Performance Management as a Game
Many of my previous posts have been pretty dry – they are focused on technical aspects of collecting and analyzing performance data. These are how a behavior program is implemented. What might get lost is why go to the trouble? Let me paint a picture.
When I first started working, the best predictor of employee earnings was length of time at a company. It was very disappointing to me personally to be paid less and appraised lower than more senior people for this reason. We were supposed to be appraised based on achieving our objectives, but at the end of the day everyone had different objectives, so it was very difficult to really understand how the appraisal process worked. I was supposed to get regular feedback from my manager on how I was doing. We had weekly meetings. Imagine my surprise when I got an appraisal that did not match the weekly feedback. What was crazy is that everyone understood these challenges, but it was the “system” and we didn’t have the ability to change it.
At the risk of sounding wacky, I think a better way to do this is to create a system that aligns everyone’s interests. Set clear goals, outline how progress against the goals will be tracked, and then provide a feedback mechanism so that everyone knows where they stand. This is the definition of a game! Think about games. Every game has a goal (win). There are rules for determining how you accumulate points, and you can see how you are doing relative to your peers. In gaming situations, it is not necessary to have someone looking over the game players shoulder to make sure they are playing correctly. Good play is it’s own reward as it gets you more points. Greater point totals mean you end up higher up on the leaderboard.
Measurement and analytics allow management to create a real-time work game. The point of the game is to create the most value for our customers at the least cost. Leaderboards allow staff to know how they are doing relative to their peers. They make it easy for each team member or team to understand how they are doing relative to their goals. In a properly designed system the staff begins to manage themselves.
The game design ensures that everyone in a function is measured the same way. The measurement is frequent so staff see how they are doing. If the annual appraisal is consistent with that weekly feedback the best person as determined by the numbers will receive the highest ranking.
Wouldn’t it be nice if your staff did what you wanted without having to be watched all of the time? Your staff will also probably like to work in a meritocracy where they are paid and rewarded in a way that made sense (do more quality work, get paid more).
Let me be clear about one more thing. You can and should include other factors in the appraisal process. Team members that support the companies core values should be held in higher regard than team members that don't -- even if their production is equivalent.
I know this works because I have used these techniques in multiple settings. Want to know more—contact me.
