Why scrapping your performance management system and replacing it with something new might be just what the Dr. ordered.
Change is difficult for most organizations but as we know, it’s necessary to survive in a constantly evolving marketplace. One of the most difficult shifts in culture many organizations now face is how they manage their performance management processes.
In fact, that may explain why many companies have kept the same old performance management process in place, year in and year out (sometimes for decades!) while somehow expecting different results. Or, they may actually throw away their process entirely, or at least replace it with a tool more geared to compliance – than driving any specific performance management culture.
Traditional annual performance reviews just don’t cut it anymore.
It was not that long ago that most organizations viewed performance management as an annual, one time event, typically owned and reluctantly ‘policed’ by Human Resources.
“Push, push, push” was the mode of the HR department. Very much against a reluctant user base forced to write performance evaluations that had no bearing on the actual performance of the individual, much less enabling an organization to execute to their strategic plan.
No wonder users viewed the process as a painful event!
As an example, I can recall being a new hire to an organization as Head of Human Resources in the mid-2000’s where the company was still using a performance management tool designed back in the 1970’s!
Do you think this company had evolved in 30 years? Of course it had. It’s strategy had changed, markets changed, products changed, virtually everything changed except the crucial process of ensuring that their performance management process was driving a culture that the company wanted. Instead, it kept the same performance management processes in place that were doing exactly the opposite! Yes, this company remained moderately successful, but I cannot stop imagining where it could have been if the leadership had tossed the entire performance management process out the window and redesigned a system that drove a desired workplace culture while at the same time enabling the company to execute to their strategic plan.
That is why it’s so refreshing for me to consult with progressive organizations that will not except the status quo. Organizations who ask the critical question:
Why are we designing processes around the culture we already have, instead of the culture we want to grow?
Too many organizations fall into the trap of staying with their antiquated performance management processes, because it’s easier to accept the status quo than to drive the change management process that comes with the shift. I guess that just takes too much work for some, but what a missed opportunity!
Do you want to take your organization to the next level?
Then take a good long hard look at your performance management process and really ask yourself: what it is doing? But be prepared, you may be disappointed with the answer.
Is your current performance management process driving…
- Employee engagement?
- Individual goals directly linked to strategic initiatives or operating KPIs?
- Reinforcement of company values?
- Actual behavioral competencies specific to roles that really demonstrate success?
- Leaders that own the process and are held accountable?
- A work culture that drives where you want to go versus where you are today?
- A ‘pull’ effect? Do your users welcome the tool as an easy and integral part of the work environment and actually want to use it?
If not, then why not?
All the factors listed above are within your reach.
As I mentioned earlier: change does not always come easy.
So, why not get your employees involved in the redesign of the performance management process? You may be very surprised at the level of engagement you will find. Remember, employees do not resist change as much as they resist being controlled.
PRO TIP: Get your employees involved in the redesign of the performance management process.
Make the shift a ‘bottom-up’ process, rather than top-down.
How? Select of group of progressive employees and give them the criteria listed above. Have a very senior executive (ideally the CEO) champion the initiative and give them the resources to implement a plan. Have someone on the team with some organizational development skills to help keep the project on track.
Challenge your team to think outside the box and let go of legacy practices.
- Have your team take a look at cloud based performance management solutions such as Cornerstone OnDemand’s Growth Edition and harness the power of performance analytics.
- Shift the ownership of performance management off the backs of HR, and put it where it belongs: on each and every leader in the organization. Make your leaders accountable for the successful integration of the processes and actually rate their performance on how well they embrace and set the tone of performance management.
- Enable the paradigm shift of performance management from being a one-time, annual event, to a continuous process where evaluations of employees are always current.
- Implement a cloud-based system that gives you the power of analytics at your fingertips to translate performance management data into intelligence that can be used to make critical decisions on the fly.
Data analytics gives you the power to see how your organization is performing as a whole, or filter information a variety of ways to identify your high performers and sustain them, help your low performers, identify those competencies that are scoring low and bring in development plans. All faster than ever before.
You can also see how well your organization is performing against key performance indicators (KPIs) – revealed by actual goal attainment.
The list goes on and on about how much more effectively you can manage your data. And, best of all you don’t have to wait until the end of a performance review period to evaluate the analytics! If your leaders are always current on their evaluations, then you have instantaneous access to your company’s performance data throughout the review cycle. This is what gives you and your organization the edge over its competitors.
Does that sound intriguing? Is this how you want to change your performance management culture? The power is in your hands to make it happen and so many organizations have already started the shift and wish they had done so many years earlier.
Like that old Chinese proverb says…
It’s time to go for it now!
Need help shifting your performance management culture?
Our clients come to us looking for HR outsourcing solutions and ways to enhance their workplace culture to make it inviting for all employees to perform to their highest levels. We can help you in a variety of ways. Please email us at: hello@pendolinogroup.com for more information.
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