Most managers know that the basics of an effective performance management system should include goal setting, coaching, development planning, and recognition. While these are the actual pillars of performance management, there are also certain factors that can dictate its success.
As a thought leader in performance management, Josh Bersin of Deloitte Bersin research firm has identified the top 10 factors in a performance management process, which are outlined below. (You can read more about them in his Deloitte SlideShare here.)Take a look at the list below and ask yourself if you’ve gotten the following factors right in your performance management system:
Philosophy & Culture
Identify your company’s philosophy and purpose, and build them into your corporate culture.
Use Agile Goal Setting
Make sure that goals are aligned, clear, and have a specific purpose employees can understand. Have managers collaborate with their associates to help them set goals that support company objectives at the individual level.
Oust The Annual Review
The process is antiquated, ineffective, time-consuming, and costly. Use weekly check-ins in its place.
Eliminate Or Reduce Ratings
If you still want to use a rating scale to gauge performance, make sure that you’re having discussions with employees about their performance regularly so that there are no surprises when it’s time for formal reviews. Consider getting rid of numeric scales to assess performance altogether.
Coach & Develop Your Employees
The best managers are coaches who give ample feedback to help their employees perform at the highest possible level. You must also present them with the resources they need to pursue whichever development opportunities they seek.
Consider Compensation Processes
Not all companies link pay to goal achievement, but it is possible to do. Find out which compensation processes will work best for motivating high performance in your organization, and make any changes as needed.
Recognize Employee Contributions
Even top performers who excel consistently want to be noticed for their efforts. Praise both small accomplishments and major wins using the specific methods for recognition that each individual prefers (i.e., a private email vs. recognizing their achievements publicly).
Simplify Your Processes
Eliminate redundancies by ensuring that all goals and efforts are aligned and everyone is making unique contributions towards achieving team, department, and company-level goals.
Use Metrics to Measure Success
Identify the metrics that will determine success both in terms of goal achievement and ongoing performance. Make sure that employees have a thorough understanding of how their performance will be measured in advance, well before reviews and performance-related discussions take place.
Train Managers on these Practices
Train management to ensure that they’re consistently managing their teams according to company-wide performance management strategies.
These performance management tactics are simple, but by incorporating them into your overall strategy, you can lead your teams in the right direction and increase goal achievement across your entire organization.
Do you manage a company or teams (either as a CEO, a senior executive, a middle manager or even a front-line manager)? Do you set and track objectives? Does aligning employee performance to business goals matter, and are you responsible for driving results? If so, please check out a live demo of Atiim OKR & Goals Management Software and we’d love to hear what you think about it. Thank you!