• Does your organization use a differentiated approach to goal setting and rewards?
  • Can you identify your pivotal talent?
  • Do you understand the upside of accepting a certain degree of human capital risk?

Many organizations overlook the role performance management can play in helping achieve their strategic objectives. They view performance management simply as a tool that aids in compliance with certain critical HR processes including goal setting, mid- and year-end reviews, compensation distribution, etc. But organizations have an opportunity to transform their use of performance management by leveraging its power as a business management tool that aligns decision making with the strategic value of different roles, reflects the unique aspects of the business model and culture, and considers the risk profile of the industry. Such a transformation will often require a wholesale change in mindset and process. Instead of being focused on achieving a targeted performance and reward distribution, a strategically aligned performance management system focuses on the roles and segments that drive value, and differentially aligns decision making with the pivot points of the business model. Organizations using this approach to performance management can expect to realize a higher return on their investment in the workforce.