IS PERFORMANCE MANAGEMENT DEAD?

Has the once-a-year performance conversation ever inspired you to do your best work?

Remember those yearly conversations about “goals” – the ones forced onto paper a year ago, now staring accusingly at you?  Sadly, for some this is still the case. Some of you may have “complete my self evaluation” or “write my goals” scribbled on your whiteboards right now.

The old-style performance management systems did little to improve performance or business success yet google “performance management” and the top 15 results are ads for technology systems designed to support this antiquated process.

Once-a-year conversations may actually make performance worse.  According to Gallup, a global analytics and organization design firm,  about 240 hours per person per year are ‘lost’ to the once-a-year cycle. Two hundred and forty hours- that is a lot of time that could have been spent in systems that actually promote engagement, increase productivity, and encourage people to do their best work.

The solution? Continuous improvement, that is, plans that support employees year round. Continuous improvement has its foundations in the quality control world. It includes a cycle of small incremental goals designed to reach a bigger goal. The incremental goals and progress are discussed regularly, problems identified, solutions planned and goals tweaked.

This is the perfect process for performance management. A system of frequent meetings, achievable targets, and progress towards a long-term goal. Effective, flexible, and achievable and best of all motivating.  

Continuous improvement requires structure and planning by both the manager and employee. Without that structure, you might as well just go for coffee. You need tools, meeting goals and talking points suited to your company to provide the framework and allow for feedback. There is technology to support this and some of those top google results can handle the more robust system of continuous improvement.

You can still call it performance management. Adding the continuous improvement model will make sure the management improves performance rather than stifling it. If the once-a-year model has been working for you, how much better would the continuous improvement model be?

If you want help designing and implementing continuous improvement, contact HR Continuum.  We design real systems that are easy to implement, employees and increase productivity.

Share your experiences with performance management. I'd be interested in hearing the good, the bad, and even the ugly!