Performance is simply the action taken or process followed in doing a task or function.
Performance improvement – the continuous driver to be better, to grow, to achieve great things!
Directly related to business performance is the ability to change the business processes for greater effectiveness and efficiency increasing productivity while terms like specialisation, standardisation comes to mind followed by measurement, data analysis, statistical analysis, root cause analysis and finally process control and quality control and the overriding metric – customer satisfaction.
Remember the saying by Peter Drucker: “What gets measured, gets improved”…
Measuring performance involves the ability to measure the effectiveness of an initiative or action as well as the efficiency in which it is achieved. Similarly performance improvement involves the enhancement of effectiveness while optimising the efficiency.
Effective: Success in delivering a desired or intended result.
Efficient: Achieving maximum productivity through optimal use of resources with minimum waste or expense.
Depending on your business and your situation you must select or develop key performance indicators (KPIs) to calculate the effectiveness and efficiency of your activities – for business this is usually calculated in monetary terms. Once you understand your current performance you can set KPI targets and work on improvement initiatives.
I found this flow on Pinterest that gives a great overview of the processes involved in enhancing effectiveness and efficiency to increase business performance summarised in 5 habits of the mind:
- Know where time goes
- Focus on outward contribution
- Build on Strengths
- Concentrate on selected area that produce outstanding results
- Make effective decisions
Linking appropriate KPIs to this flow can measure progress and deliver improving results.
Performance (Effectiveness and Efficiency) can be influenced by various different factors – illustrated in the diagram below.
In using this diagram, a critical path (Shown in red above) can be drawn to improve performance in a specific area i.e. staff performance.
- First performance is defined,
- then measured to get a specific result (and understanding the impact it has overall).
- Understanding the results to determine which key skills, abilities and competeencies or lack there-of are contributing to the specific performance.
- Talent is needed to deliver performance – talent skills, abilities and competencies can be trained or recruited.
- Engagement is key – involve, motivate and empower your talent to respond and interact with the business – engagement brings a sense of happiness, which is a great motivator for creativity and performance.
- And the cycle repeats in never ending quality improvement loop.
This methodology can be adapted and used for performance improvement in any area of the business value chain.
Remember performance improvement is always reflected in the customer satisfaction. Satisfied customers engage with the business recurrently – hence revenue growth!
Let’s Talk – renierbotha Ltd specialises in the performance improvement of business and IT operations. Are you looking to achieve your goals faster? Create better business value? Build strategies to improve growth? We can help – make contact!