The press often talks about organisations that have ‘abandoned performance management’, but reading between the lines, the main thing that has changed is the focus. It’s moving away from fixed annual reviews towards more regular conversations; focusing less on the process and more on the actual discussion itself. It’s more about performance management evolution than revolution.
As something which was originally introduced to ensure employees were doing what they were told, traditional performance management has lost its meaning in today’s constantly changing world. And as HR professionals, we have somewhat embraced the process and forgotten what we’re really trying to achieve. Businesses are now demanding performance enhancement rather than management of a process. What organisations such as Deloitte and Adobe have really done is examine the value performance management adds to their business and said ‘wait a minute – perhaps it’s not really adding the value we think’. By taking a step back and examining their approach to performance management, they have discovered that their systems weren’t fit for purpose and needed to evolve.
When clients need help with performance management, we help them understand what it is they really want and need; and what their employees want and need. Take a moment to consider your organisation’s approach to performance management:
- Can you honestly say it adds real value to the business?
- How do your managers/employees feel about it?
- Ask them to consider how you might manage performance differently, wouldn’t it be amazing if….
- What would it mean for your organisation if you changed it?
- What's the business case for doing it?
If on examination you feel things do need to change, my advice would be don’t follow the crowd. Just because Deloitte have taken away performance ratings or Adobe abolished annual reviews, it doesn't mean that’s right for your organisation. Take time to understand what really needs to change and what would have the most impact.
Working with a client recently, the project began with some very strong ideals to ‘rip up’ the existing performance management approach and move away from ‘form filling.’ The idea was that conversations would be paramount and that the organisation should develop a performance culture. While this remains the ultimate destination, they have discovered revolution is unlikely to happen overnight, and will take time and investment, particularly in their management capability. Ripping up the form in some respects, right now, might make things worse.
If, over the years, you haven't invested in your management capability, you can't expect that by simply taking away a form, a good conversation will just magically happen. So by all means rip up your forms and take away your annual appraisal, but take the time to understand how best to evolve performance management in your organisation and how to best help your managers to be great managers. After all, that’s what performance management should be all about.
