Corporate Performance Management

Corporate Performance Management - Then and Now

10 April, 2012

This article charts the history of corporate performance management through the window of time and where should we aim at in the current scenario. Pertinent to mention is the fact that India has the opportunity to lead the world, provided we take the right decisions.

ORGANISATIONS WORLDWIDE are striving for better results with lesser resources. The causes which led to this scenario can be found in the management of performance in such organizations. The first entities to work as organizations were churches in medieval times and the military since ages. The military is still the most pertinent example of an organization.

The results of the operations of these organizations could be seen in the number of victories won and territories occupied. Organisations then also needed to know how they would perform and if any shortcomings were found; tactics were developed to overcome them.

The sustainable competitive advantage factor made famous by Harvard Economist Michael Porter was also used to the strength of armies. Today, also corporate scene is no different, but with more precision and accuracy. But sustainability is one aspect of performance management has been missing all throughout the journals of history.

Since, time economic resources were thought to be free and unrestrained use led to today what could be termed as ‘Global Imbalance’. This Global Imbalance is a culmination of all the economic activity that has been going on unchecked. Now we see that future is becoming bleaker and bleaker day by day. Resource usage is now given extra bit of control. Multiple metrics are being developed on the efficiency frontier but the effectiveness of the resources should also be sought.

The global corporations have taken a foot forward, India must not stay behind. We could lead the world in sustainable corporate and business growth. Our country is still in the nascent stages of economic growth. Corporate performance management should now be aiming at sustainability as a metric. This thinking would provide the corporate world with more to have and stay in the long term. The mistakes that the industrial revolution made should not be repeated. Change has to occur and it will, whether we want it or not.