Strategic planning is a process that involves describing the organization’s destination, assessing barriers that stand in the way, and deciding how to move forward. The mere presence of a strategic plan does not guarantee that this information will be used effectively as part of the performance management system.

One way to formalize the link between strategic planning and performance management is through the implementation of a Balanced Scorecard. In a nutshell, a balanced scorecard involves creating indicators of individual performance along four separate “perspectives” of an organization’s success. To be most useful and impactful, an organization’s performance management system must rely on its strategic plan.

Job descriptions, which serve as roadmaps for what individuals are supposed to do and what results will be produced, must be aligned with the vision, mission, objectives, and strategies of the organization and unit. The HR function can play a critical role in creating and implementing the strategies that will allow the organization to realize its mission and vision.