Performance Management System: Part-2

A Prelude to KPI
March 4, 2019
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Performance Management System: Part-2

When we talk about Performance Management System, generally assumed that this is all about organizations, companies, or employees’ appraisal done in an ancient fashion confidentially or annual confidential report or to raise some salary or some gamification at the end of year or it may be a theory that is like a rocket science. Let us drill down a little bit in different perspectives.

“Education” is the backbone of any nation. What does it means? If we withdraw the education system from the nation, the nation would be simply backbone less. As human being, we have backbone too. Now if we take out the backbone from our body what would happen? Some lump of flesh.

Similarly, what constitute an organization? Alternatively, what are the resources needed to form a company? Usually we would say, oh! my dear poor man this is simple, “Man”, Machine”, Materials and other resources. Ok fine, agreed. Then, what the hell these MMR (man, machine & materials) do in the organization? Simply all perform. If they perform then what is the system to manage this performance?

Now let us look inside, whether it is written or unwritten, is there any country without “Performance”? Any society without “Performance”? Any family without “Performance”? Any shopkeeper or poor grocery shop in the remotest area of the country without Performance? Any student? Individual? Yes, except “MAD”. A mad man barely cares about his/her performance.

As we know, before the civilization, human being used to hunt wild animal to feed their families. Those who performed well of hunting they simply survived. Therefore, performance is everywhere. He who managed his performance well survived like a king and the others perished.

What people do in the organizations? “Perform tasks”, “work” etc. If we withdraw any of the “MMR” and particularly, “Man” from the whole system, is there any task or work or activity or accomplishment would happen? If the answer is “NO”, then we can say that Performance Management is the backbone of any nation/organization/society/family/individual either it is written or unwritten, formal or informal.

In the prelude, I have discussed about “Metron”. It means anything measurable, the Ancient Greek Measurement system. Any “measurable expression” that reflect performance is called KPI. Now the question what is “Performance” and “KPI”?

Whatever we do or act is performance. May be good or bad. Everything we do for our living is performance. In an organizational setting, we all perform a specific job, task, duties, responsibilities etc. with the application of knowledge, skills and abilities. There must be some specific system to administer or manage the system that we call performance management system.

Probably, you would say, yes we understand what performance is. Do not teach/remind us. That is great! Wait, why the buzzword or most fashionable word KPI (Key Performance Indicator) is bothering us? Why it is most fascinating? Why it is magical? What is the relationship of performance and KPI? What benefits it will bring for all of us as organization, manager, team and employee or an individual? Why it is important?

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