Everyone talks about it but it is important to know what is defined as Performance.
Initially, this notion is often linked to the concept of competition. A result, a place, a time... obtained in a "race".
Even if the professional world is not a pure sporting field, it remains that the appreciation of performance is necessary at both the individual and collective levels.
This performance is based more on the notion of objectives to be achieved: it is therefore the degree of achievement of these objectives that must be appreciated.
We could then reduce the term performance in a company to its efficiency
A company is effective and therefore efficient if it achieves the objectives it has set for itself. However, its objectives must be well positioned when compared with those of the same market segment.
The efficiency of a company must be compared to its market sector in order to be on the same starting line. However, a company can arrive first on a given objective in its market sector and still be underperforming.
Why is this?
Because another angle of appreciation of this performance must not be forgotten, it is efficiency
, the ability to reduce the effort used to achieve the same objective.
It is therefore essential not to dissociate effectiveness and efficiency in order to understand performance within a company.
So how do you measure the performance of a company?
The method of assessing the performance of a company is based on the analysis of several indicators often called KPI
(Key Performance Indicators).
We are now entering the era of ratios with the notion of the relationship between the result obtained and the expected objective. This propels us back to the concept of efficiency alone. It is therefore important to think about the relationship between the result obtained and the means used.
Today, we are filled with clichés, conditioned reflexes and habits. Indeed, the performance of a company is most often limited to its financial performance.
Two other areas of performance must be taken into consideration : social performance and societal performance
It is the combination of these three dimensions that will determine the level of performance of a company. Today, it is this trio that makes sense in the eyes of the people who make up the company.
In terms of social performance
, among the many indicators, we can cite : the amount of remuneration, the number of work accidents, occupational diseases, the well-being approach, etc.
Societal performance shows the company's commitment to the environment, culture and humanitarianism. The tools of Corporate Social Responsibility
(CSR) are a way to improve performance in this area.
So become the actor of your performance by giving yourself the means to finance it, to build it, to control it.
My DSO Manager already opens the doors to your cash management, which is an essential source for the other two areas of societal and environmental performance.