Performance management is essential to businesses. It will help them align their employees, resources, and systems to meet their objectives. It works with metrics. Performance management can never happen without metrics.
“What gets measured gets done” is a strong performance management simple principle and guide. In an ideal setup, a business creates metrics and targets and cascades them from the top level to all employees. Usually, the line managers will monitor those metrics and regularly engage with their teams to discuss progress in meeting the targets.
The metrics that a company chooses are very vital in achieving the success of the performance management system. It must promote the performance it desires. Normally it can be achieved by incorporating these into a balanced scoreboard.
Bear in mind though, that these metrics of the performance management should be known and understood by all parties involved. This should also be based on the overall objection or vision of the organization. Therefore, metrics is necessary for measuring performance effectively.