EPM: Beyond EIM

EPM: Employee Performance Management

A decade before Enterprise Incentive Compensation Management (EIM or ICM) software began to grow in popularity, Strategix was collaborating with its clients to create goal-based enterprise-wide (not just sales) employee performance incentive and recognition programs, and creating software and outsource services to automate them.

Since the mid-1980’s, we’ve learned that automating incentives alone is usually a recipe for problems, worsening pre-existing internal business process mis-alignments.

Incentives are an element, and not even the most important element, of a broader strategy-driven Employee Performance Management (EPM) process.

Strategix pioneered EPM in 1990, after observing the counter-productive effects of ill-conceived, non-integrated, out-of-control, and difficult to manage automated incentive compensation programs.

What Works and What Doesn’t

Over the years, we’ve seen too many software and consulting vendors not staying in business long enough to see, and experience, the results of their recommended solutions. The insights gained from our long-term working partnerships with clients as their incentive automation vendor, has given Strategix a unique perspective on “what works, and what doesn’t” in strategy execution and performance improvement.

What doesn’t work is to automate wrong strategies, poor processes, and bad incentive plans: “EIM”. Even “good” incentive plans, when automated in isolated non-integrated ways, have negative effects on employee morale, confidence, and workforce performance.

What does work is to combine broader performance planning, management, and reward programs that align both management-to-employee, and employee-to-customer performance objectives, deployed via state-of-the-industry technologies: “EPM”.

Strategix Performance: EPM Pioneer

EPM is a business approach that applies the same process, procedure and technology rigor, consistency, and universality to workforce performance as organizations now apply to Financial Management and Accounting.

EPM’s objective is to create a coherent and comprehensive environment within which a workforce can thrive and optimize for the benefit of all stakeholders. Some call this “Human Performance Improvement”, or simply Human Resource Management, but, in fact, neither of those approaches encompass the broader street-level realities of linking strategies, customers, managers, the workforce, technologies, and business processes that are addressed by EPM.

EPM includes not just software, but integrated strategy development, and business process integration. Not just “What” to do, but “How” to do it.

EPM includes not just automating incentives, but also goal-setting, performance planning, coaching, testing, performance assessment, sales and service activity management, recognition programs, team and management override reward programs, and paperless real-time universal performance reporting. And, not just for sales, but across all lines of business, from the “front-line” to the “back-office”, from the “bottom” to the ”top”.

Where EIM addresses one volatile and often unpredictable element of workforce management, EPM provides a broader, deeper, more legitimate, and infinitely more successful solution for improving employee performance and organizational results.

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