Change occurs when organizations look at things in a different manner. The environment is conducive to change when organizations see performance management differently. Performance management enables change. There is nothing more difficult than to lead change as there are management systems that change, and, there is a resistance to change. Measurement is related to rewards, and, security. Leaders benefit even from a dysfunctional reward system.
Leadership is significant in case of transformational performance management. Personnel must do things different from routines. Existing measurement practices may be deeply entrenched.
Change from customer satisfaction, to, customer loyalty is difficult for a leader. They must create an environment conducive to metric measurement change. Organizations have competent data crunchers. Only measurement leaders, can create an environment for right questions, and, right information. This information can be used to generate wisdom, and, knowledge. The culture of an organization can be changed by changing the behaviour of its leaders.
Leaders should see reality, perceive the need to change; they should mobilize the appropriate responses. Performance management involves technical measurement, embedded in social, and, organizational environment. Leaders should create a leadership vision. They should avoid measurement program mentality, and, implement systemic changes. Leaders should be sensitive to measurement experience.
Examples of such leaders are Michael J. Critelli; Bob Galvin, CEO, Motorola; Jack Welch, CEO, GE.