Generate performance review templates. Manage Key Performance Indicators

Performance Scorecard Builder

Managing Smart proposes an application that generates and stores internally comprehensive, easy to use performance review templates. It is capable to evaluate the implementation of key performance indicators resulted either from rolling out of a Balanced Scorecard Strategic Planning process, or from a simple set of entrepreneurial management objectives. Much more than a simple employee evaluation template, the application manages internally all the algorithms that are necessary for a flexible evaluation process. The solution combines the friendly format of Excel worksheets with a customized and fit for purpose interface that guides the user through the whole process.

 

The theory behind: Balanced Scorecard

In a very brief description, The Balanced Scorecard management system, conceptually introduced early in 1990’s, is a framework meant to empower managers with a more balanced approach to the organizational performance. In order to offer a more structured view that leads to efficient management of the organization, the framework divides the strategic goals of the company in four main interdependent areas, as follows:

» Financial Perspective (elements such as: generating revenues, return on investments, profitability, etc.)

» Customers Perspective (services or product quality, visual presence on the market, customers satisfaction, price management, etc.)

» Internal Perspective (internal productivity, cost efficiency, relations between organizational departments, etc.)

» Learning and Growth Perspective (develop employee capabilities, job succession plan, etc.)

In a simpler, less formalized or less structured format than those found within large organizations, the Balanced Scorecard principles can also be identified within the entrepreneurial environment, probably with a high emphasis on Financial perspective and with less focus on Learning and Growth.

 

A practical point of view: Balanced Scorecard has been developed; What’s next?

Let us assume that the work of revealing organization Vision and Strategy into valuable and nice Balanced Scorecard charts has been successfully done (or, at a smaller level, entrepreneurial objectives have been identified); now it is the time to make them live and generate results by carrying over the Performance Appraisal. This is the point where performance review templates come into action. In a practical approach, this means transposing the identified strategic goals into measurable business objectives, also named Key Performance Indicators, aggregating them for specific relevant areas and cascading them down within the organization, up to the level of individual staff. The fulfillment level of the relevant Key Performance Indicators targets becomes a measure of efficiency. Once identified, this level of fulfillment is used for taking positive correction actions, or for incentive purposes. In practice, the appraisal process is rolled up either via performance review templates, or via a centralized and sophisticated application, if affordable.

 

Performance Appraisal

A Performance Appraisal process is generally a structured activity where fulfilling of the core Objectives is measured against relevant targets that are set in line with the factors that are crucial to the success of the organization, as resulted from a Balanced Scorecard or from another management framework. Apart from a thorough evaluation of the efficiency, Performance Appraisals can be also actively used in implementing incentive schemes, meant to enhance the high performance and to reward it. Two main stages can be identified in rolling of a Performance Appraisal process, as briefly described below:

 

1. Defining Objectives ("Key Performance Indicators"):

Objectives are set and agreed at the beginning of the appraisal period and must be highly relevant for the performance of the entity: their fulfilment should contribute to achieving of the critical success factors of the organization, identified within Balanced Scorecard. They must be clear and measurable, having attached the proportions (Weights) in which they contribute to the overall performance assessment. Relevant, measurable Targets should be set, defining the levels for which each Objective can be considered as being fulfilled. To comply with the Incentive Policy of the organization, relevant algorithms should be set, in order to calculate the final Score, for a final assessment and for rewarding, proportional with the overall achievements.

2. Measure and Evaluate Results:

At the end of the appraisal period, the actual results are measured and recorded for each objective, against the targets that were initially set. The outcome of the process is the detailed overview of the fulfillment for each objective (scores), as well as their aggregated percentage of fulfillment, that can be used for positive correction actions or for incentive purposes.

 

Performance review templates

Sometimes named “Performance Scorecards”, efficient Performance Review Templates are much more than a simple evaluation form (although they can be used as employee evaluation templates as well) and must perform some basic tasks that derive from the Balanced Scorecard approach, such as:

» Manage the agreed key performance indicators (objectives), together with their:

› target values

› weights of the objectives within the total 100% of scorecard weight

› the agreed interval around the target (“cap”) for which the objective is considered to be proportionally fulfilled.

» Accept data entries for the final achievements against targets.

» Calculate the level of achievement for each of the Key Performance Indicators, based on its target and cap.

» Calculate the percentage of objective contribution to the overall scorecard, based on its weight and fulfillment level.

» Calculate the overall (aggregate) fulfillment of the objectives, at the level of the whole scorecard.

 

Performance Scorecard Builder – the application

Managing Smart proposes an application that generates and stores comprehensive, one page performance review templates, with complex algorithms managed inside the application, according to the input made by the user via a simple and intuitive interface. Performance Scorecard Builder is an original method, embedded within an application, that allows managers to easily create performance review templates and to set the algorithms that define the calculation of the final fulfillment of the objectives and the scores for incentive purposes, in detail and aggregate. The outcome can also be used as employee evaluation template. The main features of the Application are:

» Two Sections are available for performance appraisal, with similar functions and user defined names (for example: “Business” – 5 objectives and “Individual” – 10 objectives).

» Calculates the final fulfillment in percentages, for each objective.

» Calculates the final Score for Incentive purposes for each Objective, for each Section and aggregate, based on targets, caps, weights and actual results of each Objective.

» Calculates scores proportionally within flexible intervals defined by the user around the Targets.

» Visual presentation of the performance (charts).

» Discretionary factors can be applied if needed, for multiplying the scores for each section.

» Flexible definition for objectives types, including for those that are not directly measurable.

» Allows usage as employee evaluation template, or as appraisal form for an entity (department, unit, etc.).

» “Live” guidance for completing the scorecard and highlighting errors or missing information.

» All the resulting templates can be stored inside the application in any stage of completion, available to be recalled for updating, reviewing, printing or for being used as a base for creating new ones.

» Exporting individual scorecards or the whole scorecards List for further processing in Excel or for back-up purposes..

» Importing a previously saved Scorecards List for restoring or reviewing purposes.

» Clean workspace: eliminate blank rows, colors and shapes for clean printing, suspend calculation for incomplete Scorecards and highlight missing information.

» “Live” Help for each relevant command and for process description (10-20 minutes of pre-reading of all Help files before operating the application is recommended, but you can also start straight away and ask for Help only when you need).

» Simple and intuitive interface and no special training needed; minimal knowledge of Excel is not a must, but might be a plus.