Performance Management with Great Leadership and Effectiveness Ingredients that Adds Value to your Business
The truth of the matter is that 80+% of Performance evaluation systems I come across are useless and actually create more problems than adding any value and another 10% lack critical parameters built into the system and the culture in order to add real value to the business.
Why? And What to do to change this?
Because to have an effective performance management system in place requires that you have a well designed and objective framework of KPIs in place based on a beautifully designed set of aligned corporate objectives which are based on a set of beautifully designed, performance driven and aligned functional strategies which are based on a performance driven corporate strategy which is based on a performance driven vision, mission and values (mission, vision, values and strategies are not just beautiful words put on a piece of paper hung in the board room or under About Us in websites. They contain the answers and beliefs to significant questions and are unique and individualistic to each organization.)
And because all the above are humanly driven, you need to install a performance driven corporate structure which is deployed down to a performance driven functional structure including job performance specifications. NOT JOB DESCRIPTIONS. And finally install a reporting, accountability and communication framework. Then you have the ingredients of a performance culture.
Then and only then, you can have a pretty good idea of performance levels from top down to team and where necessary individual level. Then you can link overall business performance to team and individual performance. Then you can assess and identify beautifully and objectively high performers, skill levels and provide and streamline resources effectively.
Then, you can design a beautiful system of positive as well negative incentives including remuneration system based on an objective performance and not merely on an opinion. High performers in any business, love such system. Guess what? Poor performers hate it!
Instead of the above a lot of organizations through HR, pull a performance appraisal template out of the drawer it may be google or a seminar and make some changes in an effort to adapt it to their company and then start implementing it. DISASTER! They pay huge amounts of money for paperwork (could be digital), administration, frustration and lots of time by everyone to complete the process without any noticeable value. Actually, often the system creates more problems than solutions.
THERE ARE NO SHORTCUTS TO HIGH PERFORMANCE, LIKE THERE ARE NO ASPIRINS FOR CHRONIC DISEASES!
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Strategy and Performance Management
Expert / Business Consultant / Trainer
B.Sc. Mechanical Engineering
M.Sc.Engineering Management, US