What’s your performance management IQ?

Sharpen your pencil. It’s time to test what you’ve learned.

1. Which of the following statements about performance management is true?

a.  Large-scale deployments of performance management are frequently more effective than smaller efforts.
b.  Performance management initiatives are the responsibility of the finance department.
c.  Many companies struggle with data, the most critical component in a performance management system.
d.  The only important reason to invest in performance management efforts is for increased revenue.

2. Which of the following is not part of the three-step process to a successful program?

a.  Apply information to improve the way you do business.
b.  Measure everything you can.
c.  Manage information by tracking performance against metrics.
d.  Build a solid foundation of reporting information.

3.  Which of the following should be a performance management “don’t” instead of a “do”?

a.  Do focus on alignment.
b.  Do work in silos.
c.  Do leverage analytics.
d.  Do address cultural issues.

4.  What technologies have nearly doubled the success rate of many performance management initiatives?

a.  Predictive analytics.
b.  Data cleansing and rationalization.
c.  Dashboards and scorecards.
d.  Query and reporting tools.

5. To lay a strong foundation for your performance management efforts, which of these steps do you begin with?

a.  Manage systems, people and processes within your organization.
b.  Begin measuring targets and KPIs.
c.  Determine what improvements you will make.
d.  Establish your infrastructure.

6.  Which of the following is not a best practice for performance improvement?

a.  Address cultural resistance to performance measurement and collaboration.
b.  Involve all levels of employees and departments in your performance management efforts.
c.  Use dashboards as the primary vehicle to manage performance.
d.  Follow a sequential, phased approach to performance management.

7. There’s a successful equation to implementing and reaping the rewards of performance management. What’s the most critical step in that equation?

a.  Align your organization.
b.  Buy multiple technology systems to manage data.
c.  Ensure that you have sufficient data to base decisions on.
d.  Make a list of metrics you’ll use.

8.  What is the correct order of phases for activities associated with performance management?

a.  Manage and control to align the organization; improve performance to drive the organization; report performance to bring transparency to the organization.
b.  Report performance to bring transparency to the organization; improve performance to drive the organization; manage and control to align the organization.
c.  Report performance to bring transparency to the organization; manage and control to align the organization; improve performance to drive the organization.
d.  Manage and control to align the organization; report performance to bring transparency to the organization; improve performance to drive the organization.

9. Ultimately, where does the success of enterprisewide performance management initiatives reside?

a.  Chief executive officers and the finance department.
b.  Every department in the organization.
c.  Finance and human resources.
d.  Chief executive officers and human resources.

10. In the context of performance management, which of the following clichés is true?

a.  If you build it, they will come.
b.  The more the merrier.
c.  Everybody’s doing it.
d.  Bigger is better.

What technologies have nearly doubled the success rate of many performance management initiatives? Find out here.

The Answers:

1.  c: Data is at the heart of performance management, but unfortunately many companies still struggle with it – whether it’s too much data or too many storage locations or not enough trust that the data is accurate.

2.  b: Many organizations measure what they can – or what’s easy – instead of what they should. This is not part of the three-step process.

3.  b: Working in silos could create new performance management problems. Horizontally and vertically, it’s important to get all levels of employees and every department involved in your performance management efforts.

4.  a: Predictive analytics, including data mining and forecasting, nearly double success in many areas, including competitive advantage, agility and alignment.

5.  d: Foundational tasks associated with step one all contain technology components, so the message is clear: Establish your infrastructure first.

6.  c: Many organizations look to dashboards to tell them where and how to make improvements. Dashboards alone may not have the answers. Only dashboards supported by business intelligence can help identify opportunities for improvements. 

7.  a: Alignment within the organization is the critical step in seeing performance management rewards. It’s also the benefit organizations most want out of their performance management initiatives.

8.  c: Report performance to bring transparency to the organization; manage and control to align the organization; improve performance to drive the organization. Organizations that take this sequential approach and that perform more activities at each phase show dramatic increases in the benefits they achieve.

9.  b: Accountability must rest across departments to encourage collaboration and achieve the organization’s desired outcomes.

10.  c: Performance management has moved beyond finance to all areas of the organization.

Your IQ score:

9-10 correct: Awesome work! You’re a performance management genius! If you haven’t already, go out and put all those valuable principles to work for your organization. If you’ve got great ideas to share, feel free to join in our performance management blog: blogs.sas.com/cokins.

6-8 correct: Good job. You were paying attention, but your performance management IQ could still use a little work. Check out Tony Adkins’ book Case Studies in Performance Management: A Guide from the Experts. You can browse the contents or read a sample chapter at www.sas.com/sascom-adkins.

3-5 correct: Not really a score to brag about, is it? Did you miss a couple of articles in the series? If so, it’s not too late to improve your IQ. Check out the series’ Web page for an overview and access to the other four articles: www.sas.com/sascom-pmseries.

0-2 correct: You should consider remedial help. Take the first step by looking at the white paper that summarizes results from the 2006 performance management survey: www.sas.com/sascom-pmsurveypaper. And you might also want to download a free copy of The Aligned Organization, a new SAS white paper:  www.sas.com/sascom-alignedorg.