Performance management comments

1. Performance management comments
One of the four core competencies defined by the Institute of Certified Professional
Managers is management control. In the design of machines and systems control is
maintained by using feedback. The feedback loop in a machine maintains the stability of
the machine's performance by continually measuring the difference between and expected
state and the actual state. This information is used to adjust the machine's performance so
that it remains stable and continues to produce a predictable outcome. Feedback is just as
important to producing consistent performance when the 'machine' is a business. Here the
primary components are not gears and circuit boards but are individuals and teams and
yet the same principles for feedback are applied by successful managers. The key
elements of successful feedback are 1) it is frequent, 2) it is specific and describes the gap
between what is expected and what is being done, and 3) it is used as the basis for a
dialogue on how to close the gap.
Too often the model for feedback in corporations is the annual performance review. This
is simply a case of too little too late. Watching an individual or team struggle with
performance and not providing them with feedback is like watching someone drown and
not throwing them a life preserver. Feedback is not a punitive act, it is a gift. The more
immediate and specific feedback is the more effective it is in producing results.
Effective feedback is delivered using facts and data. It objectively describes the results
that are expected and the results that are being achieved. Closing this gap is the objective
of providing the feedback. Effective feedback is free of assumptions, attributions, and
judgment. It sounds like, 'Last month his team had $100,000 in sales. The expectation for
sales teams is $150,000 a month. I would like to talk about how to close that gap'. It does
not sound like 'This team is not working hard enough and its time all of you got serious
about getting the job done'. The first example opens the door for a dialogue that lays the
groundwork for sustainable improvement. The second example sets the stage for a
defensive confrontation that will not produce lasting results.
Finally the feedback becomes the basis for a dialogue on how to close the gap. In the
example above it would mean exploring with the team the possible reasons for the low
sales and what actions could be taken to increase sales going forward. This is an
opportunity for a dialogue not a diatribe. It is important to find the root causes for the
disappointing sales and to address them with meaningful actions. Neither a motivational
speech nor a scolding will produce lasting results which, after all, is itself the measure of
successful management.
To enhance the performance in your organization make frequent use of feedback that is
structured around the gap between expectations and outcomes. Paint a clear picture for
the organization of optimal business performance. Objectively describe the actual results
that are being achieved. Share your thoughts on how the results can be improved and

2. invite individuals and teams to provide theirs as well. From this it is possible to create a
successful plan to produce sustainable business results.
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