Define Measures, Recognition, Rewards & Governance
This stage is focused on understanding what will drive performance in the new structure and defining the measures and principles that will guide and inform the way the new structure is managed.
Guidance
There are three key steps you must complete during this stage.
Measures - the indicators of organisational performance that will tell leaders and managers whether they are on track to deliver goals and objectives.
When defining measures, you should focus on shifting the emphasis…
From:
- inputs (resources required to get the job done)
- processes (actions and tasks carried out within a process)
- outputs (products, goods or services delivered)
To:
- measuring outcomes: impacts, benefits or consequences for the public
Operating Principles - often referred to as the 'glue' that keeps the organisation and its work joined up. Operating principles are explicit agreements made between stakeholders which guide the way the organisation and the people in it will operate and be managed.
Examples of operating principles that might need to be established include:
- Autonomy & decision-making – do we have the freedom to manage locally vs. what is determined centrally? How are decisions made and by whom?
- Meetings – when do we need to come together? Purpose and frequency of meeting? Who should attend? Standard agenda items? Format (e.g. face-to-face, call)?
- Reporting and information flows – what reports need to be generated? Purpose? Content? Circulation?
- Escalation – what issues will be escalated? Under what circumstances? How will they be escalated?
- Communication – how will leaders and managers communicate with each other and their people?
- Behaviours and 'ground rules' – the explicit agreements between stakeholders about the behaviours that will be essential to make the new structure work effectively.
Check alignment – of existing reward and recognition processes to ensure that they are congruent with new measures and operating principles.
Tools
Measurement of Organisational Design - This resource outlines the current developments to the balanced scorecard as the main approach for measuring Departmental Performance.
Strategy Map – Kaplan and Norton’s strategy map which transformed their Balanced Scorecard from a performance management system to a strategic management system.