Four Point Performance System…
The Four Point Performance System is a strategic management system which aligns an organization’s daily work to the fulfillment of its mission by focusing on a powerful vision of the future.
The system consists of four steps which include: Vision Planning, Performance Analysis, Performance Planning, and Strategic Implementation. Each step provides a roadmap to maximize the impact and efficiency of an organization by using the answers to four primary questions as the foundation for change:
What do we want to achieve? OUR PURPOSE
What do we believe? OUR PRINCIPLES
What is most important? OUR PRIORITIES
How are we doing? OUR PERFORMANCE
STEP 1: Vision Planning
Longer term planning in social sector organizations often moves toward more people and programs, bigger budgets, and new facilities. During the Vision Planning session, you will answer the question, “Why do we need more, bigger, or newer?” Vision Planning defines what you want to achieve within the scope of your mission and values. Vision Planning is about the cause not the organization. It is not about everything, only the most important things. A vision will challenge and “stretch” an organization for 10 or more years as resources and activities are aligned to its accomplishment. A vision is an organization’s long-term commitment to individuals, communities, or society. Vision Planning starts with an affirmation of the mission followed by a clarification of an organization’s values. Strong visions are not built by consensus, they are built by leaders. A Vision Council of knowledgeable and committed volunteers and senior level staff clearly defines the future impact and scope of work to be accomplished.
STEP 2: Performance Analysis
Over 70% of organizational change initiatives fail as a result of poor execution. It is most important that leaders determine what changes are needed and what present structures must be removed or new structures added in order for an organization to realize its vision. This analytical phase of the process allows leadership to develop a set of specific outcomes that measure the progress toward achieving the vision. These Desired Outcomes are prioritized and reviewed with the current systems, practices, structures, market conditions, and external trends to identify the Performance Gaps that must be addressed. The closing of these performance gaps provides the foundation for the next step, Performance Planning.
STEP 3: Performance Planning
Performance planning requires a high level staff team to focus on the “how” of the work. Using the Desired Outcomes and Performance Gaps, the leadership team identifies the processes and methods (strategies) that must become core competencies. These competencies are the foundation for building an organizational culture aligned with the new vision. Key Performance Indicators are developed focused on quantitative and qualitative measurements with specific metrics to be achieved. A Performance Management Scorecard is used to focus on all aspects of the organization as it relates to Key Performance Indicators and Desired Outcomes.
STEP 4: Strategic Implementation
The progress of an organization’s movement toward implementing the Vision Plan is affected by external and internal forces which are unknown as the Vision Plan is being developed and strategies put into practice. It is important that a systematic process and integrated model are in place to identify new realities so appropriate strategic adjustment can be made. A Performance Management Scorecard complements the budget as a primary management tool and provides a holistic assessment of how the organization is performing in the major functional areas critical to success. A Performance Management Quarterly Review is used to measure and assess accomplishments on a quarterly basis, and Annual Reviews are also used to sharpen the vision and make adjustments to strategy accordingly.
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