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PERFORMANCE MANAGEMENT
We've been trying to write a newsletter about performance reviews for months and we kept finding good reasons for putting it off -- "My files need organizing"; "My computer is down"!!
Then we realized that our resistance to discussing this subject was based on old data -- where performance reviews, if done at all, mean filling out some bureaucratic form once a year for legal purposes or to justify pay increases. Then we thought about the great work some of our clients are doing, such as linking business and performance plans and implementing 360-degree reviews. For these clients, reviews aren't dreaded, they're not mindless checklists, and in fact are perceived as a tool to help the company achieve its business results and reinforce its core values.
LINKING STRATEGIC BUSINESS PLANS TO PERFORMANCE PLANS
So what are these companies doing?
First, they are acknowledging the critical need for organization change strategies that maximize workforce potential. And what better place to start than with performance.
At Aircraft Technical Publishers, the alignment of strategy, values and individual performance is critical, according to Carol Daniels, Chief Executive Officer. "We believe employee understanding of our business and our values is fundamental to our success," says Carol, "so we evaluate each employee's performance using these criteria."
Birkenstock Footprint Sandals believes performance management should reinforce not only what gets done, but also how it gets done. Their strategic business objectives are incorporated into every employee's performance plan. So too are their values. believes performance management should reinforce not only what gets done, but also how it gets done. Their strategic business objectives are incorporated into every employee's performance plan. So too are their values.
"We want all employees to understand and to be evaluated on our values such as customer service and integrity", says Mary Jones, Vice President of Administration. Birkenstock also uses upward appraisals that ask employees to evaluate supervisors in key management skills such as coaching, team building and delegation., says Mary Jones, Vice President of Administration. Birkenstock also uses upward appraisals that ask employees to evaluate supervisors in key management skills such as coaching, team building and delegation.
Delano Regional Medical Center (DRMC) used employee task teams to design a performance management process that includes frequent feedback, employee-initiated evaluations, and on-time reviews. "We wanted employees to be empowered and also accountable for their performance. We didn't want it to be a manager only process," says Sean O'Neal, President. Periodic progress review forms are sent to employees who are responsible for evaluating their own performance and then setting up the appointment to discuss it with their manager. (DRMC) used employee task teams to design a performance management process that includes frequent feedback, employee-initiated evaluations, and on-time reviews. "We wanted employees to be empowered and also accountable for their performance. We didn't want it to be a manager only process," says Sean O'Neal, President. Periodic progress review forms are sent to employees who are responsible for evaluating their own performance and then setting up the appointment to discuss it with their manager.
DRMC also holds managers accountable for quality, timely reviews by sending delinquency notices signed by the President. Don Miller, Vice President of Staff Relations remembers when they had to send a notice to the President -- and not just for his signature!! "There was no hesitation in sending him a notice," says Don, "our commitment to this process starts at the top."
360-DEGREE EVALUATIONS
Western Digital Corporation is moving towards a process that captures a 360- degree view of performance. Says Winnie Strohmeyer, Team Leader, Compensation and Benefits, "We need to get performance input from more people than the manager. Not only do traditional systems place great pressure on managers, but in today's constantly changing business environment, they don't provide an accurate view of how an employee is truly performing." Western Digital Corporation is moving towards a process that captures a 360- degree view of performance. Says Winnie Strohmeyer, Team Leader, Compensation and Benefits, "We need to get performance input from more people than the manager. Not only do traditional systems place great pressure on managers, but in today's constantly changing business environment, they don't provide an accurate view of how an employee is truly performing."
360-degree evaluations gather input from all those who depend upon and are impacted by an employee's performance -- the employee, manager, team members, direct reports and, internal and external customers.
Many of us work in teams and need feedback from the team on our effectiveness as a team member, and how we're contributing to the team's success and results. If our role is to manage, we need to listen to what our employees are saying about our managing skills and where we need to improve. And most important, we need to get input from our customers on how well we're meeting their needs.
In the December 13, 1993 issue of Fortune, Jack Welch, CEO of General Electric says: "To imbed our values, we give our people 360-degree evaluations, with input from superiors, peers, and subordinates. These are the roughest evaluations you can get, because people hear things about themselves they've never heard before. But they get the input they need, and then the chance to improve."
WHERE DO YOU START?
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Make performance management a strategic tool. Use it to focus employees on your business and customer needs. Incorporate it into your TQM and process improvement efforts.
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Champion your values. How results are achieved reflects your company's culture and values. They should be at least as important as what is achieved. It won't help to achieve your profit goals, if you alienate your customers or team members in the process. When you make values like teamwork important, you can shape and reinforce behavior.
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Bring the voice of the customer into the process. If you're serious about customer service and value, let the customer evaluate your performance in meeting their needs.
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Use a 360-degree perspective. Recognize that in today's work environment, the boss doesn't always know best. Gather performance data from as many sources as are impacted by the person's performance.
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Take time. Companies with effective processes invest lots of time in employee development. The objective here should be to help employees develop to their fullest potential, thereby improving your company's performance.
