Performance management can help a company improve nearly any aspect of its business by connecting people and processes across functions and information systems, offering them more complete information than they can get from their local systems. In particular, Ventana Research has seen it applied successfully to the functions of operations, finance and information technology.

Performance management need not involve a large-scale implementation that takes a long time to implement with the aid of highly paid consultants. Rather, it can be a series of precisely focused, incremental steps that align people, processes and systems with corporate goals.

A performance management initiative can be mandated from the top down or the bottom up. Executives need not take a hands-on role, but they must make it clear that they support the initiative and expect everyone involved to participate and to comply with its requirements. The most crucial challenge to achieving performance management lies in changing company culture and methods.