The document discusses the common management belief that performance management leads to great performance, but argues this is untrue. It claims performance management actually causes disjointed processes, defensive behavior, under-delivery, sandbagging, unhappy customers, scared staff, miserable suppliers, and kills innovation. Several alternatives are proposed, such as focusing on team performance not individuals, using measures but not targets, replacing individual incentives with company-wide ones, and paying people to leave rather than forcing them out. Evidence from companies like Amazon, Zappos and Mars is presented that supports moving away from traditional performance management approaches.

1. Management Beliefs
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2. Sometimes we believe strange things…
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3. The world is flat.
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4. You should never walk on cracks in the pavement.
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5. Some numbers are unlucky.
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6. But our beliefs are only strange
when we see that they are untrue.
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7. Let me show you.
www.flickr.com/photos/chrisjl

8. How many senses do you have?
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9. 1. Sight
2. Hearing
3. Taste
4. Touch
5. Smell
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We have 5 senses.

10. Plus balance!
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11. Make that…
Maybe even more.
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12. As managers we have one of the
strangest beliefs of all.
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13. We believe we must have great
people.
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14. If we have great people…
Then we will have great performance.
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15. So we"
“Performance Manage”"
our staff…
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16. We give clear accountability.
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17. We set targets and goals.
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18. We give robust performance reviews.
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19. Gather 360o feedback…
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20. …incentivise and reward great performance…
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21. …and weed out poor performance!
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22. We believe we must manage
performance
it would be heresy not to.
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23. Heresy is a very dangerous thing.
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24. But our belief in performance management
only creates one thing:
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25. www.flickr.com/jp-

26. www.flickr.com/jp-

27. How do people act when?...
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They have a target to hit?

28. How do people act when?...
www.flickr.com/photoloni
They have a target to hit?
Their head is on the block?

29. How do people act when?...
www.flickr.com/photoloni
They have a target to hit?
They have money at stake?
Their head is on the block?

30. How do people act when?...
Their job is at risk?
www.flickr.com/photoloni
They have a target to hit?
They have money at stake?
Their head is on the block?

31. They’ll do anything to look good.
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32. They’ll do anything to look good.
Sometimes that is not such a great idea!
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33. www.flickr.com/theodevil
So they…

34. Build management silos.
www.flickr.com/theodevil
So they…

35. Focus on the short term.
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So they…

36. So they…
Sand bag performance.
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37. Pull one over on their customers.
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So they…

38. Make suppliers lives miserable.
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So they…

39. Cheat to hit their targets.
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So they…

40. So they…
Never try anything new.
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41. So they…
Never try anything new.
www.flickr.com/brianauer

42. But worst of all… "
“performance management”"
is self fulfilling!
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43. www.flickr.com/ktlindsay
If you tell somebody they are useless…
But worst of all… "
“performance management”"
is self fulfilling!

44. …then they will only ever be useless
www.flickr.com/ktlindsay
If you tell somebody they are useless…
But worst of all… "
“performance management”"
is self fulfilling!

45. Performance Management gives
you…
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46. Performance Management gives
you…"
"
Disjointed Processes
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47. Performance Management gives
you…"
"
Disjointed Processes"
Defensive Behaviour
www.flickr.com/gennie_stafford

48. Performance Management gives
you…"
"
Disjointed Processes"
Defensive Behaviour"
Under-delivery
www.flickr.com/gennie_stafford

49. Performance Management gives
you…"
"
Disjointed Processes"
Defensive Behaviour"
Under-delivery"
Sand bagging
www.flickr.com/gennie_stafford

50. Performance Management gives
you…"
"
Disjointed Processes"
Defensive Behaviour"
Under-delivery"
Sand bagging"
Unhappy customers
www.flickr.com/gennie_stafford

51. Performance Management gives
you…"
"
Disjointed Processes"
Defensive Behaviour"
Under-delivery"
Sand bagging"
Unhappy customers"
Scared staff
www.flickr.com/gennie_stafford

52. Performance Management gives
you…"
"
Disjointed Processes"
Defensive Behaviour"
Under-delivery"
Sand bagging"
Unhappy customers"
Scared staff"
Miserable suppliers
www.flickr.com/gennie_stafford

53. Performance Management gives
you…"
"
Disjointed Processes"
Defensive Behaviour"
Under-delivery"
Sand bagging"
Unhappy customers"
Scared staff"
Miserable suppliers"
And it kills innovation
www.flickr.com/gennie_stafford

54. Performance Management gives
you…"
"
Disjointed Processes"
Defensive Behaviour"
Under-delivery"
Sand bagging"
Unhappy customers"
Scared staff"
Miserable suppliers"
And it kills innovation"
"
Other than that; it works just fine.
www.flickr.com/gennie_stafford

55. On a positive note, it
keeps me in work.
www.flickr.com/smemon

56. What really drives performance?
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57. What really drives performance?
www.flickr.com/familymwr
People or systems?

58. In a data centre it is easy, performance
is driven by the system, not the people.
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59. In a warehouse performance is driven
by the system not the people.
www.flickr.com/gwankho

60. But how about on the track?"
System or person?
www.flickr.com/thehappyrower

61. But how about on the track?"
System or person?
What about the coach or the sports
psychologist?
How about the exercise kit or the diet?
www.flickr.com/thehappyrower

62. We live in a giant network of systems
and processes.
www.flickr.com/carlosvanvegas

63. It is a long time since we just depended on people!
www.flickr.com/practicalowl

64. Which creates a dilemma…
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65. Because you need good people…
…just not at the expense of the system.
www.flickr.com/government_press_office

66. How about fixing
your performance
management
process?"
"
How do you square
that circle?
www.flickr.com/djwtwo

67. How about fixing
your performance
management
process?"
"
How do you square
that circle?
www.flickr.com/djwtwo

68. Obsess about how your team
performs…
…not just the individual’s performance.
www.flickr.com/24874528@N04

69. Worry about measures…
… but lay off the targets.
www.flickr.com/monojussi

70. Replace individual incentives with
company incentives.
www.flickr.com/stuckincustoms

71. Stop forcing people out…
…pay them to leave.
www.flickr.com/grimages

72. Nice ideas,
but is there any evidence to support them?
www.flickr.com/krawcowicz

73. Amazon measure their call centre staff’s
performance
and they coach them to improve.
www.flickr.com/n1ct4yl0r

74. But they don’t
offer a financial
incentive
www.flickr.com/n1ct4yl0r

75. Zappos offer new hires $2,000 to
leave.
Very few take it.
www.flickr.com/scobleizer

76. Mars actively manage out poor
performers
But on very sweet terms.
www.flickr.com/tim_ellis/

77. Still skeptical?
Here is the acid test.
www.flickr.com/traftery

78. If performance management works
Why don’t you give your partner an annual
performance review?
www.flickr.com/armydre2008

79. I’m sure it will go well!
If you wouldn’t do it at home why do it at work?
www.flickr.com/55481995@N03/

80. What do you think?
There are none so deaf as those that will not hear.
None so blind as those that will not see.
~ Matthew Henry
www.flickr.com/ektogamat

81. For more management epiphanies
Visit www.squawkpoint.com
www.flickr.com/reneeanddolan