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Institute for Corporate Productivity (i4cp)

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i4cp Study: Focus Performance Management on Customer Metrics

Seattle, WA, August 13, 2014 --( Performance management is generally considered one of the most unpopular and contentious practices in human resources management. And although the consensus has long been that performance management is a drag, it is not going anywhere—most companies continue to use it in some form or another.

Though research by the Institute for Corporate Productivity (i4cp) has consistently shown organizations should largely abandon traditional performance management approaches, i4cp’s latest study outlines four strategies and practices that organizations—those that aren’t ready to overhaul or give up performance management altogether—should do to make it more effective.

Of the four findings revealed in the new report, Creating a High-Performance Culture, one stands above the rest: Performance management is about customers. A truly effective performance management strategy is fluid in that it reflects the changing needs of the customer or broader market. Goals, behaviors, and objectives should all be in direct relation to the customer.

In fact, i4cp research shows that high-performance organizations are 3x more likely to have performance management processes that are externally focused. The good news is that shifting performance management to focus on customers is not a radical change.

The report addresses other ways organizations can make changes that work within an existing performance structure, making incremental adjustments, as opposed to radically altering or discontinuing systems to engage employees, strengthen culture, and achieve success. It also features insights from companies on the cutting-edge of performance management, including:

- Clariant
- Micron
- Emeritus Senior Living

The complete study is available exclusively to i4cp members; a summary version can be downloaded at
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Institute for Corporate Productivity (i4cp)
Adam Harkness

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