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# Why Managing Performance Matters
- URL: https://www.menicucciassociati.com/limportanza-di-gestire-le-performance/
- Published: 2017-03-21T20:09:40.000Z
- Updated: 2025-09-30T15:46:28.000Z
- Description: Performance Management — that is, managing performance and results — is important because...
- Author: Brunello Menicucci
- Tags: #Migrated-1722007832435, #bmenicucci, #Import 2024-07-26 15:30

**Performance Management** — that is, managing performance and results — is important because it:

- keeps you informed about how the business is doing
- supports decision-making
- helps implement strategy by actively involving the entire organization

Every company ultimately has the goal of **making money**, or more precisely, ensuring adequate returns over time for owners and stakeholders. To do this, it must combine **effectiveness and efficiency** — that is, **doing the right things and doing them well**.

- **Doing the right things** means aligning everyone in the company with the vision, mission, and values that guide every activity.
- **Doing things well** means maintaining a **triple balance**: economic, financial, and asset-related.

Naturally, achieving and maintaining this balance is **complex**, relying on a continuous cycle of **planning, execution, monitoring, and adjustment**. Ideally, companies would create an environment where information is **shared and accessible**, creativity and innovation are encouraged, governance is based on **clear objectives, values, and boundaries**, resources are available when and where needed, and control is based on **key market and competitor-driven indicators** rather than internal negotiation.

Clearly, adopting a proper **performance management system** allows constant monitoring of both financial and non-financial goals — such as **customer satisfaction, number of complaints, or the percentage of orders shipped within X hours**.

In short, it’s about **organizing the company to navigate today’s turbulent, hyper-competitive markets** and increase the chances of success. But how many companies do you really know that operate this way?

To learn more, leave a comment or **contact us for a free preliminary consultation**.