Building a Cascading Performance Management System
- Larry Cummings
- May 30
- 3 min read
Updated: Jun 14
Cascading Performance Measures: Linking Training to Business Outcomes
A Cascading Performance Management System (CPMS) connects training to business outcomes by aligning performance measures across all levels of the organization. It links:
Key Performance Indicators (KPIs) to strategic objectives
Process Performance Indicators (PPIs) to operational activities
Individual Performance Indicators (IPIs) to the application of skilled knowledge
This alignment creates a direct link between learning interventions and business performance, enabling a closed-loop feedback system that supports continuous improvement. By analyzing performance data, organizations can identify skill gaps and dynamically align training content with evolving job requirements—continuously enhancing workforce capability.
From Strategy to Execution: The Role of KPIs
Key Performance Indicators (KPIs) are quantifiable metrics that reflect an organization’s most critical business value drivers. When well-chosen, KPIs do more than measure performance—they actively shape it by directing focus, influencing behavior, and aligning efforts with strategic objectives.
Example1 – Strategic Level (KPI): Increase asset utilization across all facilities by reducing unscheduled downtime from 4–7% to 0.5% of total production within plan year XXXX.
KPI Identification: The SMART Framework
Effective KPIs meet the SMART criteria:
Specific: Clear and focused
Measurable: Quantifiable with objective data
Achievable: Realistic given resources and constraints
Relevant: Directly linked to business goals
Time-bound: Includes a defined timeframe for evaluation
KPI Prioritization
Not all KPIs are equally strategic. Prioritization should be based on:
Benchmarking against industry standards
Historical internal performance
This ensures that resources are focused where they can deliver the most impact.
PPIs: Operationalizing Performance
While KPIs track strategic outcomes, Process Performance Indicators (PPIs) measure the effectiveness of internal processes that drive those outcomes. PPIs translate strategy into action by monitoring how well day-to-day operations support broader business goals.
Example 2 – Process Level (PPI): Corrosion-related downtime drives direct maintenance costs of $100M–$250M annually. Indirect costs—primarily from lost or deferred production—are up to 50x higher, significantly impacting operational performance and asset utilization.
IPIs: Connecting People to Process
Sustainable performance depends on individuals consistently executing tasks with skill and precision. Individual Performance Indicators (IPIs) measure how effectively employees apply their capabilities in ways that impact PPIs and KPIs.
Example 3 – Individual Level (IPI): Maintenance technicians and process engineers consistently achieve a 95%+ on-schedule completion rate for preventive maintenance tasks across all facilities.
To drive high performance at the individual level, organizations must systematically build and reinforce capability—which brings us to the role of continuous improvement.
Continuous Improvement: Building Capability for Performance
Sustained improvement requires more than metrics—it requires an organization that can learn, adapt, and evolve. A CPMS supports this by using real-time performance data to inform and refine learning and development. This closed-loop system ensures training remains aligned with operational realities, driving ongoing improvements in individual and organizational effectiveness.
Key Steps in the Continuous Improvement Process
Analyze PPI data to identify performance gaps
Process-level data to pinpoint deviations from performance standards.
Map gaps to accountable roles and assess performance
Identify which individuals or teams are responsible, then assess their skill and knowledge levels.
Align findings with curriculum and update training
Translate insights into targeted learning interventions—modifying or designing content to close gaps.
Validate effectiveness using Kirkpatrick’s Chain of Evidence
Apply the Kirkpatrick Model to link training to behavior change and business results—ensuring efforts are not just educational, but outcome-driven.
This creates a direct line between learning, performance, and business impact.
Conclusion: Aligning Performance for Lasting Impact
A well-designed Cascading Performance Management System (CPMS) transforms strategy into execution by aligning organizational goals with processes and individual capabilities.
By connecting Key Performance Indicators (KPIs), Process Performance Indicators (PPIs), and Individual Performance Indicators (IPIs), and embedding continuous improvement into capability development, organizations create accountability, close skill gaps, and drive measurable outcomes.
This approach ensures development efforts are not just educational—they’re purposefully tied to performance, enabling lasting impact at every level.
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