I attended the CIPD Performance Management conference recently where radical changes to the traditional performance management framework caught my attention. Adobe has pretty much thrown their performance management framework up in the air and started again from scratch, taking out any reference to appraisal, and encouraging regular catch up conversations. Performance ratings no longer exist and they have invested heavily in line manager training. The concept in theory really appeals to me and Simon, the HRD described how the value of the conversation was lost as the time was spent debating the rating as opposed to discussing performance. They also have taken away the annual link to pay, giving managers a budget to apply increases to pay at any time in the year, with reference to peers and market. This progressive approach to performance management has interested us at Innecto for some time, as there is definitely something attractive in the idea of removing the forms, the reliance on labels and pain that can go with them. Adobe has invested heavily in management training to deliver this new approach and I certainly applaud them for that. A recent piece of research by the CIPD showed what we have all known for years - that managers rarely get the training needed to deliver their role effectively - they described how over a third of managers have never received training in how to supervise people. A robust performance management framework whether it has labels or not, or is linked to pay and bonus or not, will always need confident mangers who can guide those needing support, and give relevant and meaningful feedback.
Whilst the Adobe model has moved away from the static reviews at certain points in the year to a more fluid model, has it gone quite far enough to engage all employees and is it only a stepping stone to the future feel of performance management? We’ve been doing work at Innecto into the inter- generational differences now found in workplaces (i.e Baby Boomers, Gen X & Y) and most research verifies that the younger members of the workforce i.e GenY, expect more frequent communication and updates on their progress. As a generation used to social media and gaming, waiting to the end of the year to have a discussion about their performance is simply demotivating. It’s also potentially not social enough. Reviews conducted in isolation with line managers goes against much of the GenY thinking and research, with a preference for sharing feedback and recognition taking place on a much more social platform.
So I’m starting the conversation now – how willing are you to take a long hard look at your performance management framework and throw it up in the air? What is the demographic of your organisation and what can you put in place to really engage with your employees on their performance? If you want to be ahead of the rest then get in touch - we are developing some simple yet creative solutions to really engage and drive performance. Watch this space!