Establish measurable goals and objectives for employees
Assess achievement of those goals and objectives
Use this information to improve performance (through development and reward)
Performance management is management!
Why do we do Performance Management? Bersin & Associates 2010
Summary of the nine ‘ A ’ level performance drivers and the impact for performance management. Building the High Performance Workplace , CLC, April 2003 Performance Management Process Category Performance Driver Overall performance improvement (%) Direct Impact on performance (%) Informal feedback Fairness & accuracy of feedback 39 34 Performance culture Risk taking 39 29 Formal Review Emphasis on performance strengths 36 31 Performance Management System Employee understanding of performance standards 36 31 Performance Culture Internal communication 30 27 Informal Feedback Manager knowledgeable about performance 30 30 Job opportunities Opportunity to work on the things you do best 29 25 Informal Feedback Feedback that helps employees do their jobs better 26 20 Job opportunities Opportunity to work for a strong leadership team 26 26
What happens if you don ’ t manage performance?
No clear objectives and direction
No feedback to get people back on track leading to poor productivity
Low levels of training & dev (because it wasn ’ t identified in the first place)
Defining Performance - Objectives KEY PERFORMANCE AREAS OBJECTIVES or OUTPUTS ACTIONS MEASURES or KPI’s Sales Sales Targets set in Business Plan achieved Compile and maintain a store call plan Store plan available and up to date Call on stores according to store plan Stores visited once every 2 weeks Time efficiency maximised Store manager or Dept Supervisor met Stock levels and expiry dates checked Orders compiled for store approval Opportunities identified and recommendations made Store report form completed
4. Case Studies Bonuses linked to performance Improvement in communication Positive feedback on ease of use Higher levels of participation Measurable sales indicators Reduced sales head count with no loss of productivity