The Performance Management System
One of the most popular and effective methods for review long-known to larger firms and organizations in establishing a performance management system (PMS). It is essentially a set of activities, integrated into the entire business model, that ensure that goals are being met effectively and efficiently. Many organizations measure their impact and operational effectiveness in prominent and defined ways: profit, revenue and business growth for all stakeholders. However, by doing so, they can lose vital opportunities for improving their efficiency and impact and learn valuable lessons day by day.
Having a professional PMS in place enables organizations to:
- Select what to measure to get a clear picture of progress towards the mission and goals.
- Learn internally about its strengths and opportunities for improvement, by analyzing performance data.
- Create a learning and continuous improvement culture that involves management, board, and staff in making strategic, data-driven decisions, and ultimately accelerates progress toward enduring impact.
- Communicate externally the performance and impact achieved, keeping collaborators, supporters, partners and regulators informed about its progress.
- Develop report cards and impact to external stakeholders.
- Access new and returning investments by building funders’ confidence based on data-based evidence.