ABSTRACT

Learning from mistakes encourages people to experiment and innovate. Double loop learning goes beyond solving the symptoms and problems; it changes the nature of the problem. For innovation to occur people need to reward those willing to take risks and promote learning that is built on potentials and innovative thinking. This chapter examines whether performance management process is individually based or team based. It shows whether the organization is close to certainty or far from certainty, and considers its impact on the performance management process. Customer focus lying in the area of close to certainty and agreement is customer needs. However, tension arises because flexible approaches are needed to provide them. In other words, extraordinary leadership is necessary to deliver certainty to customers. The chapter discusses the mix of qualitative and quantitative measures of performance. The choices made will impact upon the organization in its pursuit of its vision and values.