	Performance, Metrics and Management practices Recent international studies (including the report - Management Development in Ireland: the report of the Management Development Council, February 2010) show that management competency / practices and corporate performance within the Irish Small and Medium sized enterprises (SMEs) lags significantly behind many of our European neighbours, including that of the UK. Business research indicates a strong relationship between management development, management practices and bottom line / business performance and productivity. In particular, the research showed that a single point improvement in a firm's management practices score is, in terms of impact on company output, equivalent to a 25% increase in the labour force or a 65% increase in invested capital. The studies involved analysis of management practices in the areas of Operations / Lean Management, Performance Management, Target / Goal Management and People Management. Ireland's score was quite average, lagging significantly behind the global average and below Great Britain, while scoring ahead of Greece and Portugal, but below Poland and the other longer established member countries of the European Union. Approx. 50% of the gap in the corporate performance score was due to management practices. The research also noted that key weaknesses for Irish business performance focused on the following areas: Defining the right metrics / performance measures Reviewing these metrics / performance measures Addressing poor performance & performers These studies provide Small Business with a useful basis for improvement work to Irish companies, notwithstanding the need to accommodate a particular company's own individual situation. Measurement / Metrics "Measurement is management" goes the well known adage. To what extent do we continue to "muddle along"? Does staff know what is expected of it? Do you celebrate good performance? Do you address poor performance? Are you drifting? Competition is keen, and you must know what you are about everyday and if corporate performance is not up to scratch, if you do not know how to correct this, then you company is in danger. Bridging the Knowing to Doing / Acting Gap It sometimes happens that in spite of good information, companies are slow to act. At an individual level, replicated at a corporate level, there can be the tendency to think that knowing something does not lead to doing something about it (eg. DIY books). Again at an individual level, the best examples of doing something about "it" comes from the sporting arena, such as golfers. What to do at corporate level? At some point in time, people have to make decisions and act in spite of the fear / risk of making mistakes – so there has to be some tolerance of making mistakes Reward action (so long as the means employed are appropriate). At another level, people are fearful that the metrics taken are incorrect or are the incorrect metrics – this can be addressed by senior management setting targets and for employees to be focused on achieving those targets. If the metrics / targets are incorrect, then senior management will need to take the blame. Leadership

Performance, Metrics and Management practices

Recent international studies (including the report - Management Development in Ireland: the report of the Management Development Council, February 2010) show that management competency / practices and corporate performance within the Irish Small and Medium sized enterprises (SMEs) lags significantly behind many of our European neighbours, including that of the UK.

Business research indicates a strong relationship between management development, management practices and bottom line / business performance and productivity. In particular, the research showed that a single point improvement in a firm's management practices score is, in terms of impact on company output, equivalent to a 25% increase in the labour force or a 65% increase in invested capital.

The studies involved analysis of management practices in the areas of Operations / Lean Management, Performance Management, Target / Goal Management and People Management. Ireland's score was quite average, lagging significantly behind the global average and below Great Britain, while scoring ahead of Greece and Portugal, but below Poland and the other longer established member countries of the European Union.

Approx. 50% of the gap in the corporate performance score was due to management practices. The research also noted that key weaknesses for Irish business performance focused on the following areas:

Defining the right metrics / performance measures
Reviewing these metrics / performance measures
Addressing poor performance & performers

These studies provide Small Business with a useful basis for improvement work to Irish companies, notwithstanding the need to accommodate a particular company's own individual situation.

Measurement / Metrics

"Measurement is management" goes the well known adage. To what extent do we continue to "muddle along"? Does staff know what is expected of it? Do you celebrate good performance? Do you address poor performance? Are you drifting? Competition is keen, and you must know what you are about everyday and if corporate performance is not up to scratch, if you do not know how to correct this, then you company is in danger.

Bridging the Knowing to Doing / Acting Gap

It sometimes happens that in spite of good information, companies are slow to act. At an individual level, replicated at a corporate level, there can be the tendency to think that knowing something does not lead to doing something about it (eg. DIY books). Again at an individual level, the best examples of doing something about "it" comes from the sporting arena, such as golfers. What to do at corporate level?

At some point in time, people have to make decisions and act in spite of the fear / risk of making mistakes – so there has to be some tolerance of making mistakes
Reward action (so long as the means employed are appropriate).
At another level, people are fearful that the metrics taken are incorrect or are the incorrect metrics – this can be addressed by senior management setting targets and for employees to be focused on achieving those targets. If the metrics / targets are incorrect, then senior management will need to take the blame.
Leadership