Many companies still struggle to accurately define and manage performance. This risks wasted time and employee goodwill on systems and procedures that don’t deliver business outcomes which are aligned with the plan.
Linking objectives to businesses outcomes should be common practice, yet leaders often base performance management discussions on how a person has completed their role, rather than have a razor-sharp focus on achieving business outcomes that are facilitated by objectives or KPIs that are directly linked to the business plan.
The purpose of performance management solutions is to ensure employees achieve organisational objectives via focused work. This means it is imperative to understand the importance of setting valid objectives in line with business strategy and to develop the right skills and competencies while ensuring fluency in managing responsibilities.
At its heart, performance management addresses three questions:
In a perfect world these questions would be managed and answered consistently in conversations. Business reality is that performance management systems need to be put in place to support the employee and the employer at the same time. These can be “paper- based” systems. Excel worksheets or ultimately performance management software.
Performance Management conversations have never been more important. Poor performance management concerns employers and employees alike. A ‘lack of performance management’ is one of the main reasons employees leave their company. Ironically, top performers need it most. Employers must stay in touch with their workforce and engage their employees via regular performance management conversations to build high performance teams.
Position Descriptions that are relevant and articulate responsibilities rather than tasks. Over 30% of employees do not have a position description.
Formal and Informal Feedback
A mix of formal and informal feedback that is always focused on organisational goals
Coach and Mentor
Line managers who learn how to coach and mentor
Development plans that improve performance and improve business outcomes at the same
Performance management conversations
Performance management conversations are ways in which the organisation also receives valuable feedback.
Forget the debate for a moment about the difference between performance management and performance conversations. The reality is that the investment of time and money on performance management needs to be targeted and aligned to improve business results. It creates a high performance culture, it keeps key players engaged and it is a catalyst for building capacity and capability. At that point the return on investment is a simple calculation.