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Planning, People and Performance Pt. 1: The financial impact of effective people management [Blog]

Person_standing_on_different_levels_150pFor quite a number of years now I’ve been assisting businesses improve their financial performance through provision of management consulting and training services. One disturbing thing that I have noticed is that few businesses fully understand and appreciate the critical link between planning and performance – PEOPLE!

It is people who execute the plans and deliver performance! Unfortunately some businesses make a big show of proclaiming that “people are our greatest asset” but their actions suggest it is only “lip service”. Still other businesses do provide some technical training and people management skills training but do not understand, create and maintain the human link between planning and performance.

The reality is that without an engaged and committed workforce you are unlikely to achieve your planned level of operational and financial performance. Why? If staff are not effectively engaged and committed:

  • there is poor execution of plans, and coordination and integration suffer;
  • absenteeism and presenteeism increase;
  • wastage, duplication and rework increase;
  • sick leave increases; and
  • productivity and profitability decrease.

In order to better align and constructively link planning and performance, a business needs to have a healthy organisational climate and culture which sets a solid platform for staff to be effectively engaged and committed. Needless to say, executive managers, supervisors and line managers require sound interpersonal skills to communicate with staff and to enthuse and motivate them.

Once a business effectively engages its staff and secures their ownership and commitment of the organisational values, goals and objectives, the translation of plans to operational performance can be expected to improve leading to better financial results. If a business operates efficiently and effectively, economy then generally looks after itself.

What can you do to improve the people management side of your business? A number of things immediately come to mind, critically evaluate and where gaps exist, improve:

  • Leadership and management style
  • Interpersonal skills
  • Communication skills
  • Organisational climate and culture
  • Clarity of direction, of roles, responsibilities and accountabilities
  • Performance measurement KPI’s – operational and financial – achievable and challenging

How’s your business performing? Are you getting the best from your staff? It might be time to have an organisational health check and hear what your staff are thinking – there might be greater scope for operational and financial improvement than you think.

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TMS Consulting