Article: Measuring business excellence using performance evaluations

Performance Management

Measuring business excellence using performance evaluations

Business today need to be aware of their performance levels to understand where they are headed. Using a holistic organizational performance evaluation helps companies factor in the different stakeholders and parameters to create a better understanding of where it stands.
Measuring business excellence using performance evaluations

Globalization is the cornerstone of the present economic world. While cultural, political and socio-economic differences make management challenges continuously evolve and innovate, there is a growing demand for organizations to be nimble and adapt to challenges on a global scale to ensure its success and sustainability. Every organization, big or small, must build a business excellence framework as a roadmap for their business distinction journey. Organizational Performance Evaluation assesses the different components of the framework for a successful business. 

Organizational performance involves setting goals and implementing those goals for the organization to create a value proposition.   Both internal and external stakeholders are responsible for increasing an organization's value. Just as we measure financial performance every year, it is also mandatory to measure some of the nonfinancial components which actually help build a successful organization. 

These stakeholders are the most important components which include employees, the leadership team, managers, executives and support staff along with the external stakeholders including customers, vendors, potential employees, investors, industry bodies, competitors and peers assess an organization’s performance.

Organizational Performance evaluation is done through several tools or approaches. The components to be assessed include Leadership, Strategy, and Planning, Technology, People, Customer Centricity, Process Management, Innovation and Company Reputation. 

Leadership

This is one of the most important components that defines an organization’s vision and mission. Leaders must also communicate and motivate the workforce to internalize the vision and mission and this is usually done by encouraging inclusive development, learning, and creativity. As the forerunners of an organization, a good leader should set a purpose that defines the aspirations of the organization and if need be, must be able to reorganize or restructure the existing set-up to achieve those aspirations. 

Strategy and Planning

Organization strategy has to be aligned as per organization's vision and mission in line with the current and future market conditions.  Organizations will have to constantly evaluate their implemented action items which will help the organization to analyze and measure current industry trends.

People

We live in a time where companies of all size – start-ups, mid-tier firms, and larger organizations are competing with each other to get the right talent from the common talent pool to derive value for their businesses. It’s time we acknowledge that any business’s operations and success rely on this talent i.e. skill sets, attitude, enthusiasm and abilities. Organizations need to understand that an engaged workforce drives better customer loyalty and subsequently, better revenues. The reason for this is engaged employees are highly committed to their organization. They proactively contribute to the organization’s success. 

Customer Centricity

As we live in a more globally networked market survival becomes an important element to be addressed. In a competitive environment, everyone wants to be unique therefore it is highly imperative that focused attention is provided to the Customers. Understanding the pulse of the customer’s satisfaction levels with the product or service offered by the organizations is one of the best and most important tools to evaluate organizational performance.

Process Management

Process management has to be simple and clear, well-defined workflow and process documentation can go a long way. Process Management ensures that the organization’s internal and external systems are designed in an effective way that adds value to its customers and its employees to achieve organizational success and sustainability. 

Innovation

Organizations need to constantly evolve and innovate, ushering developmental growth to the organization’s products, services, technologies, processes and management practices. Primarily, these recurring improvements and innovations are aimed at adding value to stakeholders while also building competency levels of the employees. 

Company's Reputation

Finally, a company’s success also depends largely on the reputation of the organization among its various stakeholders. Company reputation is a ‘soft’ theory. Essentially, company reputation is determined by how an organization is perceived by its internal and external stakeholders. Usually, this is derived from its past actions and potential future behavior and is built based on personal experience or word of mouth. Social media plays a major role today and acts as an effective communication enabler that benefits an organization positive manner by inculcating innovation and collaboration. 

Technology

One of the key collaborators that help in assessing the aforementioned components is technology. It plays a key role in organizational efficiency and performance evaluation. Technology can help in assessing employee satisfaction, evaluate their performance, provide platforms for continuous learning and communication, analyze and etc. As an organization scales up, a robust technology adds value and supports business growth and development. 

Why use Organizational Performance Evaluation as a Tool?

To define organizational success, we must review employee morale, integrity, workplace loyalty, right pay and effective delivery. Employees play a pivotal role in the success of organizational performance and therefore it is vital to make sure that they are provided with high job satisfaction. Interestingly, these components generate data that indefinitely aid organizations growth. Company strategy and thought leadership cannot be outsourced therefore it is the responsibility of the leadership team to take initiatives that contribute to achieving the organization's goal to be able to be successful. 

In conclusion, organizational evaluation is an integral factor to any organization that would want to rise and evolve every day to be better and successful.

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Topics: Performance Management

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