Measuring Performance seems to be such an issue with many people I thought I would add some ideas that might help support my previous blog The Seven Virtues of Performance Reviews http://bit.ly/d2UFWB.
Traditionally and even today I note too narrow a focus on how Performance Measurement and Reviews are handled in organizations.
Learning Point #1 In order to achieve effective communications, team building, results that work, motivation and engagement we need to have effective performance measures in place.
Learning Point # 2 Performance reviews and measures must be part of a strategic leadership and management system AND not simply be focused on maximizing future profits.
Learning Point #3 We need to move away from the traditional approach of it all being down to financial results and outcomes, that’s too narrow!
Learning Point #4 Reviews need to focus on the strategic outcomes of the business and in turn develop the person along those lines,
Learning Point #5 The information used needs to be relevant and contribute to good decision-making. Too much focus has concentrated on what has already happened and looks backwards rather than forwards!
Learning point #6 Reviewing performance is about meeting the needs of the future!
Learning point #7 Performance reviews are about “building” not “destroying” the people in your organization.
Leaning point #8 Performance reviews are not an extension of your accounting system; they are part of your business culture.
Learning Point #9 Crucially performance reviews were viewed as influencing behavior- failure to perform was seen as punishment thus stifling innovation and creativity.
Learning Point #10 Performance Reviews, are there to develop not to punish your employees!
A great way to look at the basis of the new approach is the Business Performance Through People – Review Pyramid – see picture on this blog!
Adapted from Institute of Management Foundation and the work of R.L.Lynch and K.F.Cross 1991
So when we get the reviews right what do we really get out if it?
I often hear this from managers that bemoan the fact that reviews take up so much of their time
To those guys.
I say if you don’t have time to manage your people, then DON’T BE A MANAGER!!!
So here are the Virtues:
- We will always know both what has to be achieved and what specific capabilities must be learned and maximized in order to achieve it.
- We will always know before sitting down with the person what they have achieved in terms of results, forecasts and learning’s.
- We will therefore devote any performance review meeting to the person’s development or rather more accurately improvement needs.
- What was the “gap” between outcome and forecast?
- Why was there a gap?
- What could both parties have done differently?
- What has to be done in future – who and when and how?
- How can we ensure it happens?
4. We will identify with individuals and teams what capabilities are necessary not only to do the job in hand but also improve it!
5. We will make sure they actually know to both our satisfaction what the priorities are.
6. We will keep our “feet on the ground and our eyes on the hills” In other words our target setting will not be based on “same old same old – status quo” nor on minimal improvement but actually on excellence. – How good could we really be?
7. We will regularly and openly confront omissions and weaknesses while at the same time recognize achievements and strengths wherever they are genuine!
So there you have it. That’s one way to improve your people who in turn will improve your business!
All of this can and must be turned into dollars for there is no doubt in addition to the person improving you will see bottom line results!