Course Content
Allocating work
1.1 Consult relevant groups and individuals on work to be allocated and resources available 1.2 Develop work plans and allocate work according to organisational requirements and operational plans 1.3 Develop and confirm performance standards and key performance indicators with relevant staff 1.4 Conduct risk analysis according to organisational risk management plan and legal requirements
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Assess performance & provide feedback
2.1 Review performance management and processes according to legislation, organisational objectives and policies 2.2 Train participants in the performance management and review process 2.3 Conduct performance management according to organisational policies procedures and relevant timelines 2.4 Monitor and evaluate performance according to performance standards and key performance indicators 3.1 Provide informal feedback and coaching to staff 3.2 Advise relevant personnel, where performance is poor and take necessary actions 3.3 Document feedback according to the organisational performance management system 3.4 Conduct formal structured feedback sessions as necessary and according to organisational policy
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Manage performance follow up
4.1 Develop performance improvement and development plans according to organisational policies 4.2 Monitor underperforming individuals according to organisational policies 4.3 Respond to underperforming individuals, as required 4.4 Reinforce excellence in performance through recognition and continuous feedback
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BSBLDR522 Manage people performance
About Lesson

There are a number of systems available to monitor and foster team performance. Below, we look at two in detail, the balanced score card, and the use of KPIs. 

Balanced Scorecard (BSC): A Holistic Performance View

 

The Balanced Scorecard (BSC) is a comprehensive performance measurement system that looks beyond just financial metrics. It provides a more holistic view of an organisation’s performance by considering four key perspectives:

 

  • Financial: Measures traditional financial health, such as profitability, return on investment (ROI), and revenue growth.
  • Customer: Measures customer satisfaction, loyalty, and acquisition. Examples include customer churn rate, customer lifetime value, and Net Promoter Score (NPS).
  • Internal Processes: Measures the efficiency and effectiveness of internal processes that create value for customers. Examples include cycle time, defect rate, and process improvement metrics.
  • Learning & Growth: Measures an organisation’s ability to innovate and improve its capabilities. Examples include employee training hours, employee satisfaction surveys, and R&D spending.

 

How it’s Used:

  • Strategic Alignment: Organizations can use the BSC to translate their overall strategy into specific, measurable goals for each perspective. This ensures all levels of the organization are working towards the same objectives.
  • Performance Monitoring: By tracking KPIs within each perspective, management can identify areas of strength and weakness and make necessary adjustments to strategies or processes.
  • Performance Communication: The BSC provides a clear and concise way to communicate performance information across different departments and levels of the organisation.

 

Benefits for team perofrmance:

  • Holistic View: Provides a balanced view of performance beyond just financial metrics.
  • Strategic Alignment: Ensures all activities are aligned with the overall strategy.
  • Performance Improvement: Facilitates continuous improvement by identifying areas for improvement.
  • Communication & Focus: Creates a common language for discussing performance across the organisation.
  • The BSC aligns team goals with the organisation’s overall strategy, ensuring everyone works towards the same objectives. This fosters a sense of purpose and direction within teams.
  • By identifying areas for improvement in the “Internal Process” perspective, the BSC can guide the implementation of process improvements that streamline workflows and enhance team efficiency.
  • The “Learning & Growth” perspective highlights skill gaps and areas for development within the team. Based on this information, targeted training programs can be implemented to enhance individual and team capabilities.
  • Further reading

 

 

Key Performance Indicators (KPIs): A Targeted Approach

 

KPIs are specific, measurable metrics used to track progress towards achieving strategic goals. Unlike the BSC’s broader perspective, KPIs focus on a narrower set of critical performance indicators directly linked to success.

 

How They’re Used:

  • Goal Setting & Tracking: KPIs are used to define and track progress towards specific goals. They provide a quantifiable way to measure success and identify areas needing improvement.
  • Performance Management: Managers can use KPIs to track individual and team performance against set goals. This information can be used for performance reviews, coaching, and development planning.
  • Decision-Making: KPIs provide data-driven insights for decision-making. By tracking KPIs, management can identify trends and make informed decisions to optimise performance.

 

Benefits for team performance:

  • Focus & Clarity: Ensure focus on the most critical performance indicators for success.
  • Measurable Progress: Provide a quantifiable way to track progress towards goals.
  • Improved Decision-Making: Offer data-driven insights to inform decision-making.
  • Increased Accountability: Promote accountability by setting clear performance expectations.
  • KPIs create a culture of accountability within teams. When team members are aware of the specific metrics they are responsible for, they are more likely to focus their efforts on achieving those goals.
  • Regularly reviewing KPIs allows for timely intervention and course correction. If a team KPI falls behind, adjustments can be made to processes or resource allocation to get back on track.
  • By celebrating successes in achieving KPIs, team morale and motivation are boosted, further fostering high performance.
  • Further reading

 

Choosing the Right System:

 

The best performance measurement system depends on the specific needs of the organisation.

  • The BSC is ideal for organisations seeking a comprehensive view of performance across all areas.
  • KPIs are a good choice for organisations needing to focus on a limited number of critical performance indicators.

 

Many organisations use a combination of both approaches depending on the strategic objectives and departmental goals.