At most companies the business strategy is no sooner developed than it begins to lose steam. There’s no mechanism to cascade and instill the strategy down through the organization and to ensure that it is actually implemented. This leaves divisions, business units, departments, and individuals to set their own priorities as best they can, whether or not these priorities are in alignment with overall strategic objectives.
To maximize their resources, managers need to know the game plan and their role in it. They also need frequent and accurate feedback telling them how they are doing, where they are falling short, and what they need to do to get back on track. Performance management is supposed to address these challenges, but in most companies it is pursuing its own goals—assessing performance in isolation without asking if that performance is actually helping the company achieve its strategies.
