Welcome to our blog, the digital brainyard to fine tune "Digital Master," innovate leadership, and reimagine the future of IT.

The magic “I” of CIO sparks many imaginations: Chief information officer, chief infrastructure officer , Chief Integration Officer, chief International officer, Chief Inspiration Officer, Chief Innovation Officer, Chief Influence Office etc. The future of CIO is entrepreneur driven, situation oriented, value-added,she or he will take many paradoxical roles: both as business strategist and technology visionary,talent master and effective communicator,savvy business enabler and relentless cost cutter, and transform the business into "Digital Master"!

The future of CIO is digital strategist, global thought leader, and talent master: leading IT to enlighten the customers; enable business success via influence.

Thursday, June 22, 2017

The Weekly Insight of the “Future of CIO” 6/23/2017

Blogging is not about writing, but about thinking, brainstorming, innovating and sharing.
The “Future of CIO” Blog has reached 1.9 million page views with 3800+ blog posting in 59+ different categories of leadership, management, strategy, digitalization, change/talent, etc. The content richness is not for its own sake, but to convey the vision and share the wisdom. Here is the weekly insight about digital leadership, IT Management, and Talent Management.

  The Weekly Insight of the “Future of CIO” 6/23/2017
  • Take an Evolutionary Approach to Manage Innovation? At the static industrial age, most organizations are focusing on improving margins by reducing the bottom-line cost rather than the top-line growth. For those organizations, innovations are still serendipitous. However, with increasing speed of changes and continuous digital disruptions, businesses today face fiery competitions and rapid digital shift either technologically or economically, innovation is no longer “nice to have,” but must have differentiated business capability. So, serendipity can be planned into innovation management. Forward-looking organizations take an evolutionary approach to manage innovation in a structural way.

  • Digital CIOs as Business Strategists and Artistic Technologists At the industrial age, CIOs are often perceived as the technology geek or the back office technician to keep the lights on, and most IT organizations are struggling to align with the business, get stuck at the lower level of maturity for keeping things functioning. Nowadays, the lightweight digital technologies become more mature, IT is striving to integrate with the business, and IT has to move up its maturity from functioning to firm to delight. Thus, digital CIOs need to be the business strategist and artistic technologist for running high-innovative, high-performance, and high-mature digital organization.

  • The Corporate Board as the Mastermind of the Digital Transformation Digital boards are like the steering wheel of their company, leading the business toward the uncharted water and blurred territories for reaching the ultimate digital destination. Digital boards as the strategic advising role are also the “mastermind” behind digital transformation to oversee strategies, drive innovation, catalyze changes, and monitor performance.


  • The New Book "Performance Master - Take a Holistic Approach to Unlock Digital Performance" Preview Corporate Performance Management is about managing and monitoring the corporate performance via the well-defined set of performance indicators. Corporate performance management is not just about managing numbers with metrics, but the number with context. The various activities are needed to manage performance— strategic and operational plans, metrics, day-to-day decisions. So, Enterprise Performance Management is critical, because new competitive challenges and active market changes underscore the strategic imperative of managing performance more than ever. But what’s exactly corporate performance management regarding for, and what’s it related to other key components of corporate management such as strategic management, risk management, information management, decision management, or talent management?

Blogging is not about writing, but about thinking and innovating the new ideas; it’s not just about WHAT to say, but about WHY to say, and HOW to say it. It reflects the color and shade of your thought patterns, and it indicates the peaks and curves of your thinking waves. Unlike pure entertainment, quality and professional content takes time for digesting, contemplation and engaging, and therefore, it takes the time to attract the "hungry minds" and the "deep souls." It’s the journey to amplify diverse voices and deepen digital footprints, and it's the way to harness your innovative spirit.

The New Book “Performance Master” Chapter 1 Introduction: Digital Performance Assessment

Making an objective performance assessment via selecting the right measures and measuring them right are both art and science.


There is no doubt that well-defined measures and KPIs are important factors to manage performance and keep track of strategy execution effectively. However, everything has two sides: Do some performance measurement initiatives encourage quantity over quality? Are you measuring something simply because you can or because you always have done that even though the operating environment may have changed? And how to make an objective performance assessment as the first step in taking a holistic approach to unlock digital perforamnce?

The performance KPI setting should focus on achieving the ultimate goals of the business as a whole: It is dangerous to impose metrics just because the focus on what’s measurable is manageable. Every metrics should have a good reason for being measured. So often you see things measured that are never really reviewed or communicated. The absence of inquisitive conversation around these issues can lead to disconnect between actions and the measurement of success. Performance assessment, when used in an individual context, tends to focus on all that is good that has been achieved by the individual, but sometimes, managers have to ask tough questions such as, if individuals’ performance were so good, why is the company failing? From the team performance perspective, there are always two sides of measurement: The measures to motivate teams to achieve more and the measures to distract management from the ultimate business goals. The rule of thumb is that whatever metrics/KPIs you emphasize are the ones your team will focus on. Put another way, whatever is being watched is what you will get.

Change assessment and measurement: Measuring is a good starting point to changes. Change is inevitable, and Change Management is an important management discipline in running a contemporary and dynamic digital organization. A change manager needs to assess business changeability and evaluate every specific scenario to create the change program success. Change Management measures or KPIs are strong tools, which can be both rewarding, but also cause damage to an organization if measuring wrong things or measuring them in the wrong way. Perhaps the difficulty in measuring Change Management is that the very thing we are measuring is changing. There is no one size fits all change efforts, and there is no magic formula to measure changes as well. The other consideration is that the part you are measuring is only a snapshot of the entire organizational picture, each change effort is so different, some Change Management needs to be measured via leading indicators, while others are better measured via lagging indicators.

The promise and peril of metrics and performance assessment: A performance measurement system is a necessary foundation for continuous improvement. Metric is part of transparent visual management allowing pulling. Metrics can help you get some objective perspective on what you are trying to manage, but they need to be crafted and interpreted well. Without measurements, it can be hard to tell whether attempted improvements make the situation better or worse. The maxim “You can’t manage what you don’t measure” has come to be taken as a truism. However, the different metrics only make sense at different stages in an organizational maturity. Metrics are tools in the toolbox, but just because you have a hammer, not everything is a nail. Further, there are people extremely obsessed by metrics who end up creating a huge and sophisticated set of meaningless metrics and that some managers put a lot of energy on getting better indicators, just because they want beautiful numbers to report and not because they are genuinely interested in helping their teams improve. In fact, there are a lot of metrics abuse and false assumptions of the metrics. What gets measured, get managed. The goal of performance assessment and management is not only to do things right but do the right things and continuously improve doing that.

Making an objective performance assessment via selecting the right measures and measuring them right are both art and science. The goal of performance measurement is to leverage trade-off, break down silo things, encourage positive behaviors, and ensure the business as a whole to reachiing the best performing result.

CIOs as “Chief Innovation Officer”: Re-imagine IT with Digital Themes

IT can no longer just provide the commoditized services, or run as a cost center. IT has to move up its maturity from functioning to firm to delight.

IT is in the middle of a sea change because of the exponential growth of information and emergent lightweight digital technologies. Traditional IT organization is monolithic, isolated, stereotypical, and slow to change. Embracing digital is inevitable as that is now part of the reality. CIOs as “Chief Innovation Officer”: How to reimagine IT with digital themes and reinvent IT to get digital ready?


Information potential directly impacts the business's potential of organizations: From traditional lens, IT is an engineering discipline, from digital lens, IT needs to embed art into the science to explore the art of possible. The art and science of information management are to optimize its usage and achieve its value and maximize its full potential. Without imagination, that would be no radical technology disruptions or business revolution. IT is the great tools in trying to understand if what's imagined can be achieved. And IT also plays a significant role to glue all critical pieces of innovation puzzles properly. Today’s IT leaders and professionals are not just engineering nerds or computer geeks, but artistic technologists or scientific artists. They can fluently mix the art and science to innovate the products or services and delight customers via intuitive interfaces. As Picasso famously said, "All children are artists. The problem is how to remain an artist once she/he grows up." Many talented people appear to gradually lose their curiosity because of the busy routine, and they also lost the courage because they are aware of the consequence when the education or the society favors conventional wisdom and mediocrity. Still, IT is nothing about the status quo due to the disruptive nature of technology, and knowledge life cycle is significantly shortened due to the exponential growth of information. IT folks shouldn’t become complacent or arrogant because of what they have known. In fact, when you truly become knowledgeable, then you become more humble and aware of what you do not know and that should ideally fuel the imagination. IT is in the unique position to observe broadly and explore deeply about their business and the related digital ecosystem, and thus, have more opportunities to come out innovative solutions to the existing or emergent business problems, and information potential directly impacts the business’s potential of organizations.

Digital IT presents multi-dimensional versatility: Traditional IT organizations focuses on keeping the business lights on and improving efficiency. With lightweight digital technologies, IT organizations are shifting from a monolithic back office support function to the mosaic and versatile digital engine. The digital IT paints an excellent picture of the business interaction and independence of the expanded digital ecosystem. And the common element of a proactive IT is business engagement - whatever and wherever the business needs are. IT can drive the business growth via abstracting the business information to the invaluable business insight; IT can catalyze changes via “sensing” the need for Change Management. IT can feel the business “blue,” so it helps to manage business risks intelligently. IT can also instill the passion to engage internal users as well as delight end customers via intuitive products or services. An innovative IT organization has the ability to inspire and motivate, and help people and the company as a whole overcome their challenges.

Reimagine IT is also about keeping things simple, and keeping IT digital fit: “Keep it Simple” should always be one of the guiding principles and management cultures for running IT to achieve IT excellence. IT should consolidate, modernize, integrate, innovate, and optimize its processes, products, services, and capabilities all the time. Reimagine IT includes the process to look for the impact of removing some of the complication or unnecessary complexity by simplification or optimization. There are differentiated IT enabled digital capabilities with needed complexities such as design complexity that competitors cannot imitate easily; or the powerful digital platforms with the collaboration complexity that makes people proactively communicate or innovate. IT becomes nimbler and faster to adapt to changes. There are more and more IT driven business solutions using lego-like approach - integrate multiple and different specialized commercial software components into customer-tailored solutions with speed. IT is an integral part of the business, and IT is moving from struggling with business-IT alignment to thriving via IT-customer alignment, because innovation happens at the intersection of customers and technologies.  

To put simply, IT can no longer just provide the commoditized services, or run as a cost center. IT has to move up its maturity from functioning to firm to delight. IT leaders have to reimagine IT on how to unleash the full potential of running a digital organization. In today’s digital dynamic and technical environments where IT is being used more and more around the globe for revenue generating initiatives and the business is becoming IT, IT has to reinvent itself to get digital ready.






Wednesday, June 21, 2017

The New Book "Performance Master - Take a Holistic Approach to Unlock Digital Performance" Introduction

Enterprise Performance Management is a multidisciplinary management discipline to run numbers in context, leverage data to tell stories and keep digital fit for the long term.

The purpose of the book “Performance Master: Take a Holistic Approach to Unlock Digital Performance “is to provide an in-depth understanding and share unique insight about how to take a holistic approach to measuring and managing enterprise digital performance. Without measurements, it can be hard to tell whether attempted improvements achieve the expected results or not. It's fair to say that any organization didn't have a systematic approach to performance assessment and measurement at both strategic and operational level has a giant blind spot that is impairing their performance. A well-designed performance management system is a necessary foundation for continuous improvement.

  • Chapter 1 Digital Performance Assessment: Making an objective assessment is the first step in performance management. Corporate Performance Management is a management control from the strategy till shop floor. Managing performance means evaluating performance and understanding results, setting metrics, fixing plans, and making decisions to ensure it happens. This also means:
-Translating the business strategy into operational terms.
-Aligning the organization to create synergies.
-Making strategy everyone’s everyday job and a continual process.
-Mobilizing change through executive leadership anticipation, monitoring results and act.

  • Chapter 2 Digital Performance Indicator: "If you can't measure, you can't manage," the legendary management guru Peter Drucker once asserted. He was right, just not right enough. The fact of the matter is that it's a lot easier to get metrics wrong than right, and the damage caused from getting them wrong usually exceeds the potential benefit from getting them right. Choosing the right KPIs is crucial. The challenge is that people have their own take on KPIs. KPIs must be aligned with the corporate goals and objectives, but should also be directly relevant to the activities that businesses are attempting to manage. Selecting the right measure and measuring it right are both art and science. KPIs influence management behavior as well as business culture, and poorly designed or implemented KPIs can be very damaging the "culture of the team" and the quality of business execution.

  • Chapter 3: Digital Performance Dots Connection: Enterprise Performance Management is an integration of multiple management disciplines and the development of a set of performance management practices. The business management is, in essence, the strategy management and performance management continuum. Hyper-connectivity is one of the most critical digital characteristics. It is important to connect the dots between performance management and other management disciplines, to understand that digital business development & transformation is the paradigm shift which takes a multidisciplinary approach. In modern socially responsible companies, it isn't just about WHAT (performance result) you have achieved, but also about WHY (the strategic vision) and HOW (the decision-action scenario) you have achieved it.

  • Chapter 4 Digital Performance Scoreboard and Dashboard: The balanced scorecard is the balanced scorecard model offers a way for a corporation to gain a wider perspective on its strategic decisions by considering the impact on finances, customers, internal processes and employee satisfaction. A business dashboard is "an easy to read, often single page, real-time user interface, showing a graphical presentation of the current status (snapshot) and historical trends of an organization’s key performance indicators to enable instantaneous and informed decisions to be made at a glance.

  • Chapter 5 Digital Performance Management Maturity: Digital businesses become overwhelmingly complex to run, different organizations take different approaches to pursue high-performance results. Enterprise Performance Management is more as decision management. Enterprise Performance Management is the integration of multiple methods to make better decisions and implement the strategy seamlessly. The company’s performance is directly related to the decisions people make every day—from executives to the frontline, across functional areas and regions. Performance management facilitates the flow of the right information to the right people at the right time to get answers to the right questions, to help and coordinate your strategy, tactics, and risks.



Enterprise Performance Management is a multidisciplinary management discipline to run numbers in context, leverage data to tell stories, and get results related to business goals, and keep the business digital fit for the long term.



The Digital Board’s Composition & Leadership Perspective

The high performing Board shows the ability and openness to "question itself and its decisions/ discussions."
  
Organizations today have to live up with the business dynamic which is uncertain, ambiguous, complex and flux. The overwhelming growth of information is permeating every corner of the business, and rapid changes are touching every activity, function, business, and industry.  The matter of fact is that the changes sweeping the business are hugely disruptive and there is nowhere to hide. The board of directors as the de facto guardians of modern organizations has an important role to play in steering the organization toward the uncharted water and blurring business territories because they oversee strategy management and set the policy for driving changes. With more and more organizations are on the journey of the digital transformation, from the board composition perspective, which challenges do you face, when and how do you tackle the issue of change in the boardroom? How should BoDs get an in-depth understanding of their role and responsibility while the business change is accelerated across the business scope and knowledge life cycle is shortened significantly? How to build high-performance boards for today and the future? And what are important perspectives to build a digital savvy board?

The boardroom composition will directly impact on how they lead and which tone will they set for the entire organization to follow: While there are many components of leadership, one of the most important ones is the ability to adapt, model and influence change. Contemporary boards play the crucial directorial role in business strategy oversight, performance monitoring, business advising and policy setting. Not only do today’s BoDs need to have sufficient knowledge to understand the digital business ecosystem, but also they should have the collective insight to present today and foresee the future. The high-performance board makes the disproportional impact on running a high-performance business. The high performing Board shows the ability and openness to "question itself and its decisions/ discussions." It’s not talking about "second guessing" but the ability to validate and double back on decisions past and present discussions. This is basically getting the "oversight" closer to the forefront (if not within) of every board process. They frequently brainstorm issues such as board composition, structure, and leadership - take the periodic risk assessment and well-tuned succession plans. They have to continue removing the barriers, filling the gaps for improving the performance effortlessly. At the digital age, status quo only cannot make one a real leader, if they don’t have a purpose of leading or lack of insight or vision upon the directions, lack of in-depth understanding and expertise to connect the mind and touch the heart to improve leadership empathy.

Leadership is all about change and directorship is about steering the business toward the right direction: Digital transformation is in every forward-thinking company’s top agenda; innovation is the light every organization is pursuing, and digitization becomes the new normal of business expansion. All of these bring the significant opportunities and responsibilities for the new breed of digital BoDs. Because the board in a high-level directorship position plays a crucial role in strategy oversight, business advising, and monitoring, as well as setting key digital tones in leadership development and talent management. High-performing boards set goals for their own performance and regularly evaluate how they are performing as the board.  An effective board enables and directs management towards good outcomes, and ensure the business is on the right track to reach well-defined business goals. If the results are lacking then the board effectiveness must be questioned.

BoDs are also the mastermind behind digital transformation: The contemporary corporate board as the directorial role plays a significant role in overseeing strategy, advising corporate executives and monitoring business performance. The BoDs should also walk the talk to digitize the boardroom with strategic imperatives because often the digital tone is set at the top and echo spirally to all levels of the organization. The differentiator between a digital leader and a laggard is not about the title and authority, more about the mindsets and attitude. Digital attitudes are about being experimental and persistent. Hence, digital BoDs today also need to show intellectual curiosity, creativity, learning agility, and risk tolerance, etc. One of the significant tasks for BoDs, leaders, and managers is to make either strategic or operational decision. Decision effectiveness is often compromised by group thinking (group polarization means that a group of people can make a more extreme decision than an individual.) which is often caused by the homogeneous team setting with cognitive gaps. From the board composition and leadership perspective, bridging cognitive gaps and sharing different perspectives becomes a strategic imperative for improving directorship effectiveness and leadership maturity.

The question is whether there are enough people with the proficient skills and expertise to do the job in the heat of today’s boardroom facing business uncertainty, rapid changes, continuous digital disruptions, and unprecedented competitions. While directors bring many competencies to the table, they should keep learning agile and master digital fluency, adapting to the increasing speed of changes and the exponential growth of information.  Digital BoDs have to understand what's required and how as a high-level basis of going digital mean to the business, so they can make a significant impact on accelerating digital transformation by making insightful inquiries and taking a step-wise approach with the steadfast speed.

The New Book “Digital Capability - Building the Lego-Like Capability into Business Competency” Quote Collection III

The organization's long-term success is based on a set of differentiated capabilities and its core competency.

The purpose of the book “Digital Capability - Building Lego-Like Capability into Business Competency “ is to provide an insightful understanding of assessing, developing, and managing organizational capabilities in a structural way. The organization’s competency is based on a set of cohesive capabilities and how fast and effective they can be built upon. The high-mature organizational capability is the digital business differentiator, to keep the business unique, competitive, and innovative, to improve business maturity significantly. The capability views enable dot connections and help the business identify “actuality, capability, and potentiality,” build Lego-like capabilities into core business competency and improve the success rate of strategy execution and overall business maturity.

46 The high-mature organizational capability is the digital business differentiator, to keep the business unique, competitive, innovative, and improve the overall business maturity significantly.

47 High mature digital organizations have high-mature digital capabilities not only to implement the digital strategy but also to drive enterprise-wide transformation.

48 Dynamic capability is the ability to reconfigure your organization in the way that has the effect of increasing its variety.

49 It is important to strengthen the weakest link, to ensure all important business elements integrated and knitted into ongoing organizational capabilities and unique business competency.

50 The business capability coherence is the decisive factor for the success of strategy implementation.

51 The digital capability is synthetic in nature, embedding agility in processes and focusing on building the long-term business competency.

52 A core competency is a combination and harmonization of multiple capabilities with a focus.

53 You must be careful in establishing KPIs, as the old saying goes, you get what you measure.

54 The emergence of potential opportunities for exploiting digitalization is likely to follow a nonlinear pattern as the pervasiveness of an organization’s digitization journey increases.

55 Business capabilities are path-dependent.

56 Organizations have to stretch out in every business dimension for driving the full-fledged digital transformation based on the set of digital capabilities and its unique business competency.






Explore a Unique Path to Innovate IT

Every forward-thinking IT organization should explore a unique path to innovate and digitize, proactively push ideas to achieve high performance business results.

Many companies are at the tipping point for the digital transformation journey, more and more businesses empower their IT to lead changes and catalyze business growth. Due to the overwhelming growth of information and disruptive nature of technologies, IT is at the crossroad, either ride the learning curve and explore a unique path to build differentiated competency, or just keep the lights on only, react to the business’s requests and become irrelevant. Some high-performing IT organizations have moved up its maturity to become the innovation hub and game changer in their companies, how can they make it?

Closer to the end customers: Digital is the age of the customer, being a customer-centric business is in every forward-thinking organization’s top executive agenda. IT has two sets of customers: The internal business customers as well as the end customers of the companies. To reinvent its image as the business catalyzer, IT needs to be closer to the end customers and do more with innovation. Innovation happens at the intersection of customers and technologies. Thus, customers become an important link in the innovation process. The end customer (including prospects) should be studied and observed, and delighting customers can become the step stone to improve IT maturity. Corporate IT plays a significant role in digitizing every touch point of customer experience and building key business capabilities. Remember innovation must prove its value in the market. Customers must be willing to pay for this, be it a product, process or service innovation. IT is at the unique position to oversee the underlying business functions and processes. Hence, it has better advantages to make deep observations and have an empathetic understanding of customers. This involves gaining a deep knowledge of the motivational construct of the customer, in order that IT can become "anticipatory" of what the customer will likely "want next," and apply a more inductive approach as to what the customer wants to accomplish “next.” It is important to think when talking about innovation, not purely about technological advancements or breakthrough innovations, but also about different propositions, approaches to a problem or new interpretations, with customers as the center of innovations.

Communication, collaboration, and co-creation: Traditional IT organizations are often perceived as a back office function to keep the lights on with a controller’s mentality; to innovate IT and accelerate changes, it is a fundamental initiative to improve the important IT-business relationship that is essential to the business’s long-term success. It means having IT and business collaborate as equal partners to harness communication, enforce collaboration, and co-create innovative solutions, so that, organizations, people,  strategies, etc, work in harmony, such that business initiatives, especially those focused on leveraging IT to increase revenues are successful. The crux of the question is what an IT leader must plan for, articulate and, of course, execute to match the demands of the business and customers; set and communicate the forward-looking vision, and leverage IT funding to innovating for the business's long term prosperity and success.

 Integrate the art and science of digital innovation: Being able to become innovative or close is being able to think, and create new things based on the business or the customer’s needs, true knowledge is the optimal solution. Innovation is to have a new perspective on things. Innovation follows basic rules, which are adapted depending on the company's situation and ambition. Running digital IT today needs to explore the art of possible and the science of engineering discipline. The challenge is getting out from the daily burden, and spend more resources and time on innovation-related activities. Once IT is unburdened from the daily routine of flipping the lights and break/fix; it’s almost natural that the staff turn into the innovation co-creators. That requires creativity and some open and innovative leadership. Building an environment where the only thing you get fired for is not asking hard questions or explore the better way to do things. Often the most disruptive person is the one you want to harness and reward. Keep triggering creativity and let capabilities shine. Build up a positive emotional climate, foster cross-functional communication, and advocate changes relentlessly.

When everyone just follows the industrial best practices to run IT for “keeping the lights on,” there is no way IT can stand out. Break the old rules when it is necessary, experiment and develop the next practices to innovate IT. Both fast growing businesses and well-established organizations set top priorities to build new capabilities in which IT is a key enabler. Every forward-thinking IT organization should explore a unique path to innovate and digitize, proactively push ideas on how to leverage powerful digital technologies to drive revenue growth, increase business productivity, flexibility, and performance.




Tuesday, June 20, 2017

The New Book "Performance Master - Take a Holistic Approach to Unlock Digital Performance" Preview

A well-designed performance management system is a necessary foundation for continuous improvement.

Corporate Performance Management is about managing and monitoring the corporate performance via the well-defined set of performance indicators. Corporate performance management is not just about managing numbers with metrics, but the number with context. The various activities are needed to manage performance— strategic and operational plans, metrics, day-to-day decisions. So, Enterprise Performance Management is critical, because new competitive challenges and active market changes underscore the strategic imperative of managing performance more than ever. But what’s exactly corporate performance management regarding for, and what’s it related to other key components of corporate management such as strategic management, risk management, information management, decision management, or talent management? Enterprise Performance Management methods include strategy maps, scorecards, customer profitability analysis using activity-based costing principles, customer intelligence, driver-based budgeting / rolling financial forecasts, process management, and quality management. Enterprise Performance Management integrates them as a large umbrella.

The purpose of the book “Performance Master: Take a Holistic Approach to Unlock Digital Performance “is to provide an in-depth understanding and share unique insight about how to take a holistic approach to measuring and managing enterprise digital performance. Without measurements, it can be hard to tell whether attempted improvements achieve the expected results or not. It's fair to say that any organization didn't have a systematic approach to performance assessment and measurement at both strategic and operational level has a giant blind spot that is impairing their performance. A well-designed performance management system is a necessary foundation for continuous improvement. So, the logical scenario to manage performance includes the following steps:

  • Make a fair assessment and get objective perspectives on what you are trying to manage. Understanding what’s blocking achievements, targets and performance is paramount.

  • Select the right set of indicators of organizational improvement, innovation, and investment, really focus on key metrics that correlate to better business outcomes and measure them effectively.

  • Connect the multidisciplinary management dots to tell the full story with the business context, as performance management is not an isolated management discipline.

  • Design management scoreboards to assess the business performance progress to strategic goals whereas build dashboards to assess the organizational performance to operational goals.

  • Act on what the performance indicators are telling you is vital to sustaining business results and improving the overall organizational maturity. \



  • Metaphorically, Enterprise Performance Management (EPM) is the tree, Strategic/ Operations/Risk Management are the main branches: Strategic Management, Operations Management, Risk Management are all part of good EPM, in essence. A company benefits most when it executes Enterprise Performance Management (EPM) and Enterprise Risk Management (ERM) in a complementary fashion, as two elements are both critical for achieving the vision and mission of the company. Under EPM the management looks at what one wants to take place. The management team translates the company vision and mission into a strategy with objectives; then translates the strategy into operational plans to achieve the strategic objectives; then executes these plans and monitors actual performance, with the classic PDCA cycle (plan-do-check-act). Under Enterprise Risk Management (ERM), the management then looks at the things one essentially does not want to happen. The things that would prevent the execution of the strategy or operational plans from achieving the stated aims or that would even make the strategy and operational plans completely obsolete.



    PerformanceScoreboard.png
  • Metaphorically, if the enterprise is a vehicle, Enterprise Performance Management is like the gas pedal with speed scoreboard: Enterprise Risk Management is like brake, and governance is like a steering wheel, to keep the business in the right direction; while ‘EPM's "strategy map" component could be the GPS for direction setting. The motor might be the organization's assets and capacity (including its workforce). Predictive analytics might be what is seen through the windshield. The purpose of all such management disciplines and practices is to ensure the enterprise vehicle running at an optimal speed in the right direction.

Enterprise Performance Management is a multidisciplinary management discipline to run numbers in context, leverage data to tell stories, and get results related to business goals, and keep the business digital fit for the long term.

The "Performance Master" Book Introduction Slideshare