Deloitte OPM: Analysis, Recommendations & Implementation Issues

This report provides a comprehensive analysis of the organizational performance management (OPM) system at Deloitte, a multinational professional services firm. It begins with an overview of Deloitte, including its history, services, and organizational structure. The report then delves into the existing OPM system, examining its components such as performance measurement, communication of performance to stakeholders, risk management, quality management, financial performance, customer and client perspectives, people perspectives (HRM), and implementation issues. The analysis highlights the transition from an annual 360-degree performance review to a real-time performance management system. The report also assesses the impact of the OPM system on financial performance and risk management, referencing Deloitte's financial reports. Finally, the report concludes with recommendations for improvement, emphasizing continuous sensitivity and commitment to optimize organizational performance. This document is available on Desklib, a platform offering a variety of study tools for students.

Running Head: ORGANIZATIONAL PERFORMANCE MANAGEMENT
Organizational Performance Management
Name of the Student
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Author Note

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Executive Summary
The present report aims at analyzing the organizational performance management system in the
case organization that is Deloitte. The report analyzes the current OPM in the company and
makes recommendations informed by the pervasive characteristics of organizational performance
management. The report starts by giving an overview of the case organization. The report
proceeds with analyzing the existing organizational performance management system in the
consultancy case organization Deloitte. The analysis comes to an end by analyzing the risk
management, the financial performance, the customer and client perspective, the implementation
issues, the quality management and improvement and many others. The report concludes by
summing up the entire report.

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Overview of the Company.......................................................................................................2
The organizational performance management.........................................................................3
The analysis of the existing performance management system...............................................4
The organizational performance management and performance measurement......................4
Communicating performance to stakeholders.........................................................................5
The Risk Management.............................................................................................................5
Quality management and improvement...................................................................................6
Financial Performance.............................................................................................................6
The customer and client perspective management..................................................................7
The people’s perspectives management..................................................................................7
Implementation Issues.............................................................................................................7
Recommendations............................................................................................................................8

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Conclusion.....................................................................................................................................10
Reference.......................................................................................................................................11

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Introduction
The organizational performance management is the process of ensuring that the resources
of a particular company are being used properly and fulfilling the ultimate goals of the company.
The performance management is commonly conducted for keeping track of the employee
performance and development (Ansoff et al. 2019). Every organization needs to have their own
unique performance management system in order to keep the organization in a cohesive bond. It
also determines whether there is a change required in the policy or the procedure.
The purpose of the present report is to deal with the organizational performance
management system in the case organization that is Deloitte. The report will analyze the current
OPM in the company and make recommendations informed by the pervasive characteristics of
organizational performance management. The report will start by giving an overview of the case
organization. The report will proceed with analyzing the existing organizational performance
management system in the consultancy case organization Deloitte. The analysis will be done by
analyzing the risk management, the financial performance, the customer and client perspective,
the implementation issues, the quality management and improvement and many others. The
report will finally end with the recommendation for the improvement and conclude by summing
up the entire report.

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Discussion
Overview of the Company
The full name of the company is Deloitte Touche Tohmatsu Limited that is a famous
multinational service network company. In terms of revenues and number of professionals it is
one of the largest professional service network firm. The company was founded in the year 1845
in the United Kingdom by William Welch Deloitte. The headquarters of the company is located
in London, United Kingdom. The services of the company are tax, audit, management
consulting, risk advisory, legal advisory and financial advisory too. As per the reports of 2018,
the revenues of the company are US$ 43.2 billion and there are 286,200 people working in the
company. In India, the company operates under many names such as A.F .Ferguson Associates,
C.C. Choksi & Co, Fraser & Ross and many others. It has been fund that for many year the
network od the organization and the organization itself were managed as a Swiss Verein
(Deloitte.com 2019). In the year 2010, the members of the verein became part of the Deloitte
company, a private limited company based in UK. The company is registered under the NAIC
code 55112.
The organizational performance management
The organizational performance is primarily determined by the performance of the
employees. It can be evaluated by monitoring the way the employees are working. Most of the
organizations manage it by setting goals, sharing the feedbacks with the employees and
measuring their performances (Kenny and Bourne 2015). The organizations also need to either
rewards the employee for the better performance or fire the employee for underperforming.
However, it has to be kept in mind that the organizational performance management is applicable
to the teams or the organization as a whole too (Mone and London 2018). The organizational

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performance covers the specific areas such as goal setting, monitoring of the progress and
making suitable adjustments for achieving those goals efficiently. It mostly depends on the
performance of the leaders and the mangers and how they operate.
The Deloitte company has redesigned their performance management system after
realizing that their current OPM process was going out of step with their objectives. At a point of
time, a survey revealed that the organizational performance management system of Deloitte had
neither high performance approaches nor employee engagement to the most. They realize that
they were in need of something that is individualized and real time based, something that would
be focused on uplifting the performance in future. The company has come up with a newer but
simpler organizational performance management system.
Image 1- The old and new performance management system in Deloitte
Source -(Deloitte.com 2019)
The above picture depicts the old versus new performance system in Deloitte.
Previously, the company used to follow the annual 360 performance review. It is a special

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feedback opportunity that supports a group of colleagues to give feedback about a particular
employee. They are supposed to report to the manager whom that employee also reported to. The
organization used to adopt various methods to seek feedback from the employees. The
procedures depended on the climate and culture of the organization. Deloitte also hired
consultants for administering the surveys. However, the process was being difficult for the
company to manage. They found this process to be inadequate to their company as it appeared
less honest and required more filtration. It created mis-understandings instead of the fact that the
purpose of feedbacks is constructive and not personal. Hence, they incorporated the real –time
performance management. It is a management practice which evaluates the performance
management in real-time. They found this measure to exploit the current market and improve
the business agility properly. The ratings of each person are discussed in a consensus meeting
(Van Dooren, Bouckaert and Halligan 2015). The employees by this strategy are helped by being
capable of looking at the gaps and work on it in future.
The analysis of the existing performance management system
The organizational performance management and performance measurement
The objectives for the employees are set at the beginning of the year. After a particular
project finishes, the managers of the person rate him /her based on how well the objectives were
dealt by the person. The managers also comment on the excelling performance of the employee.
These comments are counted at the end of the year rating of that person. The ratings of each
person are discussed in a consensus meeting (Van Dooren, Bouckaert and Halligan 2015). The
employees by this strategy are helped by being capable of looking at the gaps and work on it in
future. The new performance management system of the company is speedy, accurate and
enabling the constant learning process.

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Communicating performance to stakeholders
The organizational performance management system of the company enables the
communication of the performance to the stakeholders (the employees in this case) via the
feedback system. The internal feedbacks are conducted and the people of the company support
the predictability of this process. Each employee has his /her counsellor and the performance is
discussed by the counsellor at the actual moment of performance. It is more effective than the
year –end rating and feedback system. The new system in the company enables the employees to
correct the errors right at the moment (Kenny and Bourne 2015). When the performance of the
company goes completely down, it communicates tat with the stakeholders such as the investors,
customers, suppliers and assures them that they will get over the condition soon.
The Risk Management
This new system of rating the employees and giving feedbacks right at the moment has
reduced the risk of having underperforming or rather opposite performing employees in the
organization. The failure of identifying which employee is actually working and which employee
is just exploiting the resources of the company can now be easily evaluated. This process has led
the company to promote talent refinement in the organization. Moreover, the company has fund
that the yearly time consumption in the holdings of meetings, completing the forms, leaders
‘discussion and speeches is 2 million hours. This company can now utilize that saved time in
something more important.

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Image 2- Performance management system
Source - (Kenny and Bourne 2015)
The above picture well elaborates the different stages and parts of a performance
management systems along with the goals. Any performance management system consists of
four step. Firstly, the strategy or method by which the performance will be evaluated has to be
defined. and planned too. Next it has to be aligned to the goals and objectives of the
organization. The execution is an important part as upon it the entire result is dependent. After
the execution, the results should be analyzed and reviewed. Then the refinement should be done
and according to that the changes must be made. The purpose of the performance management
system in any organization is to formulate the strategies, execute the strategies, analyze the
performances and optimize the organizational performance continuously.

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Image – Risk analysis report of Deloitte
Source – (Www2.deloitte.com 2019)
The picture attached has been collected from the financial reports of Deloitte. It is a
useful document that tracks the financial instruments and risks. Notably, the capital structure of
the company is regularly monitored. In is apparent that in the financial year 2016-17, the
financial liabilities were 1,096 .8 whereas in the year 2017- 18, it increased to 1,197. 2. The trade
payable of the company also increased from 83.0 to 148.2 that is high. Added to this, the
financial liabilities were high in the previous year but decreased later. In such conditions, it
became necessary for them to remodel their performance management system.

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Quality management and improvement
The company has understood the inconsistency of the skills assessment of someone in the
organization. The quality management of the company is done by understanding the performance
at the individual level. Hence the responsibility of evaluating and managing the quality is given
to the immediate team leader. The working mentality and perspectives of the teams are
heightened. They are made to believe that their strengths and capabilities are the strengths of the
company they are called every day to perform in the best possible way. The OPM of the
company helps their people to use their strengths in the workplace.
Financial Performance
The financial performance of the company is managed by preparing the inventory
records. The investment on machinery, raw material and equipment are kept recorded in the
inventory records. It tells the company about how much stock has been purchased. In case any