Performance Management – the way forward
Performance reviews have historically been a once a year activity which is highly structured, time consuming and often uncomfortable for both parties. The result is that this important business process is avoided or is not performed effectively. Why do people hate performance review meetings? Simple, nobody likes to be put under a microscope to be analysed and judged. Questions such as; On a scale from 1-10 how effective is the employee’s communication? These types of questions can make employees feel uncomfortable and inadequate as a person if graded low, rather than generating what is needed, confidence and improved communication.
Rather than having discussions about a person’s skills and abilities it is more effective to focus on business outcomes and how the employee may deliver of these. What is the business trying to achieve and how is each role connected to delivering on this strategic goal? The H Factor’s “Outcome Conversations” are not an assessment of an individual’s performance, they are a discussion about the strategic outcomes for the business. The discussion generates ideas on how the employee can deliver on these outcomes better as a continuous evolving process. A position outcome is a broad statement that is open to interpretation. For example, if you have a sales position a typical outcome would be to increase the number of customers. The manager can then ask the employee what they have done to deliver on this and how they intend to do this better. They can even ask what would be a fair measurement of success? Giving the employee the opportunity to generate the ideas, be empowered to design their tasks and be accountable toward outcomes that will bring profit to the business is much more motivating than being told what to do specifically.
A traditional position description lists task, the sales position example might include; make 20 calls per day, visit 5 potential customers per week, attend 4 networking events per month. Whilst these ideas are good, if they have come from the business and not the employee they may not be driven as effectively. People do not like to be told what to do and how to do it. We as humans need to be creative, need to be free to express our individuality and be given the opportunity to make a real contribution to something bigger than ourselves. When we make an employee accountable for an outcome this is when magic starts to happen.
Remember to reward performance appropriately. Salary increases should be considered annually with a percentage based on the overall performance of a business, but small ongoing rewards given throughout the year should also be applied. Be creative and don’t let a tight budget stop you from recognising and rewarding a staff members outstanding performance. Take an employee for coffee and acknowledge their hard work and how much it has made a difference to the company. People need to feel that their hard work is noticed and appreciated. This can be done in a myriad of ways with any budget, no matter how lean.
Managers need to invest time in these conversations to ensure they retain good staff and develop careers for their people. Build the right team, take care of each individual and your people will in turn help to drive your company’s success.
Evolving Doors currently holds a licence to The H Factor software. To learn more about outcome conversations see; https://www.thehfactor.com.au/features.html
