Page 130 - Performance Leadership
P. 130
Chapter | 8
BALANCING
PERFORMANCE
AND RISK
Risk management is proactive performance management. Why wait
until performance indicators show business is not going well?
Performance management is proactive risk management: the best
defense is a good offense.
Two Sides of the Same Coin
Through methodologies, measurement, management processes, and sys-
tems performance, management monitors and manages all domains in
an organization; it ensures that these domains align for optimal business
performance. This means performance management is related to almost
every management discipline. Performance management is related to
human resource management inasmuch as performance is ultimately
tied to having the right people in the right place. Performance manage-
ment is related to operational management because strategies need to
be implemented and need to work. Performance management is related
to knowledge management because much of the decision-making
process is based on tacit knowledge. Performance management is also
related to risk management; in fact, they are two sides of the same coin.
Performance management focuses on strategic objectives and how to
reach them. Performance leadership recognizes the differences in
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