Challenges Faced in Implementing Performance Management Systems

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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 is very complex and requires buy-in from all stakeholders. Here is our list of the most common challenges in implantation:


Lack of Sponsorship

The implementation of performance management systems requires a strong and influential sponsor. The sponsor will rally the entire organisation towards the same goal. The lack of a significant sponsor normally results in the priority of the application of the system being lessened and slows down momentum.



The misalignment between organisational goals, individual business units and personal goals is another challenge faced in implementing these systems. 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 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 this purpose and process. 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 faces when implementing management systems is a lack of buy-in. Some people view these systems as a process to monitor what they are doing. And this results in an indifference and sometimes disruption to stop the implementation.


Lastly, manual performance management systems are tedious and lack buy-in. This means organisations may need to invest in user-friendly performance management systems.

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