Establishing a company performance management system is a significant undertaking. HR practice leaders have grappled with this issue for decades, and academic and professional journals contain a plethora of ideas and approaches on this subject too numerous to count. Clearly, there is no one-size-fits-all solution for any organization. Each organization is unique and must find its own niche in the marketplace. However, most would agree that whether our organizations are large or small in revenue or in human capital, there are certain fundamental criteria that could apply equally. This article discusses certain “critical success factors” that every organization interested in getting it right from the start may wish to consider when formalizing a performance management system.

This article is a reprint from the March 2007 issue of HR Magazine.