10 factors to modern performance management

10 factors to modern performance management

Most managers know that the basics of effective performance management should include goal setting, coaching, development planning, and recognition. While these are the actual pillars of performance management, there are also certain factors that can dictate its success.

As a thought leader in performance management, Josh Bersin of the Deloitte Bersin research firm has identified the top 10 factors in a performance management process, which are outlined below. (You can read more about them in his Deloitte SlideShare.)Take a look at the list to determine if you’ve gotten the following factors right in your performance management approach:

Philosophy, purpose, and culture

Identify your company’s philosophy and purpose, and build them into your corporate culture.

Make goal-setting agile, local, and meaningful

Make sure that goals are aligned, clear, and have a specific purpose employees can understand. Have managers collaborate with their peers to help them set goals that support company objectives at the individual level.

Use check-ins instead of the annual review

Annual reviews are antiquated, ineffective, time-consuming, and costly. Use weekly check-ins instead.

Reduce (or eliminate) impact of ratings

If you still want to use a rating scale to gauge performance, make sure that you’re having discussions with employees about their performance regularly (via check-ins). Consider getting rid of numeric scales to assess performance altogether.

Coach and develop your employees

The best managers are coaches who give ample feedback to help their employees perform at the highest possible level. You must also present them with the resources they need to pursue the development opportunities they seek.

Redesign compensation processes

Not all companies link pay to goal achievement, but it is possible to do. Find out which compensation processes will work best for motivating high performance in your organization, and make any changes as needed.

Recognize employee contributions

Even top performers who regularly excel want to be noticed for their efforts. Praise both small accomplishments and major wins using the specific methods for recognition that each individual prefers (e.g., a private email vs. recognizing their achievements publicly).

Simplify your processes

Eliminate redundancies by ensuring that all goals and efforts are aligned and everyone is making unique contributions towards achieving team, department, and company-level goals.

Use metrics to measure success

Identify the performance metrics that will determine success both in terms of goal achievement and ongoing performance. Make sure that employees have a thorough understanding of how their performance will be measured in advance, well before performance-related discussions take place.

Train managers on these practices

Train management to ensure that they’re managing their teams according to company-wide performance management strategies.

These performance management tactics are simple, but by incorporating them into your overall strategy, you can lead your teams in the right direction and increase goal achievement across your entire organization.