Performance Management: AirProcess Explains How to Do It

Are you looking to understand performance management and its importance for your company's prosperity?

Then you're in the right place — AirProcess tells you everything!

In this article, we will explore the different facets of performance management.

To do this, we will follow the QQOQCP method to break this concept down into several elements :

1️⃣ What: what is performance management? We untangle the threads of this complex concept.

2️⃣ Who: who are the key players in this process? We will emphasize the importance of each member of the company being involved.

3️⃣ Where: where should performance management be applied? We will discuss its deployment across all levels of the organization.

4️⃣ When: when should monitoring be carried out? We will address the frequency and optimal timing for maximum effectiveness.

5️⃣ How: how to choose the right tools and methods? We will provide concrete avenues to equip yourself properly.

6️⃣ Why: why is performance management so important? We will reveal the long-term benefits for your company.

By following this article, you will not only gain a deep understanding of performance management, but you will also be able to implement effective strategies adapted to your company.

Now, if the program suits you, let’s discover the first step together: understanding the concept of performance management.

1) What: understanding the concept of performance management

a) The process

Performance management is about skillfully managing your processes, indicators and tools.

It’s like holding the helm of a ship, ensuring that every maneuver leads you toward constant improvement of your company.

To better understand, imagine yourself at the controls of this ship, analyzing and measuring your organization’s course with precision.

b) Applying the principle at the heart of the company

It’s not just the big dashboard that matters!

Each operational unit, each department, and even each individual plays a key role.

And, in an ideal world, every team member would be a pilot in their own right, aligning with overall objectives while optimizing their sphere of influence.

c) The three pillars

1️⃣ Defining performance objectives: this is the heading to follow, the destination of your journey.

Performance objectives are the stars that guide your company, determining the direction and speed of your progress.

2️⃣ Identifying Key Performance Indicators (KPIs): KPIs are your navigation instruments.

They allow you to monitor whether you are on the right track and to adjust your trajectory in real time.

3️⃣ Monitoring strategy and continuous improvement: this is not a one-off trip, but a continuous exploration.

Setting up a monitoring strategy is like having an up-to-date map, enabling you to navigate through the market’s changing challenges and always aim for excellence.

d) Strategic decisions are at the heart of the approach

At the center of this system is informed decision-making.

With a clear vision and a relevant analysis of data, strategic decisions become more than a mere choice: they are the result of a deep understanding of current performance and improvement potential.

e) Concrete example of application

Take the example of an e-commerce company.

It could use KPIs such as conversion rate, average order value, or customer retention rate.

By analyzing these indicators, it can adjust its marketing strategies, optimize inventory, and improve the customer experience, thus steering its performance to new heights.

Therefore, we can conclude that performance management is not a luxury, but a necessity.

By putting in place a robust and adaptive system, you ensure not only your company’s current success but also its ability to navigate and thrive in an uncertain future.

2) Who: involve all company stakeholders

a) Collective commitment to performance

In fact, performance management in a company is not just the concern of leaders.

It engages every member of the organization, from executives to employees, including managers and various stakeholders.

The idea is simple: each individual, at their level, is a strong link.

b) Each person’s role in performance optimization

Imagine an orchestra where every musician, regardless of role, contributes to the overall harmony.

Similarly, in a company, every collaborator plays a major role in refining performance.

It means understanding and embracing the importance of measuring, monitoring, and optimizing one’s results in line with the company’s missions and objectives.

c) Managers: the conductors of performance management

Managers act like conductors, bringing their teams together around the objectives.

Their mission is to encourage, guide, and support each member in their journey.

It is thanks to their leadership that individual objectives align harmoniously with the company’s strategic objectives.

d) Practical application: team performance

Take the example of a customer service department in a large company.

Here, managers can set up key performance indicators (KPIs) such as customer response time, first contact resolution rate, or customer satisfaction.

By monitoring these indicators, each team member can self-evaluate, improve, and contribute to collective performance.

e) A shared performance culture

Ultimately, promoting a shared performance culture is essential.

It requires clear communication of objectives, an understanding of everyone’s roles, and a common commitment to continuous improvement.

By actively involving all stakeholders, performance management becomes a real lever for the company’s success.

3) Where: deploy performance management across all levels of the organization

a) A holistic approach to management

Performance management is not limited to a specific level of the organization.

To be truly effective, it must permeate all levels, from the top of the hierarchy to individual operations.

It is a global strategy aimed at aligning all company actions toward common objectives.

b) Global management for the executive level

At the executive level, the integration of dashboards is essential.

These tools enable precise monitoring of key indicators such as revenue, profitability, or market share.

They offer an overall view, allowing the company to be guided by reliable and up-to-date data.

c) Management at the level of departments and operational units

Each operational unit or department should have its own performance objectives.

This could include parameters such as productivity, quality, innovation, or customer satisfaction.

Setting specific objectives for each segment ensures better focus and strategic alignment across the company.

e) How to proceed in a sales department?

Take the example of a sales department.

Here, dashboards could track indicators such as lead conversion rate, sales volume, or customer retention.

These metrics allow salespeople to focus on the levers that boost their performance, enabling them to align their actions with the company’s strategic objectives.

f) Monitoring individual performance

Finally, it can be a good idea to implement individual performance monitoring.

This involves regular reviews and personalized development plans.

This way, each collaborator can understand their impact on the company’s performance and commit to continuous improvement.

g) A high-performing synergy

Deploying performance management across all levels of the organization creates synergy.

It allows each individual to understand their contribution to overall success and ensures that all parts of the company move in the same direction.

By aligning efforts at all levels, the company’s true performance potential can be reached.

4) When: implement regular and adaptable monitoring

a) The importance of regular monitoring

Monitoring performance management is a bit like a company’s heartbeat: it must be regular and constant to ensure optimal organizational health.

This monitoring must be carried out with rigor and adaptability to respond effectively to the company’s needs.

b) Adapting to organizational cycles

It is essential to define monitoring cycles adapted to each level of the organization.

Whether:

• Monthly for quick checks,
• Quarterly for more in-depth analyses,
• Or annually, for an overall assessment, the monitoring rhythm should match the company’s dynamics.

This allows for close attention to performance while adjusting to the natural rhythms of activity.

c) Monitoring in a sales department

For example, in a sales department a monthly review could focus on indicators such as sales volume or conversion rate, while the quarterly analysis could include evaluation of marketing campaigns and commercial strategies.

The annual review would then examine trends and adjust strategies for the following year.

d) Adaptability: the key to monitoring

Adaptability is essential in monitoring performance management.

The company must be ready to adjust its indicators, objectives and actions according to market fluctuations, strategic changes, or the detection of anomalies.

This flexibility not only allows effective reaction to unforeseen events but also enables the exploitation of new opportunities.

5) How: choose the right tools and methods

a) For operational management: the power of dashboards

For effective management of performance, adopting dashboards is essential.

These dashboards should be designed to offer a clear and concise view of performance, both at the global level and for each operational unit.

Their simplicity and clarity are essential to ensure effective monitoring of indicators of performance.

Application example: in a manufacturing company, a dashboard can display ratios such as production yield, delivery times, or customer satisfaction rate, thus allowing measurement and optimization of operational performance.

b) Measuring and analyzing performance: analytics serving management

Data analysis plays a pivotal role in identifying performance gaps and implementing relevant corrective actions.

Techniques such as variance analysis, factor analysis, or cost analysis are effective means to break down and understand performance.

This helps highlight the key factors influencing performance.

c) Concrete example

An e-commerce company can use Google Analytics to measure metrics such as bounce rate, unique visitors, and conversion rate, allowing it to manage commercial and digital performance in a more informed way.

d) Anticipation and preparation: workforce planning

Workforce planning is a forward-looking approach that aligns skills needs with the set performance objectives.

This often includes conducting individual interviews and training plans, ensuring that available skills match operational and strategic requirements.

Practical application: in a digital transformation context, a company may consider training managers in big data and analytics, thereby strengthening their ability to analyze and manage performance via relevant indicators.

e) Technology and information systems: a pillar of performance management

Effective information systems, such as Business Intelligence tools or CRM solutions, are key elements for effective performance management.

These systems must be performant, constantly updated, and secure to effectively support performance measurement and control.

Example: Implementing a CRM can allow tracking of indicators such as average sales cycle, number of new customers, or average basket, enabling a better understanding and optimization of commercial performance.

Integrating these tools and methods into the performance management process is not only an operational asset but also a strategic lever.

They facilitate decision-making, enable proactive performance management, and contribute to achieving set objectives.

Ultimately, choosing the right tools and applying them wisely is a decisive step to effectively manage performance in a company.

6) Why: optimize results and ensure business continuity

a) Strategic management: a lever for company prosperity

Performance management proves to be a major asset in the face of economic challenges.

Being at the heart of strategic management, this process enables companies to remain competitive and agile in a complex environment.

b) Making informed decisions

The judicious use of analytics tools, like Google Analytics, and the exploitation of relevant ratios allow decision-makers to rely on reliable data.

These data illuminate their choices and promote informed decisions aligned with market realities and set objectives.

c) Identifying and correcting failures

By measuring performance rigorously, companies are able to quickly detect any operational failure.

Thus, BPM systems like AirProcess play a key role by providing information that helps identify and correct gaps in processes.

d) Resource optimization

Performance management, through meticulous analysis of indicators, enables better resource allocation.

It generates synergies between different departments and operational units, thereby increasing efficiency and reducing unnecessary costs.

e) Stimulating innovation and continuous improvement

By focusing on performance measurement, the company encourages innovation and continuous improvement.

This is reflected in process optimization, product and service quality, and the ability to innovate to remain competitive.

f) Exceeding strategic objectives

Rigorous application of performance management helps not only to meet objectives but also to exceed them.

By focusing on key performance indicators, companies can aim for results that surpass their initial forecasts.

g) Transformation and added value through performance management

Beyond measurement and monitoring, performance management deeply transforms company practices.

It generates significant added value that directly contributes to the company’s success and sustainability.

This process is not just a control tool but a real engine of strategic growth.

h) Concrete example

A company in the supply-chain sector can use a management dashboard to monitor in real time its productivity indicators, such as order processing time or the rate of logistical errors.

By analyzing this data, it can optimize processes and reduce operational costs while improving customer satisfaction.

i) What you should remember

Performance management is essential to successfully navigate today’s complex and competitive economic landscape.

It offers a structured approach to measure, analyze, and improve performance, playing a crucial role in company growth and sustainability.

6) Essential tools for effective performance management

To manage performance effectively in a company, the use of appropriate tools is unavoidable.

These solutions facilitate the collection, analysis, and sharing of performance-related information while promoting communication and transparency within the organization.

Here is a comparative table of some popular tools :

The choice of tool will depend on the company’s specific needs, size, sector, and internal culture.

7) How to integrate AirProcess into your performance management strategy?

To integrate AirProcess’s service offering into the context of performance management as discussed in this article, we can consider several key aspects where this tool could be particularly useful:

a) Defining objectives and KPIs

AirProcess can be used to define and track performance objectives across the organization.

Key performance indicators (KPIs) can be integrated into custom forms to allow efficient collection and monitoring of relevant data.

b) Creating integrated dashboards

With its ability to create forms and manage workflows, AirProcess can help design dashboards to visualize performance in real time.

These dashboards could display key performance data at different levels of the organization.

c) Managing and tracking individual and team performance

AirProcess can be configured to track performance at both individual and team levels, in line with objectives defined by the company.

This includes setting up KPIs for teams and departments, as well as monitoring individual contributions.

d) Management by different approaches

This article mentions different management types such as management by remaining work, requirements, earned value, and work-to-do.

AirProcess can be configured to support these various management approaches thanks to its flexibility and customizable features.

e) Performance analysis

With features such as form creation and workflow tracking, AirProcess can be used to analyze performance.

Data collected through forms can be used to determine areas needing improvement and to identify trends.

f) Employee engagement

Since performance management involves all company stakeholders, AirProcess, with its user-friendly and accessible interface, can encourage participation and employee engagement in the performance monitoring process.

g) Flexibility and adaptation

AirProcess, as a no-code platform, offers the flexibility needed to adapt to strategic or operational changes.

It allows quick and easy updates of objectives, KPIs, and workflows to stay aligned with the company’s evolving needs.

In summary, AirProcess can play a significant role in implementing an effective performance management strategy in a company, offering customizable tools for defining, monitoring, and analyzing performance at all levels of the organization.

8) Strategies to optimize performance monitoring

Adopting good strategies is essential to get the most out of tools.

Among these strategies, stakeholder engagement and flexibility in the management process stand out.

To effectively engage employees in this process, it is crucial to :

• Clearly communicate objectives and expectations,
• Make performance indicators accessible and understandable,
• Encourage active participation and feedback.

Flexibility, on the other hand, allows strategies to be adjusted according to market evolution and observed performance.

This implies the ability to regularly revise objectives and reassess priorities.

Fostering a performance culture within the company

Beyond tools and strategies, establishing a lasting performance culture is crucial.

This culture is based on valuing individual and collective performance, recognizing successes, and constructively addressing failures.

Concrete actions to cultivate this culture include :

• Continuous training of teams,
• Implementing reward systems aligned with performance,
• Promoting an inclusive and stimulating work environment.

This global approach not only facilitates effective deployment of performance strategies but also enriches the employee experience and strengthens commitment to the organization’s objectives.

Key points for the successful implementation of a performance strategy

To conclude, developing and implementing a performance strategy in a company involves a deep understanding of objectives, challenges to overcome, and available resources.

Adopting appropriate tools, setting up effective monitoring strategies, and promoting a performance culture are essential to succeed in this endeavor.

It is essential to emphasize the importance of strategic alignment between different hierarchical levels and departments of the company.

This ensures that all actions and decisions effectively contribute to achieving global objectives.

By equipping themselves with the right tools, adopting suitable strategies, and fostering a culture of continuous improvement, companies can turn performance management into a true lever for growth and competitiveness.

Conclusion

This journey through performance management has highlighted its role in company prosperity.

We explored the key players, the importance of appropriate tools, the need for regular and adaptable monitoring, and the value of relevant strategies.

In a world where performance is synonymous with success, effective management becomes a compass guiding companies through turbulent seas.

What is your strategy to navigate this complex and competitive landscape?

To deepen your understanding and explore tailored solutions, feel free to browse the other articles on our site.

You will find a wealth of information and advice to refine your performance strategy.

How do you plan to apply these management strategies in your company?

What specific challenges do you face in your sector?

Frequently Asked Questions

In companies, there are 4 types of performance; they are detailed below.

a) Economic performance

1️⃣ Definition: economic performance focuses on the efficiency and profitability of the company's activities.

2️⃣ Key indicators to monitor: revenue, gross margin, profitability, acquisition cost, return on investment.

3️⃣ Tools to use: integrated dashboards for real-time analysis and data visualization.

b) Financial performance

1️⃣ Definition: targeting the company's financial health, financial performance encompasses cash flow, financing and investment.

2️⃣ Key indicators to monitor: liquidity ratios, debt levels, investment efficiency, available cash.

3️⃣ Tools to use: information systems for financial tracking, predictive analytics software to forecast financial trends.

c) Operational performance

1️⃣ Definition: focused on the efficiency of the company’s operations and processes.

2️⃣ Key indicators to monitor: productivity, production quality, delivery times, customer satisfaction.

3️⃣ Tools to use: CRM to follow the sales cycle, management dashboards to measure productivity and logistical errors.

d) Social performance

1️⃣ Definition: focused on the company's impact on its employees and society.

2️⃣ Key indicators to monitor: employee satisfaction and engagement, social responsibility, diversity and inclusion.

3️⃣ Tools to use: employee satisfaction surveys, social responsibility reports.

Performance management in companies, essential for success and prosperity, is based on enlightened management through these four pillars.

Using relevant indicators and appropriate tools, it guides companies toward achieving their objectives while ensuring continuous improvement.

What are the different types of management?

a) Management by remaining work

1️⃣ The concept: measures the effort required to complete a project.

2️⃣ Concrete application: uses indicators such as time spent and remaining time, allowing adjustment of the action plan.

3️⃣ Tools to use: operational dashboards, measurement indicators of work done and to be done.

b) Management by requirements

1️⃣ The concept: based on the specific needs and expectations of the project.

2️⃣ Concrete application: focuses on meeting predefined requirements, with particular attention to project details.

3️⃣ Tools to use: information system to track requirements, qualitative and quantitative result analysis.

c) Management by earned value

1️⃣ The concept: analysis of project cost and schedule in relation to work accomplished.

2️⃣ Concrete application: provides a global view of the project’s economic and operational performance.

3️⃣ Tools to use: financial and operational metrics, management dashboard to monitor progress and value generated.

d) Management by work-to-do

1️⃣ The concept: assesses the remaining work to finish a project.

2️⃣ Concrete application: enables anticipation of the resources and time needed for completion.

3️⃣ Tools to use: key performance indicators (KPIs) to measure efficiency, trend analysis and forecasting.

Each type of management offers a unique and relevant perspective, helping managers effectively control performance and achieve set objectives.

Using dashboards and adapted indicators facilitates measuring efficiency and making informed decisions.

What is the difference between management and steering?

Management and project steering, although complementary, differ in their approach and focus.

Project management focuses on planning and organizing, creating a framework to transform an idea into concrete reality.

It defines objectives, allocates resources, and manages risks.

In contrast, project steering is focused on executing and monitoring planned actions.

It is the art of successfully carrying out the tasks necessary to produce expected results, respecting deadlines and quality standards.

Thus, if management lays the foundations and draws the map, steering navigates that map, guiding the project toward its completion.