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Scale and scope |

Scale and scope

Scale and scope component in Brief

Scale and scope examines how holistically performance management is used in an organization. Scale refers to a horizontal perspective, e.g. how holistically performance management is used in an organization’s different business units, or does the performance management cross functional processes and boundaries. Typically, silos exist horizontally between functional processes. Scope, in turn, refers to an organization’s hierarchy and the vertical perspective between, for example, the strategic, tactical, and operational levels. Scale and scope are also discussed in existing maturity models1,2,3,4 in the performance management area.

Although strategy is defined at a higher organizational level, it is communicated throughout the organisation, all the way down to the operational level. In fact, the traditional level for performance management has been that of the individual, and it is this level that has the longest performance management history5. At the strategic level, however, performance management focuses essentially on achieving an organization’s targets, rather than those of each individual.

Key capabilities and management practices

  • Make sure reporting crosses functional borders
  • Expand the performance management beyond financial operations
  • Manage performance at organizational and individual level
  • Create an organization-wide performance management strategy and goals
  • Create an organization-wide analytical plan and framework for metrics
  • Expand the use to external stakeholders
  • Share performance management information with external stakeholders

See also other components

Maturity levels for Scale and scope component

Level 1 Level 2 Level 3 Level 4 Level 5
Local solutions, often done for a single business case; projects are tactical by nature Improved coordination between business units and functional groups; first steps towards functional cross-border reporting Moving outside finance operations; performance is managed at organizational and individual levels; organization-wide performance management strategy and goals Organization-wide analytical plan and framework for metrics; vertical and horizontal expansion; performance is managed at every organizational level Use expanded to external stakeholders; information is shared with external parties; solution supports strategic, tactical and operational decision-making; goals and metrics are everything that is done in the organization

References

  1. Eckerson, 2007
  2. Davenport & Harris, 2007
  3. Davenport & Harris, 2010
  4. Luftman & Kempaiah, 2007
  5. Brudan, 2010

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