Once a year performance

Two phrases - very different results. Before the 1990's you probably ran or were exposed to performance appraisal, or performance evaluation - a once a year tick in the box, pass/fail experience. Many organisations have now moved to performance management systems. Is there a difference or has it just changed its name? We believe there has been a fundamental change, for the better, and here's why and how you can implement better performance management systems.

Performance appraisal/evaluation was generally kicked off by the HR department. Managers typically evaluated how staff performed tasks - how many Xs did you deliver in the past year. Staff received feedback after this once a year session and usually agreed with the good news and disagreed with the bad news. Process done.

What is missing from performance appraisal/evaluation is a clearly defined link with organisational objectives and departmental goals, and a partnership approach to improving performance of the individual staff member, the team they work in and the organisation as a whole - enter performance management.

So what do you need for a good performance management system?

1. clearly defined, agreed, and understood organisational and department objectives and goals - if we don't know where we are going and how to get there how can we accurately manage our progress?
2. defined personal performance that is agreed between the individual staff member and her/his manager - agreed, because unless there is a joint understanding and commitment to performance standards there is no way two sets of expectations can meet
3. performance measures that are agreed in advance - what will be measured, how will it be measured, what are the rewards and consequence of good and poor performance?
4. regular communication (open, honest, two-way) on goals and performance.

Moving to a performance management system fundamentally changes the game. Instead of fighting with managers for achievement points, now the job of both staff members and managers is to jointly understand performance criteria; jointly understand how each party can contribute to achieving goals that are important to both the staff member and the organisation; and to communicate every working day to update current expectations and achievements. Are you actively managing performance or just hoping it will happen?