Improving Performance Management

Performance management is one of the most criticized and maligned processes in organizations today, due to broken processes. It’s difficult to fix, but there are two philosophies that can help:

• Changing the mindset and purpose. Performance management isn’t about reviewing, assessing, evaluating, or managing people—but developing them.
• Changing the time horizon. Performance management can’t just be about what has already happened, because that cannot change. It must also be about the future.

These philosophies aren’t about forms or systems. Significant and important change can be made within the confines of the existing organizational systems.

The Five Key Conversations of Performance Management

Leaders should be familiar with the five key conversations they are likely to have with their reports. If they can navigate these conversations, they are more likely to manage their employees’ performance well.

• Conversation #1: Orienting to New Work. Orientation conversations should familiarize new employees with the information they need to succeed in their jobs. Managers help jump start work by introducing employees to goals, people, processes, and resources that support them in becoming independent and productive contributors to their teams.
• Conversation #2: Establishing Direction. Direction-setting conversations set the context for work. The manager should let employees know what results are expected from them, how those results link to other department results, and how they support the larger organization’s strategies. Effective conversations focus on outcomes and results rather than tasks and activities.
• Conversation #3: Coaching for Results. Managers should use coaching conversations to help guide employees toward self-directed performance. They can enable performance by giving meaningful recognition and making suggestions for course correction. This guidance can take the form of helpful suggestions before an employee begins work and feedback after observing performance.
• Conversation #4: Reviewing Performance. Performance reviews focus on assessing performance against agreed upon results. During these conversations, managers need to convey an overall picture of performance based on objective data. The manager should express appreciation for the employee’s good work and clarify any areas that need improvement.
• Conversation #5: Developing Others. Developmental conversations focus on building performance to exceed expectations and to develop new skill sets. The purpose is to help employees grow their skills or advance. Developing others also includes giving them greater visibility to key decision makers in the organization.

For more great advice and activities to help improve performance management in your organization, explore the performance management training materials available at HRDQ!