WDI has developed a formal system for managing and measuring executive/managerial performance called AIM®. It is a flexible system of performance management used to achieve strategic goals and improve operational performance by establishing and measuring executive/managerial performance against predetermined operational criteria. It can include executives and managers at all levels of the organization, from the CEO to department managers.
Many executive/managerial incentive systems fail because they are not linked to actual organizational performance, but rather they are linked to subjective criteria that are “process oriented” rather than “results oriented”. The AIM® system offers the following advantages:
- It can be linked to the strategic plan.
The corporation’s strategic plan can be made operational by the AIM® system.
- It is tailored to each leadership position.
The key accountabilities, measurement criteria, range targets, and weight values can be uniquely different for each executive/managerial position, based upon desired changes and/or current levels of performance.
- It is flexible and stands the test of time.
Situations and priorities change from one fiscal year to the next and, when they do, you can direct the performance and priorities of the entire management team by changing key accountabilities and/or changing the weight values. The AIM® system always reflects the current needs and objectives of the organization.
- It is the “missing link” to incentive pay plans.
Many incentive pay plans fail to achieve any real improvement in organization performance and end up simply rewarding for “status quo”. This happens when they omit the difficult task of implementing an effective performance measurement system that is linked to desired organizational operational improvements. By providing the “missing link”, the AIM® system “links” incentive compensation plans to actual operational performance.
- It simplifies the performance evaluation process.
The AIM® system makes the job of conducting annual performance evaluations much easier because it is a self-evaluating system that places the burden of performance measurement on the incumbent instead of the supervisor.
- It is objective.
Objective and documented performance evaluation criteria is the foundation of non-discriminatory decision making, and is the primary line of defense against costly employment litigation.