LESSONS IN PERFORMANCE MANAGEMENT
To translate performance management
into performance excellence, the process needs to be considered as more than a
fated check in the box
We now operate in an environment
characterised by an increased margin pressure, multiple stake holders and high
customer expectations; in such a scenario, stretch goals are of utmost
importance. Having a performance management system that is capable of this and
reinforces a high performance culture is therefore a fundamental need.
Unfortunately, most current systems have profound inadequacies in achieving the
objective that they were set out for: that of fortifying performance. The
intent of a system should be to enable future high performance, not just
evaluate past performance. For these reasons, many organisations are moving
away from forced distribution systems such as the bell curve.
To translate performance management
into performance excellence, the process needs to be considered as more than a
fated check in the box.Even though performance management should be granted the
status of being the lifeline of an organisation, managers view it as a process
to comply with and not as a business-critical activity. In fact, this emphasis
on compliance over commitment was rated as a critical talent risk by 43 per
cent respondents in the 2013 KPMG Talent Risk Report India findings. To this
end, behaviours should change as much as the process. The process needs active
endorsement of the leadership team and must be clearly linked to business
strategy.
Many
organisations are getting rid of the `review' word, customarily attached to
performance discussions.Controlling usually manifests in the way the goals are
set an instruction from a manager to an employee.Enabling, on the other hand
revolves around empowering employees, rewiring systems to facilitate their
success and investing in them. Performance conversations should be themed
around: what can I do to help you?', rather than `why has this not been done?'
This is really the difference between abundance-mindedness where the
ecosystem gets behind an individual to offer necessary support and
deficit-orientation where the focus is on calling out what individuals do not
have.
The fundamental faux pas in
conducting feedback conversations is perhaps criticism around an employee's
past performance. Organisations should encourage feedforward: not only
suggesting what to change, but also providing concrete steps to be actioned in
the near future on how to change.Periodicity of conversations is also of severe
importance. In fact, the spirit of performance management gets lost in the wait
for the annual rating. Conversations are a way to reinforce and strengthen
relationships, identify strengths and discover meaningful areas of improvement.
The author is partner & head,
people & change advisory, KPMG in India
|
Nishchae Suri
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ET 1SEP15
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