The way I like to think about performance management is identifying the driver of the business and aligning performance goals around that driver. For example, on HubPages.com the driver of the business is quality Hubs (Hubs are similar to articles). Once a performance metric is set, people should optimize their work around the performance metric. This is where common sense comes in. You have to take a performance metric and couple it with good judgment. If someone developed a script to create thousands of hubs, we would hit the goal, but the quality would be off. So, constraints need to be put in place.
So for marketing, they have a performance goal of Hubs. Those hubs have to be of a certain quality level, acquired at cost per acquisition price with an expected payback period within a specified time frame, and they must demonstrate good judgment with regards to the company (no gaming the system). Now, that the performance metric is set, startups often don’t have the history of data required to set accurate performance metrics and are often in a state of frequent change. When that happens, sometime performance metrics need to be paused and taken up to a higher level, or reset because a new major variable is understood, so you will need to be flexible.
Let’s say that the business isn’t working out and you’re going to have to pivot. The new decision point is going to be able to figure out if you have a business that is worth investing in before putting performance metrics in place. This is where the ultimate performance management is put in place. Will the company survive? Fail and everyone is out of a job. Succeed and refine performance objectives to drive the business.
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