How often do you conduct Performance Management meetings in your business?
I want to understand how some companies use Performance Management/Development, the frequency and the effectiveness of those meetings. More importantly what is the impact on achieving your target?
You'll likely find that most larger organizations have an annual performance review cycle with some employing 90-day introductory reviews for new hires. Whether the performance management is effective or not depends on many things.
It starts with the culture of an organization and the reasons why they are utilizing reviews. If they are doing it to enhance communication and foster relationship-building amongst staff and management then it tends to be much more effective rather than the organizations that do it merely to keep tabs on performance and use it as a byproduct to disciplinary action. There are many emotions surrounding the process for both managers and employees alike. It can easily become a daunting task that managers do begrudgingly and hastily as it takes away from their time spent being "productive" although, done well, performance management will greatly enhance productivity all around.
There are a few components to having stellar performance management/development processes:
First, having a pre-existing culture where employees know what is expected of them in advance and what they will be reviewed on, and, equally as important, a culture where management addresses performance issues as they occur is key. This prevents the performance review cycle from being the dumping grounds for all the disciplinary action the manager should have instituted on the employee for the year leading up to the meeting.
Second, keeping any process for PFM/PFD simple and tied to both company goals and individual employee goals and responsibilities ensures relevance. which everyone will appreciate.
Third, creating a process that management is involved in and buys into will ensure the company will get more bang for their buck. Just having reviews to have them will be seen through immediately and won't go over well; in fact, it will create greater issues.
And, as a bonus item, utilizing employee input when creating these processes will immensely boost engagement and buy-in to the program.
What most employers can forget is that PFM/PFD should be designed to be a mutually beneficial product for both company and employee - it should not be heavily weighted toward benefit to the company or problems will arise during the process and the company won't achieve what it set out to no matter how hard they try.
I hope this helps provide some background and direction for any business you're working with.
The frequency ulitimately is based on on the level of engagement the organization provides to the employees. you must also take into consideration how much is formal, or informal. To be highly effective there should be informal temperature checks occurring at least weekly if not daily especially if the work is heavily project oriented. formally should be at least once a quarter, and it should not be connected to a reward system it should be used to create understanding to increase or decrease learning opportunity. That performance should be completed as a 360 style data collection with authentic feedback, that in return is attached to upcoming, and previous goals.
I'm going to assume you're talking about individual performance management; aka "employee reviews". Some good suggestions here and of course every situation and organization has different needs, goals, team make ups, size, etc.
But with that, I caution that "performance management" is primarily a 20th century, legacy management tool that when used inappropriately and universally, can cause more harm to teams, individuals and even products (aka the bottom line) than it's mythical on-paper benefits. The major problem is the importance of the team as a development system are tossed out the window during these periods of KPI crunching. Employees clawing for pieces of the pie are usually more insulted than inspired by this process. Basically, performance management is what happens to teams and individuals when day to day leadership has failed them.
Yes people need raises and promotions. Yes people need to be coached up or let go. But all too often, we see arbitrary benchmarks, absentee "drive-by" middle managers and blindly standardized HR procedures rewarding or neglecting employees in conveyor belt fashion - without a care toward actual individual contributions, intrinsic motivations, learnings, product success or meaningful and agreed upon measurements. Not only is this infrequent practice of IPM questionably effective in increasingly agile organizations, but it can be a monumental waste of effort! And we want to do this to people quarterly? Stop managing and start leading.
It depends on your business model. Coming from the pharmaceutical industry, we had a mid year and annual performance review in which we discussed development. However, effective managers address performance on a regular basis, like during field co-travels. You don't want the sales rep to be taken by surprise either at the 6 month or end of the year review, although you can't just discuss performance but need to work with your reps and develop action plans to achieve sales goals since it contributes to managerial trust and job satisfaction.
Performance Management, like quality and financial review should be done monthly. It is an ongoing process - CANI = Constant and Never Ending Improvement.
A good dashboard is the key tool for Performance Management at all levels. For a company as a whole, a department or even for individuals (benchmarked against aggregate). PM is not just about individuals but creating high-performance teams using proven strategies and best practices.
See several free videos on this page for explanation of the philosophies behind this: http://airtightmgt.com/what-is-airtight-management/dashboards-and-metrics.html. Full video on-demand courses are available for all levels of employees.
Companies today are poorly served by the "Performance Management" industry which is in the business of selling software, more than performance and results. Most measure ever grain of sand on the beach and totally miss the key summary data and KPIs that frame success and drives results. Doing this right grows better managers too. Selecting these KPIs is an art that counter-intuitively, companies can never do well themselves. They need an outside expert who is not biased by years, or decades, of habit and thinking.
Some really good feedback already. Performance management is a way of doing business. If it needs to be an event/calendar item you are probably failing at it! Performance management is a subset of any management operating system and appraisal should be like sticking a dipstick in an engine. You should be able to pull appraisal data at any time whilst running your business. Likewise your people should know how they are doing. This type of behaviour cannot be driven by event based data, but rather through measuring as we go.
Most companies, in theory, conduct them with the following cycle:
1. start of the business year,set the goals for the year based on alignment of the objectives to the business objectives, i.e. commitments of the direct manager.
2. about six months later have a progress report and make adjustments
3. Year end review if the goals are met or not and what happens as a result and set goals for the coming year.
Most ineffective. To have performance improvement it must be an ongoing dialogue between manager and direct report that can be initiated by either side. It has to have goals that align to the vision and values. It has to have meaningful consequences - positive and negative - set when the goals are set. If adjustments to the gals are made then they are the goals for the end of year, not the original goals.
Behaviours should be addressed as appropriate or inappropriate. For more see my articles at http://www.sagltd.com/sagltd.com/Articles.html. l in particular the articles in the 2002 grouping. There are three specifically on performance management:
Achieving your targets is much more linked to people engagement than to performance management meetings frequency. People tend to dedicate much more on anything they truly commit themselves with. Having said that, I recommend you to focus on:
- Weekly: informal and very quick checking points
- Monthly: engagement meetings one-on-one
- Quarterly: team meetings to share accomplishments adjusting details
- Annually: reviewing entire proccess and people performance, establishing new goals
Performance Management Meetings are formal and completed quarterly, with a final report at year end. Based on the specific functions the process may involve ongoing dialogue and feedback.
E.g with sales, there are weekly and monthly meetings to track targets and service levels and these roll up into the quarterly meetings. With operations there are also monthly meetings to track established targets and service levels (internal and external).
The quarterly reports provide the opportunity for improving any weaknesses that may have been identified.
The final annual report is used for rewards/bonus, promotions etc.
Once the process is used properly performance management meetings can be quite effective.
I have a few different experiences with conducting performance reviews/development for different companies. In my current company, I conduct performance reviews/development quarterly. Each team member assesses themselves with details on what their goals where and what they accomplished, ultimately giving themselves a grade that is associated with a percentage, equating to the percentage of their bonus they receive that quarter. We review it together and and either come to an agreement or discuss the disagreement (ultimately coming to an agreement). The meetings are incredibly effective as they assess themselves, we discuss - there are no miscommunications and it's transparent to those involved. We both walk out of there knowing where there was success, what needs works and a plan to improve where improvement is needed. The impact is they feel good as it's not an arbitrary number/commentary that management came up with, I feel good because it's an agreed upon discussion.