It is the
ubiquitous nature of the Performance Management System that is often its
downfall. All too often organisations lose
focus on what they are trying to achieve.
How many
of us have worked in organisations that operate on an annual cycle that ends up
with the allocation of a score? Twelve
months of effort, summarised into a few paragraphs – graded, uploaded to the IT
system – never to be looked at again as we move into the next appraisal
cycle.
And with
almost every scoring system comes the “bell curve” – where the majority of the
workforce sits in the middle of the scoring system. What these organisations are saying, quite
proudly, is that their Performance Management System has measured and evaluated
its entire workforce, in a fair and consistent manner, and concluded that the
majority of them are average performers.
We have an average workforce and therefore we are an average company.
Yet if we
strip back to basics, what we’re trying to achieve is fairly simple:
- we want our people to deliver the company strategy
- we want them to understand their goals and what we expect of them
- we want them to be the best that they can be
- we want to “manage” them, to help and support them, to achieve their goals
- we want to motivate and inspire them
- we want to get rid of the dead wood
Why then,
for something so simple, do organisations fail so often in implementing an
effective Performance Management System?
The answer generally is because we focus too much on the process and too
little on the individual. In the desire
to ensure consistency and fairness we focus on measurement at the expense of
management. It’s far easier to measure
how many times someone has forgotten to complete their weekly report than it is
to measure how their work contributes to the company strategy. It takes far less time to cascade a generic
set of objectives to the entire workforce focussed on the process tasks that
everyone does, rather than setting individual objectives based on what we really
want the individual to do as their “day job”.
When we
focus on the individual, we understand their ability, their motivation, their
needs and their ambitions. We can tailor
the goals so that we set them up to succeed.
If the individual owns their goals they are far more likely to want to
achieve them than if we just cascade generic low value objectives. Rather
than cascading a ream of irrelevant objectives, the one size fits no-one approach,
we agree a small number of high priority personalised goals that focus the
individual’s performance.
Having
agreed these goals, the role of the manager is now to help and support the
individual in achieving them. The
attainment of these goals is shared between the individual and their manager, if
the individual doesn’t hit their goals, it isn’t just them who have failed –
win together, fail together. By adopting
this approach it fosters a shared desire for success.
Look at
most organisation’s process and you will see a performance management cycle
diagram – it starts with defining the business strategy and ends twelve months
later with the annual appraisal. This
annual approach to performance management is driven by the need to measure and
categorise the workforce. It has nothing
to do with managing individual performance – it is the drive to achieving the
average workforce, often linked to pay raise or bonus schemes. Performance management should be about short
cycle – Plan, Manage, Review and Renew - something that is ingrained into our
working day. What am I expected to
do? What support do I need? How am I doing? How do I improve / How do my goals evolve? These activities are all focussed on the
individual and should happen regularly and continuously.
The
organisation elements of business strategy, measurement, comparison and reward
(or reprimand) should sit around performance management cycle. Feeding in and
taking output from the short cycle performance management elements.
By separating
these concerns it allows individuals to achieve brilliance without the
constraint of the organisation needing to measure and compare across the entirety
of its workforce. We can set individual
goals that are prioritised and focussed on what is important rather than cascading
arbitrary collective, common tasks. We
also break the link between an annual pay review and on-going performance management. How often and over what timescale the
organisation performs its cycle does not constrain the short cycle performance
management of the individual.
Through stripping
back of bureaucracy by empowering the individual and their manager to
continuously improve we encourage individuals to perform at their full potential. And it is done without needing to check to
see whether your goals are comparable with the goals of someone with different
abilities, motivations, needs and ambitions performing a different role.
Most
importantly because it focusses on the individual, we don’t need to hit a bell
curve – brilliance is embraced in the organisational culture. The pursuit of mediocrity is driven out.
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About me
Bryn Robinson-Morgan is an independent Business Consultant with interests in Identity Assurance, Agile Organisational Design and Customer Centric Architecture. Bryn has near 20 years experience working with some of the United Kingdom's leading brands and largest organisations.
Follow Bryn on Twitter: @No1_BA
Connect with Bryn on Linked In: Bryn Robinson-Morgan
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Connect with Bryn on Linked In: Bryn Robinson-Morgan
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