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Why is Performance Management so important now for accountants, solicitors and other professional practices?

As the recession comes to an end Professional Practices will be faced with delivering a high level service to clients who have had to cut back in order to survive, as well as operating in a climate of an even tougher regulatory regime.

Clients will not be prepared to pay fees for over-priced, poor performing professional services. This means that service providers will need to be seen as running an efficient business with high performing staff in order to justify fees for these services, and compete against other providers.

The most important driver in this quest will be the clear communication of the firm's strategy and values, and the management of the performance of its staff (Performance Management).

Whilst many Professional Practices already run Performance Appraisal Systems these are likely to be paper-based and prone to the problems that paper-based systems deliver such as poor take up, unavailability of data and out of date records.

It is highly achievable for Professional Practices to benefit from the advantages of good Performance Management, such as:

• communicating the firm's goals
• aligning staff performance to these goals
• providing honest and accurate feedback on the performance of these individuals
• underpinning decisions on pay/bonuses

However, it is likely that they will need to consider a technology-aided process to sit alongside other computer assisted solutions that already form part of running a successful business.

Web-based Performance Management Systems (such as DINAMIKS from IKDevelopments Ltd) are inexpensive to purchase and quick to implement as there is no software to implement and no impact on existing hardware, just the ability to access the Internet.

Overall, if Professional Practices introduce efficient Performance Management systems they will experience:

• Clearer target setting
• More regular monitoring of progress
• More effective discussions on staff performance
• Better understating between staff and their Managers of performance requirements.
• The opportunity to incorporate CPD evidence into the Personal Development Plans in order to avoid duplication of record keeping and provide visibility of progress achieved to date.

This will help firms compete successfully as service quality and efficiency become even more important to clients alongside technical knowledge and capability.

Author: Malcolm Jones (FCIPD)
Published: 05/02/2010