In contemporary business management, performance has always been given the number one priority. According to Baron and Armstrong (2004), performance management refers to as taking action as a response to real-time performances to better the outcome of different business operations. Therefore, a performance management framework is a strategic structure of actions aimed at achieving an improved outcome of business practices. The framework is what the firm requires to enhance its performance in the production of limousines. First, the framework will allow the client to prioritize the most important activities within the resources available. Apart from ensuring the firm provides value for money products, the framework also enables the firm to establish and hence, rectify poor performances while still early. Therefore, the overall result is an increment in the staff motivation, which, on the other hand, leads to commitment and increased productivity regarding both quality and quantity (Camillus, 2007). The firm enjoys customer satisfaction and loyalty upon meeting the market demands. In the long run, high performance is achieved which translates to an expanded market coverage and increased sales. This paper, therefore, presents a performance management framework for a client who owns a limousine company.
The Framework
The performance management framework involves three major stages: PLAN, DO, and REVIEW. However, newer models of performance management have included REVISE as a fourth stage although the original model has it under the last stage. The framework is in the form of a cycle where the activities repeat themselves to enhance performance on a periodic basis. The timeframe for the performance management framework cycle varies across different business contexts. However, the most important factor is to follow the framework appropriately and repeat it whenever necessary. The figure below represents the PMF cycle.
PLAN
The first step at this stage involves the client identifying the firm’s vision and strategic direction. A strategic direction refers to the business focus of the company. Furthermore, the client should identify the major priorities within the plan by reflecting across the business context and the decisions on service delivery. Future priorities should also be identified at this stage. Planning also involves taking into account all the commitments to work that are available in the company. Furthermore, the client prepares the firm's fiscal plans and also demonstrates the delivery mechanisms for the priorities related to the corporate strategy. Specific actions to assess the progress of these delivery activities constitute another aspect that should be identified at this stage. This step is the first towards achieving the firm’s corporate objectives and creating a robust room for risk management.
The second step at this stage is the determination of the firm engages its performance enhancement. Significantly, the effective achievement of a firm’s objectives is determined by efficiency in leadership and proper engagement. At this step, the client should take views and opinions especially from the employees and other stakeholders to determine future direction. Dialogue with key stakeholders is a major consideration that the client has to ensure. The planning process can never be complete if feedback from the stakeholder including the entire community is not incorporated. Notably, at this stage, no opportunity has to left to chance.
DO
This stage is the action phase of the framework. At this stage performance management is all about accomplishing the activities identified at the planning stage. The activities are broken down into directorate, corporate and service/individual/group activities. The client should ensure that proper systems and processes are established to facilitate the achievement of the plans. The effective utility of the systems and processes should also be guaranteed. The implementation of the firm’s plans, actions and priorities is normally a very crucial stage (Baron and Armstrong, 2004). There are several methods that can be used to manage performance. The client could utilize the Service Planning Database or the Performance Management System to manage performance in regards to the firm’s corporate plan.
Individual personal performance could be managed by the utility of benchmarking tools and service standards established in the industry and by the firm. Most importantly, the next step in this phase involves the identification of who delivers the plan (PHF, 2002). The client could use the People Resource Plan to manage both the current and future workforce requirements. The client’s Limousine Company requires quite a unique skill-set that goes hand in hand with corresponding talent and creativity. As such obtaining as well as optimizing human capital is a key consideration (Government of Canada, 2009). The tools identified above should be sufficient enough to enable the client to establish any gaps in the skill-set requirement and thus, create room for the obtaining of qualified, skilled, talented, and competent workers.
REVIEW
The review represents the stage at which feedback is provided. The stage involves the client assessing whether or not the firm is on the right track to accomplish the objectives set as well as the planned activities. Rather than monitoring, the stage is also action based. The client evaluates how the targets set are being met and if any corrective actions should be taken. Furthermore, Camillus, (2007) suggest that from the feedback, success should be celebrated. Self-assessment is also crucial at this stage for all the employees of the firm. Given that this assessment is holistic in nature, it sometimes takes a long period. The client should, at all times, base the performance assessment on the customers. As noted earlier, the PMF equation has customer satisfaction and loyalty at the end. This factor implies that the client should utilize the performance management tools identified earlier including benchmarking and results analysis to determine areas where the firm has accomplished the predetermined objectives (PHF, 2002). Both internal and external results should be included in the analysis to establish a holistic perception of the firm's performance. Omission of either would lead to an incorrect view of the firm’s performance status hence making wrong remedial measures.
Notably, after the establishment of feedback and appropriate areas that require improvement, it is vital for the client to communicate the feedback to the stakeholders. The feedback provision could be made through a preparation of an annual report or a performance report published for that matter. As it has been noted, the views, voice and opinions of the stakeholders are of great value to the firm’s decisions and corporate strategy. The last step of this phase is the revision stage. Depending on the stakeholder’s take on the feedback, a proactive approach is taken towards adopting corrective measures and identifying new opportunities for improvement. The revision stage also involves the identification of future areas of corporate strategy and major improvement action plans that will be considered in the next cycle of performance management.
References
Baron, A. & Armstrong, M., (2004). Managing Performance: Performance Management in Action. New York: Chartered Institute of Personnel and development
Camillus, C. J., (2007). Strategic Planning and Management Control: Systems of Survival and Success. California: Lexington Books.
Government of Canada, (2009). Supporting Effective Evaluations: A Guide to Developing Performance Measurement Strategies. Retrieved on 4th March 2016 from www.tbs-sct.gc.ca/hgw-cgf/oversight-surveillance/ae-ve/cee/dpms-esmr/dpms-esmrtb-eng.asp
Public Health Foundation, (2002). About the Performance Management System Framework. Retrieved on 4th March 2016 from www.phf.org/focusareas/performnacemanagement/tookit/Pages/PM-toolkit-about-the-performance-management-framework.aspx
