Seven critical components of new performance management
c o v e r
s t o r y
What many organizations think is performance management, is actually just a more elaborate form of goal setting. What then should an effective performance management system look like?
72
By Clinton Wingrove
T
he last year has brought huge challenges to the world, governments, organizations, and individuals. Whilst some have reacted well, others have not. Many organizations are still applying outdated performance management processes, despite mounting evidence that they damage the health of an organization and consume valuable resources that could be used for the greater good. Indeed, some of the fastest-growing technology sales are for products that track, record, and measure the on-screen activity of remote-working employees; that support outdated goal setting and episodic reviews; and for training that focuses on handling difficult conver| FEBRUARY 2021
sations. But, at last some have had a wake-up call and are now rising to the challenge and exploring better ways to manage performance, ones that tap into the inner motivations of each employee. If COVID-19 has taught us anything, it is that some things simply aren’t simple. And, performance management is one of them. What most organizations refer to as performance management, simply isn’t performance management! It is only a simplified process of goal setting with some monitoring, reviewing, and evaluation. Isn’t that performance management? No, not anywhere near! Those are the minimum elements that an organization needs to be
What most organizations refer to as performance management, simply isn’t performance management! It is only a simplified process of goal setting with some monitoring, reviewing, and evaluation. Those are the minimum elements that an organization needs to be able to make decisions about people able to make decisions about people. But they will rarely have any substantial impact on cumulative performance. We have known for decades that, whether or not they are designed, documented, or even trained, all true performance management processes have seven components: 1. Setting direction 2. Clarifying roles 3. Planning and aligning 4. Monitoring and measuring 5. Enabling and enhancing 6. Assessing and evaluating 7. Rewarding and recognizing
