1. Using the stages from the performance management process, suggest the key processes that DSM needs to provide within its system in order to successfully link its key success factors (KSF). Provide a rationale for your suggestions.
Dutch State Mines (DSM) originated in 1902 as a state owned mining company. The company has continued to evolve from petrochemicals business to a commodity chemicals business and now a specialties company. Its current fields include health, nutrition, and materials with a net worth of $9 billion annually. Similar to many other organizations that have withstood the test of time, DSM endured constant reinvention and up until the early 90s operated a traditional strategic planning process that included planning and budget cycles. Eventually this outdated process became too much of a routine and needed to be revamped. The company recognized that their strategic development was of poor quality, the link between strategy and performance wasn’t clear, and its strategies mainly focused on cost reduction. To enhance the quality of strategy development process, a new approach called the Business Strategy Dialogue (BSD) was introduced. This led to Corporate Strategy Dialogue (CSD) which proposed improvement of the corporate development processes. This initiative was part of the “Vision 2005: Focus and Value” campaign that was initiated to modernize the organization’s development processes to ensure alignment between strategies.
An effective performance management process links the goals and strategies of an organization to team and individual performance to be able to ensure an increase in the effectiveness of the organization and therefore being profitable. The following are the key processes of performance management that DSM should provide in its system to ensure that it successfully links its key success factors. Planning, this is the first