Challenges Faced in Implementing Performance Management Systems

Challenges Faced in Implementing Performance Management Systems

Performance management systems are processes and tools created to monitor the performance of preset long and short-term goals. The process of implementing such systems are very complex and requires buy-in from all stakeholders. Below we discuss the common challenges faced when implementing performance management systems.

Lack of Sponsorship
The implementation of performance management systems requires a strong and influential sponsor who can rally the entire organisation towards the same goal as to how the system will be implemented. The lack of a significant sponsor normally results in the priority of the application of the system being lessened which slows down momentum.

Misalignment
The misalignment between organisational goals, individual business units and personal goals is another challenge faced in implementing these systems as this is customarily caused by organisational politics as well as competing agendas. It is critical that an establishment first addresses alignment before implementing performance management systems.

Subjective Measures
Setting measures is part of the process of designing performance scorecards. Objective measures like sales units or revenue are easy to set but the subjective or independent measures always deliver a challenge. The challenge of subjective measures is that they rely on an individual’s viewpoint which is prone to bias which may, in turn, discredits the process entirely.

Lack of Performance Management Skills Amongst Managers
It is important that managers are proficient in the purpose and process of how to conduct performance management. A lack of experience on the managers part may result in performance management systems being negatively affected.

Lack of Buy-in
One of the biggest challenges that one will face when implementing performance management systems is a lack of buy-in. Some people view these systems as a process to monitor what they are doing. This results in an indifference and sometimes disruption to stop the implementation.

Lastly, manual performance management systems are cumbersome and will result in the system being abandoned completely. This means organisations may need to invest in user friendly software to embed the performance management systems.

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