department, but must be able to highly summarize the work content of the department and clarify the responsibilities and objectives of the department;
The departmental mission is the support of each department to the company's strategy, and the departmental mission must closely focus on the company's goals;
The task of this department focuses on describing its value, significance, direction and function. The process of determining the mission of the department is a process of repeated discussion with the head of the department. The department mission must convince the person in charge of each department, and make it clear that the purpose of the department mission is to lay a good foundation for the seventh step to implement the indicators of the company and various departments.
While clarifying the mission of the department, it is also necessary to optimize the company's value chain process and sort out the organizational structure. Clarify the mission of the department, optimize the process and sort out the organizational structure at the same time.
Step 5: Use the value tree model to find the causal relationship.
Use the value tree model to find out the causal logical relationship between process and strategic theme. The most suitable tool for causal chain analysis is the value tree model. The value tree model is to find the corresponding logical relationship between goals (or indicators). We listed measurable objectives, corresponding key performance indicators, key driving processes and corresponding key process performance indicators in the company's strategic map. The contents that need to be clarified are: strategic theme, key performance indicators that can measure the strategic theme, key driving process analysis, and preliminary determination of key process performance indicators.
Step 6: Establish a causal analysis table.
Through the analysis of the value tree model, the causal logical relationship between the seemingly chaotic indicators is established. At this time, we can put the indicators into the balanced scorecard. At this point, you can actually use indicators to describe the company's strategic map. In the previous second step, we described it with a goal. After the causal relationship is established by the value tree model in the previous step, we can fill in the corresponding lagging/driving indicators in the causal analysis table according to the corresponding lagging/driving indicators in the value tree model diagram.
Step 7: Implement the indicators of the company and all departments.
The department is the undertaker to realize the company strategy. When designing departmental indicators, we should pay equal attention to the results and process of enterprise strategy realization according to the idea of balanced scorecard, and comprehensively design annual indicators and monthly indicators (or quarterly indicators and semi-annual indicators). Finally, what indicators should be assessed at the company level? Which indicators are put on the departmental level for assessment? Generally speaking, those achievement indicators (also known as lagging indicators) are company-level assessments, mainly annual assessments; These process indicators (also known as driving indicators) are evaluated at the departmental level, with monthly (quarterly and semi-annual) evaluations as the mainstay.
Step 8: Design of index elements
Company-level indicators and department-level indicators are undertaken by specific positions within the company. Therefore, the design of index elements of specific positions is the most important thing in building a strategic performance system. The design of post indicators must be based on the organizational hierarchy and post sequence, and fully integrated with the company's strategy, departmental responsibilities, post responsibilities and business processes, and at the same time ensure that the assessment indicators can be achieved and realized by the post subject through efforts.
Generally speaking, the index elements involve the design of post performance appraisal table (also known as KPI agreement, post target responsibility book, post contract, performance contract, etc.). The specific name of some companies' assessment forms can be determined according to the needs of the company and the content design of assessment indicators.
At present, the popular design of post performance appraisal table mainly combines quantitative indicator KPI (key performance indicator), qualitative indicator GS (goal setting) and competency indicator CI (competency indicator) (of course, every enterprise can design post performance appraisal table as needed).
Appraisal indicators include: indicator number, indicator name, indicator definition, calculation unit (or appraisal scoring standard), indicator target value, indicator setting purpose, responsible person, data source, appraisal cycle, appraisal indicator weight distribution and indicator scoring method.
See Mr. Wang's monograph "Best Practices of Strategic Performance Management" for details.
Introduction to Best Practices of Strategic Performance Management
This book aims to provide a set of practical methods to help enterprises improve their performance. The author expounds the whole process of building a strategic performance system from the perspective of application, and introduces in detail various methods, tools and operating steps needed for the design of a strategic performance system through the "eight-step method". We firmly believe that if China enterprises practice according to the methods introduced in the book, adhere to the "strategy and performance management" as the main line, and clarify the linkage relationship between the management systems of enterprises, they will certainly achieve breakthrough results.
Directory of Best Practices in Strategic Performance Management
Chapter 1 Common Problems and Solutions in the Implementation of Enterprise Strategy in China
1. 1 Eight common problems in the implementation of corporate strategy in China.
1.2 China enterprises need to establish strategic focus organizations.
1.3 Eight-step method for strategic performance system design
1.4 responsibilities of strategic performance management
Chapter II Introduction of Strategic Performance Management Tools
2. 1 introduction of balanced scorecard
2.2 the introduction of key performance indicators (KPI)
2.3 Introduction to Management by Objectives
2.4 the introduction of economic added value (EVA)
The third chapter is the design practice of strategic performance system.
3. 1 clarify the company's strategy
3.2 Draw a strategic map
3.3 Determine the strategic theme
3.4 Clear departmental tasks
3.5 Value Tree Model to Find Causality
3.6 the establishment of causal analysis table
3.7 Implement the indicators of the company and departments.
3.8 Design of Exponential Elements
Chapter IV Practice of Strategic Performance System Support System
4. 1 competency model and post qualification system design
4.2 Corporate Culture and Strategic Performance Management
4.3 Leadership and Strategic Performance Management
The fifth chapter is the operation practice of strategic performance system.
5. 1 Operating contents of strategic performance management
5.2 Strategic Performance Management Practice (1): Performance Plan
5.3 Strategic Performance Management Practice (II): Performance Implementation
5.4 Strategic Performance Management Practice (3): Performance Evaluation
5.5 Strategic Performance Management Practice (IV): Performance Return
Chapter VI Presentation of Results of Strategic Performance Management Consulting Project
6. 1 Demonstration of the design results of a company's strategic performance management system
6.2 Display of the design results of the company's ability and quality index library
catalogue
Chapter 1 Challenges and Solutions for Growth Enterprises in China
Eight Challenges of Growing Enterprises in China
1.2 Overview of enterprise strategy performance
Case 1- 1 strategic transformation of Guangming joint-stock company
Case 1-2 Feili Company's strategic objectives are out of line with performance management.
Case 1-3 Why do the expectations of the chairman always fail?
1.3 success factors of strategic performance management practice
Case 1-4 Why did the strategic performance management model of Huaxing Company fail?
Case 1-5 strategic performance management model successfully promoted the market structure transformation of Jiahong Company.
1.4 responsibilities of strategic performance management
Chapter II Strategic Performance Management Tools
2. 1 balanced scorecard
2.2 Key Performance Indicators (KPI)
2.3 management by objectives (MBO)
2.4 Economic added value
Question 1 What are the levels of organizational performance management?
Question 2: Characteristics and scope of application of strategic performance management tools
Chapter III Index Categories and Index Measurement Methods
3. 1 Key Performance Indicators (KPI)
Question 1 How to check the validity of KPI?
Question 2: How to decompose enterprise KPI?
Question 3: How to define KPI?
Question 4: How to collect performance data?
Question 5: Who is suitable for KPI assessment?
How to design the KPI weight of the problem?
How to design the KPI scoring standard?
Question 8: How to design KPI assessment form?
3.2 Work Goal Setting (GS)
Question 1 How to define GS?
Question 2: Who is suitable for GS assessment?
Question 3: How to design the GS evaluation form?
Question 4: How to design KPI+GS evaluation table?
3.3 Key Quality Indicators (KCI)
Question 1 How to define KCI?
Question 2: Who is suitable for KCI assessment?
Question 3: How to design KCI evaluation form?
3.4 Index measurement method
Chapter IV Design of Strategic Performance System
4. 1 clarify the company strategy
4.2 Draw a strategic map
Case 4- 1 How does Kexing Company draw a strategic map?
Case 4-2 How does Sunshine Company Determine Customer Value Proposition
4.3 Determine the strategic theme
4.4 Clear departmental tasks
Case 4-3 How does Huimin Company do a good job in vertical consistency and horizontal coordination of strategic performance?
Problem 1 Market Structure Transformation
Question 2 Trial production of new products
Question 3: Delivery of raw materials
Question 4: Product quality problem
Question 5: New product development
Case 4-4 Organizational Function Optimization of Jiahong Company
Case 4-5 South Automobile Business Process Optimization
4.5 Looking for causality
4.6 Establish causal relationship analysis table
4.7 Implement company and department indicators
4.8 Design of Exponential Elements
Case 4-6 How does Xu Ya Company make employees pay attention to performance?
Question 1 How to design the company's performance?
Question 2: How to design department performance?
Question 3: How to design the post responsibility index?
Chapter V Support System of Strategic Performance Management
5. 1 plan management
5.2 Budget management
5.3 Management report
Case 5- 1 Puzzlement of Dafeng Company's performance barbecue
Chapter VI Strategic Performance Operation System (I): Monitoring, Feedback and Adjustment of Strategic Performance.
6. 1 Overview of strategic performance operation system
6.2 Monitoring, feedback and adjustment of strategic performance
Chapter VII Strategic Performance Operation System (II): Performance Plan
7. 1 summary of performance plan
7.2 formulation of annual business plan
Case 7- 1 Why can't Dongming Company complete its annual business plan?
Question 1 How to design the target value of the indicator?
7.3 formulation of employee performance plan
Case 7-2 Lack of employee participation in the formulation of performance indicators in Huarui Company
Case 7-3 The performance indicators of Li Lan Company are inflexible.
Case 7-4 The performance indicators of Shengli Company are controversial.
7.4 Employee Capacity Development Plan
Chapter VIII Strategic Performance Operation System (III): Performance Implementation
8. 1 Supervisor Training and Counseling
8.2 Responsible for process management
8.3 Employee Performance Execution
Case 8- 1 The line manager of Tiantai Company lets go.
Chapter 9 Strategic Performance Operation System (IV): Performance Evaluation
9. 1 organizational performance evaluation
Case 9- 1 Performance Evaluation of Huaneng Company's Balanced Scorecard
9.2 Employee Performance Evaluation
Case 9-2 Manager Qin of Yongtai Company was flustered during the performance interview.
Question 1 How to revise the employee performance score for the second time?
9.3 Performance Improvement Plan
Chapter 10 Strategic Performance Operation System (V): Performance Reward
10. 1 The performance results shall be applied to employee compensation and rewards.
10.2 Performance results applicable to employee career development
Case 10- 1 Talent Management of Galaxy Group
Attached 1 performance management ability questionnaire.
Attachment 2 Introduction of Rong Hui Enterprise Management Consulting Co., Ltd.
refer to