Performance management is a systematic process used to monitor and improve the performance of employees within an organization.

It consists of several stages, including. goal setting, performance evaluation, training and skills management. Performance management aims to create a culture of excellence and develop employees’ skills, thus improving their efficiency and their ability to contribute to the success of the organization.

Performance management relies on constant communication between employees and their managers, and uses a variety of tools to measure and evaluate employee performance.


What benefits are gained from performance management?

The three main benefits gained from performance management are:

  1. Performance improvement: performance management allows employees’ performance to be continuously monitored and improved, increasing their efficiency and ability to contribute to the success of the organization.
  2. Competency development: performance management enables the identification of the competencies that employees need to develop to achieve the organization’s goals and provides them with the training and resources to do so.
  3. Communication and feedback: performance management is based on constant communication between employees and their managers, enabling them to receive constant feedback on their performance and to work together to continuously improve the organization’s performance.
  1. According to a 2021 study conducted by Deloitte, companies that use gamification in their performance management system are more likely to increase employee motivation and satisfaction than those that do not. (Source: Deloitte, “The Impact of Gamification on Performance Management”)
  2. A survey conducted by Gartner found that companies that use gamification in their performance management system are more likely to increase employee productivity than those that do not. (Source: Gartner, “The Impact of Gamification on Performance Management”)
  3. Another survey conducted by KPMG in 2021 found that companies that use gamification in their performance management system are more likely to increase employee retention than those that do not. (Source: KPMG, “The Impact of Gamification on Performance Management”)
fidelizzazione dei dipendenti grazie ad un programma di formazione per il personale

How to properly create a performance management project

  1. Set goals: it is important to establish corporate and individual goals in a clear and measurable way to ensure that all employees know exactly what is expected of them and how their efforts contribute to the success of the company.
  2. Identify key metrics: it is important to establish key metrics to measure the success of established goals so that progress can be evaluated and changes can be made if necessary.
  3. Provide continuous feedback: continuous feedback is critical to improving performance and supporting employee professional development. It is important that employees receive both positive and negative feedback in a timely and constructive manner.
  4. Develop a training plan: it is important to provide employees with the resources and training opportunities they need to achieve established goals and develop their skills.
  5. Create an incentive system: create an incentive system to encourage employees to achieve set goals and reward employees who have excellent performance.
  6. Monitor and evaluate progress: finally, it is important to monitor and evaluate employee progress to identify problems and make any changes to the performance management system.
Performance management circle project

What methodologies to use for a performance management project?

The OKR (Objectives and Key Results) and KPI (Key Performance Indicator) method are closely related in a performance management project because both are used to monitor and improve the performance of employees within an organization.

OKR example in a performance management project


OKRs (Key Objectives and Outcomes) and KPIs (Key Performance Indicators) are two important tools that organizations use to manage performance and achieve their goals.

Here is a description of how these processes work:


Objectives and Key Results (OKRs) are a framework for goal setting that allows teams to align their goals and strategies and track progress .

The process begins with setting clear and measurable goals that are aligned with the overall goals of the organization.

Then, for each goal, specific key outcomes are identified that must be achieved in order to successfully achieve the goal. These key outcomes are monitored over time, and progress is measured regularly.

KPI example in a performance management project

Here are some examples of OKRs

  1. Goal: Increase sales by 20 percent by the end of the year.
  2. Key Result: Increase website conversion rate by 10% within 6 months.
  3. Goal: Improve customer satisfaction by 15 percent by the end of the year.
  4. Key Result: Reduce customer complaint rate by 10% within 6 months.
  5. Goal: Reach an active user base of 100,000 by the end of the year.
CTA Caso studio Performance management per Retail Bata, intervista Country manager Paolo Grassi


Key Performance Indicators (KPIs) are metrics used to assess the performance of an organization, team or individual in achieving specific goals.

These metrics are usually quantifiable and include things like turnover, sales, customer satisfaction, and employee engagement. Organizations use KPIs to measure progress and identify areas where improvement is needed.

Here are some examples of KPIs

  1. Conversion rate: The number of website visitors who complete a desired action (e.g., make a purchase, fill out a contact form, sign up for a newsletter) divided by the total number of website visitors.
  2. Average customer response time: The average elapsed time from receipt of a customer service request to the time when the response is provided.
  3. Churn rate: The number of customers who discontinued their use of the service or product divided by the total number of active customers.

Performance management

Performance management is the process of evaluating and improving the performance of employees, teams, and organizations. It is a continuous cycle of planning, monitoring, evaluation and performance development.


The process begins with setting clear and measurable goals, also known as objectives, for employees, teams and organizations. These goals then are associated with key performance indicators (KPIs) that are used to track progress .

Feedback is provided to employees on their performance and progress, and employees are given the opportunity to improve their performance. Finally, performance is evaluated and rewarded, which helps motivate employees and improve overall performance.

When it comes to OKRs, KPIs, and performance management, it is important for organizations to keep in mind that these tools are not separate entities but rather three parts of a larger performance management system. OKRs are used to set goals, KPIs are used to track progress toward those goals, and performance management is used to evaluate and improve overall performance.

The OKR, KPI and performance management process should be viewed as a continuous cycle that is iterated regularly to ensure that employees, teams and organizations are continually moving toward achieving their goals.

OKR VS KPI in un progetto di performance management

So what is the difference between OKR and KPI?

OKRs (Key Objectives and Results) and KPIs (Key Performance Indicators) are both tools used to measure business success and performance, but they have different purposes and uses.

OKRs are used to define long-term goals and key outcomes to achieve them, so that the entire organization works purposefully toward the same goals.

OKRs are generally more ambitious and long-term than KPIs.

KPIs, on the other hand, are used to measure progress toward long-term goals and provide detailed information on how the organization is performing in specific aspects of its business.

KPIs are generally more specific and short-term than OKRs.

In summary OKRs are the long-term goals, while KPIs are the indicators to measure progress toward the goals.

Do you want to know in detail the ROI achieved by a performance management project? elaborate on the case study here.

CTA-caso-studio-Bata-retail-omnichannel -project-gamification

How to introduce a performance management project into an organization?

Change management is a process that helps companies manage and implement significant changes within the organization, such as the introduction of new technologies or work methods.

It is important because it helpsensure that change is accepted and adopted effectively by employees, thus improving the chances of successful innovation.

Before implementing a new technology or work method, it is important to create a change management plan that covers all phases of the change process, from planning to communication, from training to resistance management.

During the planning stage, it is important to identify the goals and expected results of the innovation, as well as potential obstacles and solutions to overcome them.

At this stage, it is also important to involve employees and get their feedback and support for innovation.

During the communication phase, it is important to provide clear and timely information to employees about the innovation and its impact on their jobs.

It is also important to create two-way communication channels so that employees can ask questions and provide feedback.

This process will then allow bottom up communication and no longer top down communication by making decisions immediately shared.

During the training phase, it is important to provide employees with the knowledge and skills needed to use the new technology or work method effectively.

Finally, during the resistance management phase, it is important to recognize and manage any employee resistance or concerns about innovation and find ways to overcome them.

In summary, creating a change management plan prior to implementing a technological innovation in a company helps to ensure that the change is accepted and adopted effectively by employees, concretely improving the innovation’s real chance of success.

How to involve employees in a performance management project

Co-design is a participatory design process in which employees are actively involved in defining and developing change within the organization. Actively involving employees in a co-design process helps them feel part of the change and develop a sense of ownership and responsibility for the new method or technology.

Co-design work tables are a great tool for engaging and motivating employees in change. They allow employees to express their ideas and concerns, and to help set goals and solutions to achieve them.

This will make employees feel involved and heard, and they will be more motivated to adopt and adhere to the change.

In addition, by involving employees in the design of change from the outset, potential problems can be identified and resolved before they occur, and solutions can be developedthat actually fit the needs of employees and the organization.

This will increase the chance that the change will be accepted and adopted effectively by employees.

In summary, co-design is an important methodology for engaging and motivating employees in a change within an organization because it makes them participants and involved in the construction of the change, increasing their motivation and the possibility of successful change.

The performance management process then based on people first is crucial as it allows employees to be actively involved in setting goals and evaluating their performance, increasing their acceptance and motivation, giving the project itself a real chance of success.

co-design-in-omnicanalità- project- con-la-gamification

How to implement a performance management project with gamification

Employee experience platforms, in addition to supporting performance management processes such as goal management, performance appraisal, and competency management, can also use gamification modules to make the technology “self-implementing” and further support change management over time.

Gamification in Workspace per ingaggiare di dipendenti, gestire la people analytics

Gamification is the use of game mechanisms, such as points, rewards and leaderboards, to motivate employees to achieve goals and adopt new behaviors, so we are not talking about play but mechanisms based on stimulus and reinforcement capable of create a sense of continuity in the employee by realizing the desire to see their activities completed and rewarded.

In this way, employee experience platforms can make learning and adoption of new technologies and work methods more fun and engaging, increasing employee motivation and participation.

Gamification e gestione reti di vendita: cosa succede

In addition, gamification can also help create a culture of healthy competition among employees, which can motivate them to improve their performance and overcome obstacles.

Would you like to elaborate in detail How to break down any barriers to innovations with change management? Read the complete guide here!


In summary, employee experience platforms using gamification can perform much better than traditional platforms because they can make the technology inductive through its ability to differentially stimulate the user by supporting further change management over time, improving employee motivation and participation and creating a positive culture in the organization.

What change is to be achieved in the employee in a performance management project?

Performance management is a fundamental process for helping employees reach their full potential and contribute to the success of the company. It starts with the onboarding phase, where employees acquire the knowledge and skills they need to do their jobs effectively. During this stage, employees learn about the company culture and values, as well as the company’s expectations and goals.

Next, the performance management process helps employees achieve a high level of engagement, where they feel motivated and involved in their work and the company’s results. This is possible through continuous feedback, training and professional development opportunities, and recognition of outstanding performance.

Over time, employees can become leaders within the company, taking an active role in defining and implementing company strategies and helping others achieve goals. Finally, the most experienced and committed employees can become true ambassadors for the company, representing it in a positive way inside and outside the organization.

Employee engagement e people analytics, coinvolgimento dei dipendenti

BPM Business process modeling: the secret weapon of a long-term performance management project

Next-generation employee experience platforms must be able to follow the organization and adapt to its specific needs.

To do this, they must be able to manage the easily governed modeling process of the company’s own managers.

employee experience platforms are the ideal tool for managing performance management projects because they automate and simplify performance appraisal processes and improve employee communication and engagement.

Do you want to explore the topic further? read the ultimate guide to employee experience here.


Business Process Modeling (BPM)-based method is a methodology that allows business processes to be graphically represented , easily programmed with drag-and-drop mode, and equally analyzed for performance with dashboards that are simple but made precisely for readability.

A state-of-the-art employee experience platform must be able to support this method and provide tools for configuring and modeling business processes in a way that is easily understood by management.

Want to learn more about BPM Business Process Modeling, explore the article here.

BPM -modellazione-digital-cloud-software- employee experience-platform

In this way, management can generate a continuous improvement process based on the implementation, verification of data and implementation of corrective actions on the project si performance management . This enables the organization to continuously adapt to market needs and continuously improve employee performance.

In summary, next-generation employee experience platforms must be able to follow the organization and adapt to its specific needs, Supporting the modeling process easily governable of the managers themselves of the company, through the BPM method, so as to generate a continuous improvement process based on implementation, data verification and implementation of corrective actions.


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