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Why have a Performance Management Programme?

A lot of successful businesses run quite happily without a formal Performance Management programme, but consider the following:

Studies performed by various institutions have time-and-time again shown that well executed Performance Management programmes can have a direct effect on employee performance, thus directly impacting the businesses bottom line.

Business Planning is the way to identify and document your business goals and then develop the strategies and actions to achieve these goals, and at the same time provides the metrics for tracking your goal achievement progress.

To do this effectively employees should be aligned to the company's business goals, as it is through everyone working together as a team that these goals will be achieved. It has been shown that goal setting is an important element in employee motivation. When you personally achieve one of your business goals, it empowers you, giving you the momentum to become more successful - imagine harnessing that energy in all your employees!

In addition other benefits are enhanced communication, full visibility on the businesses goals or objectives for everyone, an opportunity to address performance problems and improve employee moral - everyone knows what the expectations and long term aims are.

Going about it

Your Performance Management solution should meet your business style, be simple to complete and use - remember why you have a performance management programme - to align your employees to your business goals, to provide a forum for discussion and communication with the employee about performance and how to improve it - all to achieve Business Performance Improvement.

To watch out for

As with all processes to engage with employees it is important to fully and clearly explain why the programme is in place. Remember this is a two-way process of communication and should be a living process and not something that is picked up one or two times in a year. There are a number of key areas to watch out for:

• Waiting for the performance review to give feedback is not the best way - give feedback on a regular basis - there should be no surprises at the review time
• Keep notes throughout the year and share with the employee so that it is not just the most recent work activities that are discussed
• Think about the impact on the employee you want, and communicate your feedback accordingly - look for the win-win solution
• Feedback must be constructive at all times, even if it is being critical
• The performance review is a two way communication, so make sure you listen and keep the meeting interactive

Improving the process

All processes can be improved or changed and it is important to listen to feedback from both the managers and employees as to what works and what does not - remember one objective of the Performance Management programme is to deliver Business Performance Improvement.

Author: Simon Barnes
Published: 17/05/2010