Both can be used to help a company improve. But how do you select the one that better suits you?
Goal-oriented performance management
Using this approach, work results and business decisions are evaluated with the overarching target in mind.
You need a clearly defined goal of the project you run. That is your top priority.
To manage performance, you need to:
- Develop an action plan with the overarching goal as the main priority through all the stages
- Deploy key indicators that are used to track whether any given activity is actually getting you closer to the goal
- Deploy digital tools for goal-oriented performance management
Process-oriented performance management
Process-oriented managers focus on how things are done, not on how they help reach the overarching goal. Good and meticulous business processes will, in their opinion, deliver success. Even if they don’t meet their goals all the time, they will get there eventually.
The process-oriented approach is excellent if you have time-tested processes. In order to have really perfect business processes, you need repetition and the gathering of huge amounts of statistical data. Today, however, companies need to change objectives often and fast. You may simply not have the time or resources to repeat and document your processes.
So what you should do? According to business2community.com, in order to reach your goals, you should combine both approaches.
- Take the correct business actions and set the right goals
- Build and install the right business processes
Therefore, you need to make the best of two worlds. Don’t employ them in parallel, but assess which time or situation is suitable for which one. If the time is right to drop well-designed processes and take risks with something new, that may be the best approach.
-jk-