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Introduction to Performance Management

Aalto University via Aalto University Executive Education

Overview

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How do you turn strategy into something people can actually act on - and improve? This online course introduces performance management as a practical system that connects strategy, goals, measures, and decisions. You will learn how to design and use KPIs that guide behavior, support decision-making, and link everyday actions to long-term value creation. Rather than focusing only on measurement, the course shows how performance management works as a continuous cycle: setting direction, tracking progress, learning, and adapting. You will explore both financial and non-financial perspectives, including key metrics such as ROIC and EVA, and understand how they relate to operational performance.

Syllabus

Learning Outcomes

By the end of the course, participants will be able to:

  • Explain performance management as a system that links goals, measures, targets, review routines, decisions, and learning.
  • Design a coherent performance management cycle and specify the roles, rhythms, and decision rights needed to make it work in practice.
  • Select and define high-quality KPIs that are decision-relevant, operationally meaningful, and fit-for-purpose - including clear definitions, data sources, ownership, and review frequency.
  • Build balanced KPI sets that avoid common traps, and incorporate leading/lagging indicators, trade-offs, and guardrail measures.
  • Translate strategy into measurable hypotheses using tools such as strategy maps and cause–effect logic, and use performance data to test, learn, and adapt as strategy evolves.
  • Integrate financial performance management by linking operational drivers to financial outcomes, and interpret key financial measures used in steering.
  • Diagnose and improve existing performance management systems by identifying misalignments, behavioral side effects, and redesign options that strengthen execution and learning.
  • Communicate performance insights through clear narratives and visuals that support action - tailoring messages to different stakeholders while maintaining transparency and accountability.

Content and Schedule

The course is fully online and self-paced, allowing you to study flexibly within 90 days of access period. It consists of four modules combining short videos, texts, practical examples, and quizzes.

Across four modules, you will build a structured understanding of:

  • How to connect strategy with measurable performance
  • How to design meaningful and balanced KPI sets
  • How to translate strategy into action using tools like strategy maps and scorecards
  • How to link operational drivers to financial outcomes

For Whom?

This course is for professionals who work with performance in practice - defining, tracking, or improving it. It is particularly relevant for experts working with KPIs, as well as team leaders and managers who want to ensure that goals and metrics support both daily work and strategic direction.

While no prior studies are required, the course is most valuable for those who already have some exposure to business, performance, or financial topics and want to deepen and structure their understanding.

Taught by

Dr. David Derichs

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