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Best Practice
Performance Management is a process and not a once-off event. It therefore requires the appropriate level of strategic guidance and commitment from the leadership team of the organisation. To ensure the proper alignment (downward cascading) of performance requirements to meet the required outcomes it is imperative that a top-down approach is followed. The leadership team of the organisation needs to ensure that all the strategic objectives, as were defined in the Strategic Plan (called an IDP in the municipal space), are included and unpacked in the Annual Plan (called SDBIP of the municipality) using the SMART principles.
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Organisational Performance Management focuses on the measurement of the achievement of organisational strategic outcomes included in the Strategic Plan and cascaded down to the annual plan.
Individual Performance Management focuses on the management of an individual’s performance in contribution towards the organisational indicators. This is achieved by building an individual Scorecard for each employee, using the SMART principles, and measuring the output against the individual’s agreed upon performance indicators.
The graphic below presents a high level overview of how an organisation can align (downward cascade) their organisational outcome indicators down to the individual job indicators.
