Framework & Introduction to Strategic Planning and Control


Performance management is all about the development of people within an organisation. It is concerned with how a business establishes effective systems to enhance the performance of individuals or teams.

Performance management will consist of:

Measurements – A business will have to establish the areas in which they want to develop people and how they intend to develop people. In addition, a criteria has to be set in order to determine if development targets have been achieved.

Appraisal – The business then, has to asses the current performance level of individuals with the organisation against the desired performance level in order to identify the level of input required into the development programme.

Action – Once the gap has been identified, the organisation can implement a plan to effectively develop people in the desired area.

Monitoring – Finally, the effectiveness of the new performance measures have to be assessed and analysed to check if they are working and are actually making a difference. This is a very important stage but also challenging as success of the performance measures have to be based on something and this is usually non-financial rather than financial.

Although performance management is an important part in developing people, Note that it is very difficult to assess how measures have actually improved people performances because a business will have to decide what it will base success on. For example, a business experiencing an increase in sales whilst implementing performance management processes may find it difficult to assess how the performance of people influenced the sales or whether other activities influenced the increase in sales.

Swot Analysis  

The SWOT analysis is a strategic planning tool which summarises the key issues from the business environment and the strategic capability of an organisation. This can be used as strategy development and as a basis against which to generate strategic options and assess future courses of actions.

  • STRENGTHS: What we are good at.
  • WEAKNESSES: What we are not so good at.
  • OPPORTUNITIES: Favourable events trends.
  • THREATS: Unfavourable events trends.

The primary aim is to identify the extent to which the current strengths and weaknesses are relevant to and capable of dealing with the changes taking place in the business environment.  If the strategic capability of an organisation is to be understood the SWOT analysis is only considered useful if it is comparative, and not absolute to its “competitors” or other organisations, i.e. examining strengths, weaknesses, opportunities and threats relative to competitors.

The SWOT analysis focuses on future choice and the extent to which an organisation is capable of supporting these strategies. In order for the SWOT analysis to be effective, it has to be open and honest whilst prioritising the important areas to the business.