Performance management refers to the systematic management of desired outcomes by an organization. The Top 10 performance management gaps are reviewed.

1. Gap 1Missing Key Performance Indicators (KPIs) Organizations do not measure all leading, target, and lag indicators related to strategy and business goals.

2. Gap 2Silo Assessments Assessments are often separate from each other (e.g., organizational health assessments, engagement assessments, performance assessments).

3. Gap 3Lip-service to Evidence Organizations measure Key Performance Indicators (KPIs) but fail to leverage the insights, often relying on parallel approaches divorced from KPIs to determine company direction and actions.

4. Gap 4Closed Book Management Organizations are reluctant to, or don’t know how to share information with employees. Open book management (sharing information with all stakeholders) is important.

5. Gap 5Improper Measurement & Analysis Many organizations do not properly measure perceptual variables (i.e., attention to validity and reliability) and do not analyze results in appropriate ways.

6. Gap 6KPIs are not Actionable Official goals are not translated into operational goals (i.e., Key Performance Indicators; KPIs) that are actionable.

7. Gap 7Narrow View of KPIs Organizations typically view KPIs as objective data (e.g., profitability), but find it difficult to quantify qualitative business drivers (e.g., employee engagement).

8. Gap 8Static KPIs Key Performance Indicators (KPIs) are developed once and fail to evolve to match changing needs and new knowledge.

9. Gap 9Incomplete Performance Systems Organizations embark on performance management initiatives that are not inclusive of all needed activities.

10. Gap 10Acting Like Ancient Astronomers Stonehengers could predict, but not explain star movement. Later, Copernicus developed an explanation of the universe that placed the sun at the center leading to better predictions. Better scientific explanations lead to better performance predictions.