Strategic planning and performance management are inextricably linked if we want both to work effectively. The relationships are actually quite simple. Organizational goals are created as part of the strategic planning process.
They get accomplished by being cascaded down from the organization as a whole, to the sub-units, and then to their sub-units, until eventually they are assigned, often as pieces of the whole, to individual employees. That’s done through the process of individual employee goal setting or objective setting during the performance planning phase of performance management.
There are huge advantages to this approach. First, it creates alignment between the goals of the organization and the goals of each employee. Second, it helps employees understand that their smaller goals contribute to something bigger than themselves. It provides meaning to the work.