Hi Ped,
The biggest thing to watch out for is going for too much automation and/or making the process overly complex for managers and employees. Saving time in the
HR department through automation is no good if you have 3,000 employees spending an extra hour using a piece of technology. Much of the issues that organisation face with online performance management, assuming an a vendor who matches your desired processes is selected, tend to relate to a lack of change management during implementation.
Rgds
Michael