Successful companies build a management culture round performance.
This simply means every manager measuring the performance of key issues under his/her control that have a direct effect on the overall performance of the company. These do not need to be just financial. Efficiency plays a big part also, and as it improves financial results benefit.
It is important to develop key indicators under the control of each manager that can be readily measured and are relevant to the efficiency and performance of the business. Targets can be then set and a process of continual improvement begins.
The CEO needs to drive this process to ensure that what is being measured is relevant, capable of improvement and important to the benefit of the business. Regular meetings should take place to table the information to ensure every manager can see how their performance is assisting the overall improvement of the business.
So Who benefits?
The company will achieve greater efficiency which will lead to improved financial performance. Motivated managers will breed a positive performance based culture within the business. Accountability for performance is shared by the entire management team.
The managers will gain more job satisfaction from directly being able to lift the performance of the business. It will improve confidence and skills. This equals better employees and a pipeline for future promotion within the business.