Hail to the Chief Performance Officer!

Wow, what a week! On January 7, President-elect Barack Obama appointed Nancy Killefer as the country’s first chief performance officer. It actually caught me by surprise. Typically we think innovation stems from the private sector and over time is accepted by the public sector. In this case we see the public sector taking the lead in an area that the private sector has been slow to accept.

You hear a lot these days about the bad economy. You also hear about companies going into a bunker mentality and hoping to survive rather than proactively managing the situation. Harvard Business Review benchmarked both approaches, and the results clearly favored companies that were proactive in their approach to managing through tough economic conditions.

The bottom line is that you cannot position your company for success if you don’t have a plan that is comprehensive and flexible, and that highlights the gaps in your budget as well as the reserves you have available. Performance management provides the catalyst for implementing such a process and gives you the ability to turn economic crisis into an opportunity, so your business can thrive.

Hopefully, the appointment of Nancy Killefer will have a number benefits:

· It should supercharge and excite those companies currently implementing a performance management process

· It should get the attention of companies considering implementing a performance management solution and serve as a wake-up call for those who don’t have performance management on their radar

· It should shake things up and formalize the performance management title/position for all government agencies (just think of the potential!)

For those who are new to the notion of a chief performance management office or officer, author Bob Paladino defines it in his book, "Five Key Principles of Corporate Performance Management." Included are case studies, key principles and best practices that provide a recipe for successful transformation into a continuous planning environment to create a strategically managed company. And the first step is putting someone in charge:

"The CPM [Corporate Performance Management] Office and Officer are at the center of the five CPM principles. Establishment of this office must be your enterprise’s first step toward formalizing CPM competencies in your organization." — Bob Paladino

If you are interested in learning more, please check out our book offer.