Managing Performance Process
KEY PRINCIPLES Why have a process for managing performance?
The benefits of a process
The performance review criteria and tools
Annual review and performance rating
Important Dates
Preparing for meetings
Expectations and responsibilities
Outputs from the review meeting
QRG 11
1. Why Have a process for managing performance
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Communicating explicit expected standards of performance
Managing individual performance is at the heart of every successful organisation as it links individual effort and output to overall success.
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Developing Performance
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Rewarding achievement
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Transparent decision making
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Greater clarity and career progression
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Identification of individual strengths
The key messages Managing individual performance is not a mechanistic process that takes place once a year. The assumption is that managers and colleagues will routinely be reviewing progress on an informal basis so there should be no surprises. The performance review meeting provides an opportunity to have greater confidence and credibility to asses individual effort and achievement This Guide outlines the benefits, the approach and the responsibilities.
To the Individual •
Shared understanding of what is required
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Clear links between individual and business objectives
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Clear focus
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Enables constructive feedback on performance
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Aligns training and development with the business Provides performance criteria to assess achievement in a fair and objective way
The aim of managing performance •
To unite everyone behind our organisation’s goals and drivers and our way of working
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To improve overall performance through the alignment of objectives and the development of our people
3. The performance review criteria and tools
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To increase motivation by adopting a fair, focused, transparent and consistent approach
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If your work is going to be reviewed then it makes sense to clarify expectations. You need to know: •
What the standards of output and quality are
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What the desired behaviours are
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What resources you can use to help you
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What resources you can ask for
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What support and development opportunities are available to you
To recognise achievement
2. The benefits of a process for managing performance To the Organisation The process for managing performance is a management tool for: •
Managing the performance of our organisation
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Focusing attention on areas that “add value”
Core Qualities Framework We have established a Core Qualities Framework that sets out the behaviours expected of all employees: Self-Awareness – is self-aware, learns continuously and effectively adapts behaviour in response to feedback. Personal Effectiveness – Makes things happen, operates with resilience, flexibility and integrity. Communication – Shares and listens to information, opinions and ideas using a range of effective approaches. Service Delivery – Understand customer needs and demonstrates our Brand. Making expectations explicit In addition to behaviour frameworks, we also use individual objectives. An objective identifies the specific achievements to be reached by the organisation, department, team or individual. For example, “Achieve a 50% reduction in customer complaints within 3 months” The number of objectives is not set but is likely to be between I and 5 business objectives probably increasing in relation to seniority. Individuals are also likely to have personal development objectives.
To ensure fairness and transparency performance assessment decisions need to be supported with examples of achievement rather than subjective opinion. 5. Important milestones i.
agree objectives
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development review
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performance review
In the time between these there should be regular ongoing dialogue including: •
Feedback
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Listening
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Reviewing
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Coaching
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Supporting
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Adjusting objectives
6. Preparing for meetings Ideally manager and staff member will have an initial discussion to agree a date for the formal review meetings and clarify: •
The key criteria to assess achievement – performance descriptors, objectives
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4. Annual review and performance rating
Underlying principles and benefits of the approach
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The process and documentation
Performance descriptors
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Roles and responsibilities
One of the key outputs from the formal appraisal meeting is the allocation of a rating based on defined performance descriptors that capture how well an individual has performed against the set and agreed criteria.
7. Expectations and Responsibilities
The Senior Team
The individual being reviewed
Give advice and guidance on:
Take a bit of time to get ready for the meetings: •
Consider how well you’ve done against the performance descriptors and objectives
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Evaluate any development activity you have undertaken and consider how well they have enabled you to achieve more
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Think about future training and development needs and how these will improve performance Consider your potential career aspirations
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Give yourself an overall performance rating
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Identify examples to support your thinking
The Manager •
Make the performance requirements explicit
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Talk about performance needs informally
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Assess achievement against the criteria agreed
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Consider what development could improve performance and enhance the person’s career
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Give a performance rating and support your decisions with examples and observations
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Draft new objectives which are cascaded and SMART
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Objectives to be set
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Performance descriptors required
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Available resources and training and development interventions
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Investigate what training and development is available
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Future career opportunities
Ensure fair play and appropriate rewards by: •
Maintaining standards and consistency by taking an overview of how well everyone is doing
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Ensuring all performance decisions are supported with examples of achievements
8. Outputs from the review meeting •
Completed form
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Agreed performance rating
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New objectives Revised or new training and development record
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