Performance management is one of the most critical activities in an organization. A good process fosters engagement, productivity, and retention and ensures alignment with the organization's goals and purpose. Performance management consists of many different components including coaching, feedback, expectations, goals, performance discussions, and correction.
An important component of Performance Management that isn’t typically done too well is the Performance Review or Performance Appraisal.
Why they usually suck:
>75% of employees and managers feel that results are ineffective and/or inaccurate.
Studies have shown that ratings are demotivating and don't correlate to performance.
They aren't done often enough.
They are focused on the past.
Managers don't know how to conduct them effectively.
There is a better way - Performance Conversations!
You don’t need a fancy, time-consuming process or system. Keep it simple and build regular performance conversations into your culture. I recommend a quarterly cadence to keep the dialogue going and ensure employees are aligned and motivated. Think of these conversations as an expanded one-on-one!
To create your process:
#1 Establish Key Results Areas (KRAs) for positions.
These include 5ish most important areas of responsibility or focus where outcomes are expected as part of a role or team. Next, determine how you can measure success for each KRA.
I'm not a big fan of ratings but if you want to incorporate some metrics, you could use a model like I've outlined below.
Example for a Customer Service Rep position:
Provide excellent customer service by meeting service level agreements (SLAs) for email response, telephone response time, and customer service feedback expectations.
Needs Improvement | Meets Expectations | Exceeds Expectations |
Email and call response time is often below expected SLA levels. Customer feedback ratings are below average.
| Consistently meets SLAs for email and phone response time. Customer feedback consistently meets expectations.
| Often exceeds SLAs for email and phone response time. Customer feedback is frequently above average.
|
#2 Include Core Values
It is important for employees to consistently demonstrate the Core Values of your organization to build a positive culture. An excellent way to reinforce these values is to include them in your performance discussions. You can do this through your open-ended questions or by using categories as shown below:
Accountability – Taking ownership of actions and results, holding ourselves and each other accountable. Honoring commitments and taking responsibility for delivering on our promises.
Needs Improvement | Meets Expectations | Exceeds Expectations |
Is inconsistent in taking ownership of actions and results. Often does not honor commitments and meet deadlines.
| Takes ownership of actions and results. Usually honors commitments and delivers on promises. Meets deadlines regularly.
| Consistently takes ownership of personal actions and results and holds themselves and others accountable. Always honors commitments and delivers on promises. |
#3 Utilize open-ended questions
I like open-ended discussion questions better than ratings in most situations. Here are some examples:
Describe your accomplishments during this period.
What were your challenges or setbacks? What did you learn from them?
How are you doing in our Core Value areas? What are you doing well? What could you work on?
What would you like to learn?
What support do you need from me as your manager?
#4 Incorporate goal setting
Incorporate performance and development goals into your process. Make them SMART (specific, measurable, achievable, realistic, timely) and have regular discussions on progress.
#5 Consider a Self-Assessment component
I'm a fan of including a self-assessment but it doesn't complicate the process a bit. If you decide to incorporate, send the employee a form or questions to complete in advance. The benefit of the self-assessment component is that it makes it more collaborative. In addition, employees may share important information you didn't recall or consider that helps you complete your part of the process.
How to Design Your Process
Customize a process that makes sense for your organization.
Garner Senior Leader input and support.
Train managers - not only on how to executive these conversations well but how to give positive and developmental feedback in a motivational way; listen with empathy; coach instead of giving advice or fixing; and helping employees grow.
Announce new process to employees – share the format and the “why” behind it.
Launch and monitor.
If you have questions or would like assistance, contact leslie@influencehrconsulting.com
Want more information? Watch the Performance Management That Doesn't Suck webinar
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