The Performance Management Epidemic

By all accounts, performance management is more popular than ever.  As an example, just a few years ago there were only three or four conferences dedicated to the topic.  So far this year, I’ve already been to more than 10 and the conference season doesn’t even get into full swing until later this month.

Why the extraordinary rise in popularity?  As an unabashed proponent of performance management, I’d like to chalk it up to the fact that stories of organizations dramatically improving their performance have inspired others to follow suit.  Gary Cokins has another theory.  He attributes the spread of performance management to the rise of social networking. With technologies like blogs and wikis, word of mouth travels more quickly than it did in the past.

It is an interesting idea but it doesn’t explain why performance management specifically has grown more popular while other related topics – like profitability analysis or risk management – still languish in relative obscurity.  Personally, I think it has more to do with the people spreading the word than the mechanisms that they are using.  Using the categorizations that Malcolm Gladwell popularized in The Tipping Point, performance management has moved beyond a few charismatic “salesmen” and is now firmly rooted in the “connectors”, causing a small world phenomena.  The bloggers may serve as “mavens” making sure that the vendors and consultants’ claims aren’t too overly exaggerated but the source of the epidemic is the adoption by well-connected influencers.

Performance management may not yet be a social epidemic but it definitely seems to be reaching its tipping point. 

2 Responses to The Performance Management Epidemic

  1. Timo Elliott says:

    It’s an interesting question, but isn’t it just the result of the typical bell-curve of a maturing technology industry, rather than anything to do with social media?
    (1) BI/PM has grown to be a multi-billion dollar industry
    (2) Industry consolidation has meant “MISO” (Microsoft, IBM, SAP, Oracle) customers are now hearing about BI at the headline level
    (3) Strategic integrators such as Accenture and Cap Gemini have identified the market as one of their next key growth areas
    Over the last decade or so, RDBMS and CRM went through similar trade-show growth spurts, even without bloggers…

  2. Jonathan says:

    Timo: Your point and mine aren’t that different. Gary’s post implied that PM took off due to blogging. This seemed odd to me and wondered if it’s taking off because of who is pushing it. People that others trust. Connectors. Whether it’s MISO or SIs, it’s people that are well connected.

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