Performance measurement is useful for identifying problems so that they can be dealt with. At the same time, the monitoring provides actionable information to verify progress on improvements.
When employees embrace performance measurement, there are open discussions about results. You see active collaboration across departments to explore ways to improve business outcomes. People take ownership of the results.
On the other hand, when employees shy away from performance measurement, they worry about being penalized when the results don’t meet expectations. They want to report on what is good only and avoid taking responsibility for poor results. This is not good for any business because problems are likely kept under cover until they become chaotic.
To build a healthy culture for performance measurement, you need to start from the top. Senior management needs to convey clearly the purpose of measurement, the benefits and how the results would be used. Shifting that mindset could take time. Start with an area where the manager is receptive to lead with results-oriented decisions and actions. It is about establishing a routine, a disciplined approach to measure, report, and most importantly, take follow up actions.
Without employees’ buy-in, it would be difficult to optimize your measurement effort, which is critical for effective execution of your business strategy and optimization of resource deployment.