Performance Driven Management (PDM)
Throughout the 1990s the commercial imperatives for value creation were reaching new levels. Stakeholders were demanding transparency and, at the same time, more return on their investment. This reached a critical point for Philips Electroncis in 1997. The strategic potential value of the organisation was not being unlocked and delivered.
The incoming Persident demanded an improvement in profitability. The resulting initiative addressed the Strategy Planning and Execution of the Group around the World.
Founder of Europartnership, John Shuttleworth, was a senior internal programme director with both business and IT-led change and a traack record of delivering challenging projects and programmes on time and in full.
He was appointed internal programme manager for what became known in Philips as the SCORE programme. He co-developed an approach to Corporate Performance Management and coached Senior Management and Board Directors in its implementation with significant and demonstrable increase in company value and Economic Profit Realised. Mercer Management Consulting were the external partners and published the approach though their links with Harvard Business School and Professor Adrian Slywosky.
Since leaving Philips in 2000 to form Europartnership, we have developed SCORE into a generic approach to strategy setting and planning. Clients have chosen their own labels for the approach and today it is know variously as Performance Driven Management (PDM) or Strategic Conversations programmes.
The PDM process takes teams from 'what' they need to do into... 'How' they will achieve it. The specific programme will work with the teams to build and document an integrated approach to planning leading to improvement in the service's overall performance increase understanding of the resource and financial consequences leading to improved monitoring, cost and business control the scope of the programme is to do this with short, medium and long term plans for the team.
The programme comprises a series of 3 workshops for a core team from your service and we advise invitations are made to key business partners and other relevant head office support disciplines.
The programme, Performance Driven Management (PDM), is based on a facilitated strategy setting process and has been developed by Europartnership UK Ltd as an integral part of their Performance Migration approach to moving to continuous improvement ways of working.
The shape of the PDM programme is outlined below. It is suggested that between 6 and 12 managers participate throughout the programme. The participants who make up the 'teams' would be drawn your the management team in focus - those that are ultimately accountable to deliver the full potential of their organisation and who will commit to that delvery in the ensuing linked business plan.
PDM was developed in the private sector. In the past five years PDM has been used within a number of local and central government authorities in the UK. Here, service level delivery and value-for-money replace wealth creation.
In both private and public sectors, PDM process forms part of the "performance migration" philosophy that assists organisation's with a successful path to continual improvement.
A focused PDM programme can be run as a taster session in a one day workshop. It can also be delivered in a 'fast track' timetable. However, experience tells us that taking too long will lose focus and momentum - and trying to move too quickly will reduce the quality of the outcome. PDM works consistently best when delivered over 3 months elapsed time.