{"id":513,"date":"2024-06-12T12:33:17","date_gmt":"2024-06-12T10:33:17","guid":{"rendered":"https:\/\/engagethis.co.za\/__external\/vault\/grievelombard\/?page_id=513"},"modified":"2026-02-04T13:20:06","modified_gmt":"2026-02-04T11:20:06","slug":"strategic-performance-management","status":"publish","type":"page","link":"https:\/\/grievelombard.com\/uk\/services\/strategy\/strategic-performance\/strategic-performance-management\/","title":{"rendered":"Strategic Performance Management"},"content":{"rendered":"\t\t
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Home<\/a><\/span><\/span><\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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STRATEGIC MANAGEMENT<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Strategic Performance Management<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Optimise performance and drive sustainable growth with our services.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Imagine an operating model designed to be \u2018fit for purpose\u2019 and firing on all cylinders. But what happens when inefficiencies and silos hinder performance and strategic goals fall by the wayside? A culture that disregards accountability can develop, and margin pressures can challenge start-ups and SMEs, making it difficult to optimise value creation.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Many start-ups and SMEs initiate projects focused on cost reduction and performance improvement, assessing their business units and functions to uncover value-creation opportunities. However, undertaking these initiatives can be challenging for management, who already deal with the daily operational challenges of running a business.<\/p>

The winning formula is to focus on performance management systems and reporting, quality management, transfer pricing, and reward systems.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Organisations often drown in a sea of KPIs and dashboards, making it difficult to understand the key metrics that significantly influence performance. <\/span><\/p>

With our scorecard model, we create a performance management system that measures critical success factors (CSFs) through a few key performance indicators for each perspective. This information is pulled into a single report, providing insight into service and quality, financial performance, and efficiency. <\/span><\/p>

Management can then quickly identify factors hindering business performance and outline strategic changes tracked by future scorecards.<\/span><\/p>

Information is collected and analysed from four perspectives:<\/span><\/p>

  • Financial measures:<\/span> Successful strategies should aim to create value for shareholders through measures such as survival (cash flow), success (sales or profit), and prosperity (shareholder value). <\/span><\/li>
  • Customer measures<\/span>: Focus on quality, delivery time, performance and service. <\/span><\/li>
  • Internal business measures are essential to<\/span> meeting customer expectations and improving customer experience. <\/span><\/li>
  • Innovation and learning measures<\/span> enhance crucial internal processes to deliver more excellent customer value. Metrics typically emphasise both the quantity and quality of innovation and the attainment of long-term goals for process improvement. <\/span><\/li><\/ul><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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    Quality Management models help start-ups and SMEs improve their quality performance, customer satisfaction, and competitiveness.<\/span><\/p>

    Some of the benefits of Quality Management models for SMEs are:<\/span><\/p>

    • They help identify and eliminate waste, defects and errors in their processes, products or services. <\/span><\/li>
    • They help align their quality objectives with strategic goals and customer needs. <\/span><\/li>
    • They help foster a culture of continuous improvement, innovation and learning. <\/span><\/li>
    • They help enhance their reputation, credibility and market share. <\/span><\/li><\/ul><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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      Picture a sales division performing at its best, but the service division isn\u2019t receiving credit for its work. The performance of the sales division is overstated, while the service division is understated. Transfer pricing techniques help evaluate divisions’ performance fairly and prevent performance distortion.<\/p>

      By encouraging motivation among divisions and controlling information, transfer pricing aligns divisional behaviour with the best interest of the company as a whole. Managers retain responsibility and accountability for their performance, and divisions can be evaluated fairly, allowing for better-informed decisions to improve performance where necessary.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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      Your employees are vital assets to your organisation, and their capability and commitment are crucial to achieving a sustainable competitive advantage. The HR function must be aligned with your capability-driven strategy, and having the correct quantity and quality of people is imperative. <\/span><\/p>

      Performance management requires breaking down your company\u2019s strategic objectives into sub-objectives so individual performance can be measured against personal goals that support and link directly back to your business strategy. These personal goals must be achievable and controllable by the individual and are reviewed through the appraisal process. <\/span><\/p>

      A reward scheme encompasses monetary, non-monetary, and psychological payments, including extrinsic and intrinsic rewards. An Employee Value Proposition (EVP) packages these rewards into a set of benefits offered to employees in exchange for their skills, capabilities, and experiences. <\/span><\/p>

      An EVP can attract and retain talent in a competitive job market, including compensation, career development, work environment, culture, and social impact. <\/span><\/p>

      SMEs can empower their Employee Value Proposition (EVP) through an Employee Share Scheme (ESS) for SMEs. <\/span><\/p>

      Key benefits of the Employee Share Scheme for SMEs: <\/span><\/p>

      • Attract and Retain Key Employees: <\/strong><\/span>The significant tax advantages make ESS highly attractive to employers and employees.<\/span><\/li>
      • Ability to Select Key Recipients: <\/strong><\/span>Depending on the scheme, SMEs can use it for key staff, non-employees, or international teams.<\/span><\/li>
      • Ability to Set Terms and Conditions: <\/strong><\/span>The employer can set conditions for each recipient, including performance and length of service milestones.<\/span><\/li>
      • Encourages Goal Congruence: <\/strong><\/span>This unique benefit can be a powerful motivator, especially when paired with the usual salary package.<\/span><\/li>
      • Support Business Growth:<\/strong><\/span> The overall business performance will affect the performance of the employee shares.<\/span><\/li><\/ul><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t