Performance Reports Puts Communication to Work
Performance reporting is where organization begins to put the communication to work. Performance reporting provides insight into how well the organization is doing in executing the strategy usually laid out on the strategy map. Performance reporting process provides a framework for reviewing the measures that support strategic objectives. When measures are off target, reporting enables the organization to review and adjust the initiatives that support strategic objectives. Performance report is the document the organization creates in preparation for reporting meeting, which use to monitor progress in executing the strategy.
The ultimate goal of the performance report is to generate discussion, make course corrections, and determine the next steps in the implementation of the strategy. Performance report contains:
A visual overview in the form of the strategy of how the organization is performing.
A performance analysis, with an objective owner identified for each strategic objective.
Measure details, including measure owners, calculation methods, and actual figures as compared to established targets. Charts and graphs are often used.
Initiative details, including accountability, milestones, completion status, and progress comments.
Preparation of the report includes key organizational analysis required to accurately represent performance to strategy. Preparation of the report generally contains four distinct activities:
Collect Data: There are several sources from which organizations pull data to populate the performance report. Some are easily accessible, while some are more difficult to locate and access. As time progresses, the organization will generally streamline the process.
Conduct Analysis: The process of regularly gathering, organizing, and studying information in the effort to determine how well the organization has achieved the objectives defined in its strategy. Strategic performance analysis focuses on the performance of the organization as an entity and not on the performance of individuals. Performance analysis tests the soundness of organization’s strategy; it determines whether the hypotheses about how to achieve the vision and mission are correct.
Determine Performance Status: Determination of Red/Yellow/Green status should be based on organizationally accepted standard definitions. In general Green means that the team is satisfied with the current level of performance and expects it to continue. Yellow means the current performance falls short of expectations, but progress is being made. Red means the current performance falls short and requires initiatives and resources to drive improvement.
Summarize, Synthesize Data and Compile Report: Is especially critical in normalizing the report for the organization. The analyst must objectively review the status applied to all objectives, measures, and initiatives, and determine if they accurately reflect “reality” and the performance against the strategy.