Customer-Driven Performance Management

Customer-Driven Performance Management

 

Today’s business environment involves infusing a customer’s perspective into performance goals in organizations.

The goal is to focus on performance management strongly, directly, and explicitly on core business drivers. Ensuring the inclusion of customer-related metrics enables this. Employees tend to work toward targets of their own department, function, or geography. Employees in different business ā€œsilosā€ fail to coordinate, even in their service to the same customer.

An individualā€™s performance goals cascade from business-level priorities to teams and individuals. Customer satisfaction goals arise out of a dialogue between employee and customer on a given parameter.

This approach differs from standard ā€œgoal cascadingā€ practices in two critical ways. First, the infusion of a customer element into performance goals embed key business drivers. Second, placing responsibility for customer expectations with individuals enfranchises employees into business goals.

 

We have experienced, that a critical success factor is a clear and consistent communication. Clarifying the rationale for introducing customer elements into performance goals is important. Internal customers must make a clear business case for their performance expectations. This helps avoid over-focus on serving internal customers this increasing cost and inefficiency.