Many busyness need a performance management system to support the organization of their offices as their practice grows. This is because they start out as a small business and then it grows to a size that is hard to manage. The result can be a business or practice that is in chaos — low productivity, shrinking margins, poor morale, communication problems, low customer satisfaction, a high error rate, poor customer service, poor quality, high turnover and a lower declining customer base. Employers caught in this dilemma might also find themselves facing a lot of resistance from staff and even customers as they try to change and adapt their businesses to go with the flow of the changing times.
According to Vince Vitriolic, the president of Mega Marketing and author of a book called “Have You Forgotten?” employers who experience these problems are in need of a performance management system. Overtime as the issues get out of hand, the business owner may be trying to apply Band-Aid solutions that only work in the short term but not the long term.
Ultimately a performance management system is just a sub-system of an overall strategic management system. There are two types of strategic management systems including performance management and another type called strategic planning. Strategic planning s more about where you want to go with a business and how you are going to get here. Performance management planning is more about managing people in your office and teaching them how to motivate themselves and then rewarding them when they do a good job.
According to Vince Vitriolic one of the most important things you can do to grow a business is to motivate people with money. Some research was done in 1999, which indicates that people who join organizations in the 21st century want an organization where they can grow. Money is going to have to be a given. You’re going to have to meet the marketplace in so far as compensation is concerned.
An effective organization is not full of people who all want to run the business. Don’t hire too many of what Virpoli calls “95 percenters.” These are individuals that must be in control. What you really want are the other “5 percenters” who can carry out the orders of the one or two team leaders you hire that are those “95 percenters.”
Most offices today are run by default. Somebody does something bad and then gets fired for it. Otherwise the business limps onwards in an inefficient way and not living up at all to its potential to make money. There is just no sense in investing in chaos. When you implement a performance management system you employ team leaders so that you can maximize your office’s potential to make profits.
