The Power of Performance Management
During the last several years PORTICO has experienced increasing requests to help organizations enhance their performance management initiatives. From sharpening job descriptions and hiring criteria, to implementing behavioral and performance metrics and training leaders in coaching and feedback, we’ve noticed a stronger interest in performance management. There are several reasons for this trend in organizations today. A survey partnered on by WorldatWork and Sibson Consulting, published in 2007, lends insight into why organizations are tightening up performance management. The results from this survey demonstrate that there is a “Clear linkage between successful performance management and superior organizational performance.” The study found that “higher performing companies tend to have better rated performance management systems.” (2007 State of Performance Management Study by WorldatWork and Sibson Consulting; Source: www.worldatwork.org)
We all know that, “A silver bullet does not exist that will revitalize performance management.” (www.worldatwork.com, 2009) However, research demonstrates that there are some basic components that must be in place for performance management to make a difference in individual and organizational performance. These include:
--Job descriptions that define the Key Result Areas of the job along with performance metrics;
--Baseline Cognitive and Physical Skills required to effectively perform a job;
--Behavioral Performance Dimensions that link to the job and to organizational values;
--Leadership training in performance management and participation in the performance management system;
--On-going coaching, review and feedback;
--Methods of addressing and resolving poor performance;
--Some form of 360 or peer review; (Only if the culture has been prepared)
--Consistent application of the performance management system;
--Employee trust of the performance management system;
--A connection between performance results and rewards.
Performance management CAN make a positive difference in individual, team and organizational performance, but it requires multiple components, readiness, a culture of trust, consistent application and leadership involvement.
Watch for a short article in our next newsletter, entitled: Employees Really Do Want It! (Performance feedback)
Additional source used for this article: (i4cpinc.com {Institute for Corporate Productivity} via www.worldatwork.com, 2003)
