Generating and maintaining high performance of our teams is a critical characteristic of successful organisations.
Teams that are performing at optimum levels drive competitive advantage, create positive work cultures and differentiate ‘great’ from ‘good’ in achieving the organisational outcomes.
It is crucial for businesses to have effective systems in place which:
- determines performance parameters,
- acknowledges and recognizes positive performance
- provides a framework to monitor performance
- builds accountability of all stakeholders
- proactively and positively manages performance issues in a timely manner
Many organisations and managers find developing and implementing an engaging and productive performance management system very elusive.
Sometimes even when we have all the components of a constructive performance management framework in place something gets lost in translation. Performance management can become synonymous with an expensive and disengaging waste of time for managers and team members. Rather than turn people on to perform better, the process turns them off!
So, we know it makes sense to have a strong and meaningful performance management framework, but how do we create it? How can you build in accountability and also motivate the team in an integrated and streamlined process?
It is critical to identify the key components of the performance management framework for all organisations;
There are a range of HR policies that can directly impact on managing performance in an organisation. For example,
- remuneration policies may outline bonus or incentive schemes,
- employee performance policies may list a process of how regularly performance will be reviewed, the method and the basis of any scoring system,
- the Code of Conduct and Disciplinary policies will discuss the consequences of unsatisfactory performance or conduct.
All policies should be reviewed to ensure they are working in synergy. For example, the incentive scheme cannot encourage behaviours that could possibly breach organisational Code of Conduct provisions. This sends mixed messages around performance expectations to the teams and undermines the framework.
Ensure the position descriptions are accurate and reflective of current duties. Use the performance management process as a regular opportunity to discuss the current roles to identify any changes to the duties involved.
The accountability in the framework is platformed on accurate position descriptions and performance indicators that provide a consistent and clear description of the responsibilities involved.
Setting indicators and goals
Define the indicators and goals in clear and concise language. Ensure these goals align with the overall business goals and objectives and create a ‘clear line of sight’ through the organisation. This linkage is very important in building understanding of the business direction and priorities and how each individual is contributing to those goals.
The other area where I see organisations struggle relates to effective goal setting. This can often be an area that disengages people rather than motivates teams.
Take some time to get this part right. Engage your teams in setting the goals to build engagement. The SMART goals formula works very well in creating goals that are: Specific, Measurable, Achievable, Relevant and Time bound.
The above components of the performance management structure create a shared understanding of the expectations of performance and how it will be measured.
The next blog relates to the two final components of successful performance management: that is, the actual process used and also the importance of developing skills in our managers to maximise this important opportunity to drive continuous improvement in the workplace.
In the meantime if you would like to know more about creating and implementing an effective organisational performance management process, please contact us.