Business Performance Management Implementation

Implementing a performance management system

The implementation of a business performance management approach involves a number of key steps, including design, approval, communication, training, administration and follow-up.

Like all change programs, a performance management system implementation requires careful planning and management.

Every organisation is different. Many factors need to be considered and allowed for.


The design or redesign phase establishes the framework, see Performance Management Design for more information.

It also includes the planning for the approval, communication, training and administrative phases (the implementation plan).

Approval processes

Once designed or redesigned, the performance management system needs to be reviewed and approved to ensure business and employee needs are met. This covers both management and employee interests.

Senior management need to be satisfied that all relevant requirements have been considered. This includes alignment with corporate business and human resources strategies, as well as ensuring sufficient resources (people and money) have been allocated to the implementation process.

Employees, through some form of participation method, should also have the opportunity to offer comment.

Approval also includes agreement to the implementation plan established at the design phase.


Once the system is approved, the communication strategy should be implemented. This involves communicating the key features, benefits and impact of the scheme.


A variety of training programs and support mechanisms should/could be provided, see Performance Management Training for more information.

Administration and support

A well designed and implemented system will be self-supporting. Participation will be voluntary and the "coercion factor" will be minimal. The human resources (human capital) "department" is normally charged with the overall administration and monitoring of the system. Line management is normally responsible for the local scheme management.

Other performance management resources

External assistance

Management and employee involvement in the design/review of a performance management system is important. Equally important is "getting it right". The management literature is full of articles about the failures and problems of performance management implementations. An external consultant can facilitate the process to overcome the pitfalls but maintain management and employee participation, a key factor in achieving "ownership".

If you require consulting assistance, or telephone or write to Derek Stockley at Contact Details.

For more information about performance management approaches, including training and implementation, select: Performance Management.