The definition of performance management (PM) has remained consistent since industry analysts Gartner Research introduced PM in 2001.

"Performance Management is an umbrella term that describes all of the processes, methodologies, metrics and systems needed to measure and manage the performance of an organization." (1)

Despite this stability in definition, Performance Management as a practice has evolved greatly since 2001.

Many companies from the Global 3500 and major public sector organizations have embraced the vision of PM. They understand the value of enabling and engaging everyone in an organization to manage the organization's performance. They are deploying technologies and solutions to make that vision real.

These organizations understand how PM can help them answer their fundamental business questions:

• How are we doing?
• Why?
• What should we be doing?

Scorecarding, business intelligence, and planning and consolidation technologies answer these questions. The questions connect; Performance Management requires they not be stand-alone elements. Knowing what happened, without finding out why, is of little use to the business. Knowing why something happened, but being unable to plan and make the necessary changes is likewise of limited value.