Performance management is the system that brings together the key elements that make a company successful. As such, business leaders interested in leading towards success should be excited to design and keep alive the performance management system in their organizations. Instead, we often observe that performance management is neglected, or perceived as an “HR issue”. While HR teams should be very proud to have the success of the business put on their shoulders, it is not enough that one team is responsible for such a fundamental part of the business. In many organizations, performance management is old fashioned, bureaucratic, complicated and, frankly, works against achieving business results and creating employee engagement. Companies interested in success should have a simple up to date performance management system that complements and connects the different key elements of the business and is vital part of an inspiring workplace.
We define performance management simply as the system that brings together the key business elements required for success. Performance management is grounded on the values, strategy and core competencies required to succeed in a specific business environment and it is linked with other management systems. Strategic thinking helps employees create these connections. At the heart of performance management, we distill this bigger picture through self-reflection and dialogue with team and manager into inspiring unit, team and individual targets. Through supportive coaching and positive and constructive feedback we pave the way to results. These results are evaluated objectively, rewarded fairly and areas of development identified. These development areas are supported and followed up with development plans in a positive way that inspires employees to excellence. The aim is to create intelligent organizations where efficiency, renewal and wellbeing are balanced. This is not a linear system rather performance management is a continuous system, continuously supporting business results.
Business leaders who recognize the true value of performance management and design a system that inspires and supports employees to success will create a competitive advantage in their organizations. Savvy recruits and current employees will soon demand that performance management systems be revamped to meet today’s business needs and aspirations. Steven Rice from Juniper Networks “is responsible for leading Juniper Networks’ people strategy of creating an inspired community of people able, committed, and empowered to achieve amazing success.” An integral part of this people strategy is a performance management system that recognizes the whole human at work, is future oriented, based on continuous dialogue and excludes forced rankings.
How are you creating a competitive advantage through a modern performance management system in your organization?
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Senior Partner at Pertec Consulting