Critical Insight: Clearly define the objective of the performance management activity.
- The desired outcome for the company, or the business objective of performance management, is to:
a) clearly define the desired business results – the most important work to be done and its related outcomes – for each employee, and
b) actively manage – monitor and enhance – the achievement of those results, within company cultural expectations or norms defined by the corporate values, over time and to improve current and future performance.
- The desired outcome for the individual is a clear understanding of:
a) the desired performance goals – outcomes/results, not activities; these should represent the business value created by the work,
b) how the outcomes will be measured (revenue, cost, speed, satisfaction, etc.)
c) the challenges they are facing and obstacles they will need to overcome,
d) what they have at their disposal to assist them, and
e) the self-assurance† [established by the manager, if necessary] that they can achieve the expected results. Note that this is not self-awareness.
(Many organizations believe performance management is about only identifying compensation amounts/increases and training/development needs [weaknesses as ‘development opportunities’] for the individual. It is often treated as if the manager is a teacher grading a test rather than a coach managing and improving performance.)
† It has been proven that self-assurance, not self-awareness, drives achievement.
- The desired outcome for the manager is the knowledge of what they need to do to ensure their team, and each individual, is positioned and equipped (to have a reasonable opportunity) to be successful and provide optimal business value. They need to have a reasonable estimate of the probability of successfully achieving the overall business goal(s) of the team/area. On an ongoing basis they need to leverage the talents of the individuals to achieve the desired business objectives/results.
