Performance Management: Time to Re-Engineer the Process
Many companies have performance management programs, but few are satisfied with them. They frequently see the process as too time consuming for the benefits that result. Others seek to understand what other companies do or to develop the “form” that will do everything they want. Executives are frustrated with the “over grading” of employees, but are seldom engaged in modeling the desired process or clarifying the performance expectations. Regardless of the organization, there always seems to be annoying conflicts between managers, executives, employees and human resources over this basic management process.
We believe this is the time to re-think the process and fundamentally change its orientation to make it either a highly engaging, value creating function or simplify its features and maximize its efficiencies. Our research demonstrates that there is no single right approach, best form or system that eliminates the need to involve managers and employees. The best process creates value and is viewed as worth the effort by both managers and employees. It is not only annual event, but an on-going business function. To accomplish this, we have developed a set of principles and objectives that we utilize with our clients to develop their “right approach” to performance measurement and management. It is clearly time to do things differently, and utilize a process that strengthens capabilities and performance of the organization.
The Primary Elements of Successful Performance Management:
In working with companies in a wide variety of industries and having conducted numerous research studies in this area, we have found these fundamental elements exist in successful programs:
- Employees know what they are responsible for and see how their work is linked to the broader strategy, goals and priorities of the organization.
- Managers help to translate company goals into individual actions, and assure people receive meaningful feedback, coaching and assistance to make them successful.
- People know how they are doing on a regular basis. They frequently receive and discuss “real-time” feedback that indicates how they are doing.
- The process is more focused on “fit” than feedback. This means that managers look for ways to utilize the unique abilities of their people, and see performance problems as shared responsibilities.
- People demonstrate their commitment by taking actions that achieve desired performance, improve efficiencies and own their responsibilities.
- There are clear consequences to one’s actions. Positive consequences can be higher than average merit pay increases, promotions, special bonus awards and other forms of non-cash recognition. Negative consequences can include performance warnings. And, some consequences shift people to job assignments that are better suited to their interests and abilities.
- The process is simple, supported by consistent tools and practices that are legally defensible. The human resource department is not focused on compliance, but provides the tools, training and assistance needed for managers to fulfill their responsibilities.
What the Wilson Group offers:
Our collaborative approach to performance management goes beyond the simple view of this process as a training intervention, forms design or a link to pay decisions. Rather, our approach builds capabilities, commitment, programs and tools that fit the needs of the organization. Therefore, we can provide:
- An assessment of your current programs and practices.
- The leadership that integrates your requirements, culture and philosophy with a uniquely effective performance management program.
- A set of tools that reinforce effectiveness and consistency.
- Training of executives and managers in the new model of performance management.
- Assistance with the implementation and monitoring of the progress.
- Recommendations on the technology needed to support the program over time.
Having worked with hundred of organizations over our careers, we have seen effective performance management systems and the value they create for the organization. We have also seen systems that require significant efforts and produce minimal value. Often a key difference is in how organizations align their strategy, key success factors, and values with a performance management process, talent management practices and rewards and recognition programs. Because they are an integrated set of programs and practices, where each builds on the information and off-sets the limitations of other program, they provide a simple, yet unparalleled approach to creating a strong organization.
Contact us at 978-371-0476 or at info@wilsongroup.com.
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