Page 73 - Performance Leadership

62 • Part I A Review of Performance Management

F igur e 4.1
The Performance Leadership Framework

External Self- Self
Perception Perception

Analytical
Dimension
Social Values
Dimension Dimension
Operational
Dimension

Transparency Alignment Authenticity
Public Relations Management Info Positive Values
Risk Management Business Processes Negative Values

Business Strategy Management Disciplines Organizational Culture
Mission

to raise the bar. The operational dimension and the analytical dimen-
sion represent business-as-usual performance management, the two
loops of management. The operational and analytical dimensions pro-
vide an organization’s self-perception. Management reports show how
we are doing against targets. Reports are analyzed, interpreted, and then
discussed by the management team; results are perceived as good or
bad. The key to better self-perception is alignment, making sure the
management reports have a “single version of the truth,” instead of dif-
ferent stories. Business processes need to be aligned for managers to
understand their contribution to the overall results. And management
disciplines, such as performance management and risk management,
should be aligned for complete and balanced decision making.
The social dimension and values dimension are new to performance
management. They provide the guidance that is needed to come to the
right strategies and decisions. The social dimension provides the
“outside-in view.” It guides organizations in determining how the actions
and reactions of the organization’s environment affects the business.
This is important, at least for public relations and risk management pur-
poses, but on a more strategic level it also helps define a better business