The gains to be had from an efficient and effective enterprise performance management (EPM) system are manifold. They include greater workforce productivity, the ability to retain the best talent, enhanced operational efficiencies and lower HR costs.
Globally, companies are adopting on-demand software solutions to help step up their workforce optimisation efforts. EPM systems help companies capitalise on the value of their existing data assets. However, implementing the proper EPM system can be difficult.
Here are three of the most important steps:
1. Introduce change gradually
Organisations make the mistake of keeping managers in the dark by failing to communicate adequately, and failing to inform them of the benefits they will derive from the new system.
Constant communication and user training are vital for success as this ensures that managers will not view the new system as yet another onerous disruption. Communicating properly and introducing change slowly can help turn resistance and fear into acceptance and enthusiasm.
This enthusiasm helps drive adoption throughout an organisation, creating what is known as a virtuous feedback loop, where success in one part of the business leads to evangelisation and rapid take-up elsewhere.
It's important to understand that the objective of transforming the performance management process impacts almost every facet of the company and can take several years to achieve. Introducing too many changes too quickly may overwhelm managers and employees. Rather focus on a few key outcomes and demonstrate the successes to employees. By setting achievable, measurable goals, change is introduced in a manner in which people can cope with it, rather than feeling they have to relearn their jobs.
2. Get buy-in from top executives
Senior executives must buy into the concept of creating a performance management culture. Until they do so through active participation, little can be achieved. Executive backing is a necessary first step in introducing an organisation to an EPM system. Gaining buy-in from key leaders is a requirement for budget approval, but it also means the organisation will pay attention to the new projects coming from HR. Corporate leaders may not care about the specific features of the EPM system, but they definitely care about how it impacts the bottom line.
Introducing too many changes too quickly may overwhelm managers and employees.
Adrian van der Merwe is MD of 8th Man Consulting.
With dashboards and reports that show trend data relating to important business metrics - such as reduced costs, reduced time to market, or improved customer service due to improved employee performance across the organisation - buy-in can be pretty much guaranteed. Before going ahead with the implementation, put company execs in touch with others who have experienced the benefits of EPM in their own organisations.
Executive buy-in is always key to the success of any software or new process/workflow implementation. Obtain it early on and half the job is done.
3. Establish a culture of performance
A culture of performance means more than implementing an EPM system or completing employee performance reviews. Creating that culture often requires a big shift in the attitude of an organisation towards its employees. People are no longer valued merely as a “workforce”, but as a group of individuals.
In line with that shift, the organisation is transformed into one that values unique contributions, recognises strengths, assists employees in overcoming their weaknesses, and understands the value of each individual.
Of critical importance here is the development of the manager-employee relationship. Too often, managers are not given the tools, training or support they need to be successful in this new relationship with their employees. Without those, the process may seem to be futile and may even be abandoned by management. Managers need to meet with each of their employees to discuss performance expectations, goals and objectives, career development, and more. They have to become mentors and coaches who have their employees' performance top of mind. People resistant to a culture of change need to be identified and coached - or managed out of the business.
EPM can help transform an organisational culture: it has certainly done so in many companies. These three steps can help businesses achieve similar success, and they are all eminently doable.
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