Performance management has had a bit of a make-over in recent years. Organisations are shunning the annual performance management ritual and are rethinking fundamental aspects of what works best for both their people and their businesses.
Companies are not only reviewing the frequency with which reviews are done but also fundamentally the skills their leaders and managers have in place to get the best job done. Understanding how effective this is means that organisations are looking at investing in leadership development to support their senior teams to deliver with the right tools and experience in place.
What type of performance management works for you?
The main starting point for designing a great performance management system starts with understanding what it will be used for. Do you use yours for making major decisions, such as staff promotions, employee or leadership development, or shaping training, or a mix of all three? Do you also use performance management as a platform to reinforce core business values and priorities? Performance management is a complex process and can evolve rapidly so it lends itself to being more fluid and frequent.
Real-time in the moment performance management
Performance management is an important, often complex process so relegating it to an annual event doesn’t work in the long term. Organisations are moving more to implementing real-time, frequent feedback by all key stakeholders, which gives a bigger, better informed picture of what’s happening both with your business and your employees. It also allows for constructive criticism and insights that are better received and more actionable in the moment.
Improved conversations around performance management
Having more frequent reviews encourages managers to have more focused discussions on performance with their teams. With frequent feedback employees can see clearer and a more practical link between their roles and the required goals.
Improved performance management learning and development for managers
The best, most effective performance management in this new more fluid style relies more heavily on the skills and the managers in this area. To help their teams succeed with their goals managers may need additional support with additional training in leadership development, and how to coach and guide employees.
This leadership support and coaching is even more important as we move into a more hybrid and disparate model of the workplace post pandemic.