It’s graduation season and report cards are out. If you were grading your company on performance management, how would it rate?
Traditional Performance Management Is Earning an “F”
We’ve written about evolving performance management before and we heard loud and clear from the experts on our HR panel at Goal Summit: traditional performance management is failing. Without changing how and when employees set goals and receive feedback, businesses won’t succeed in the new world of work.
Research shows no one is happy with annual performance reviews—not executives, not managers, and not individual contributors. Even HR teams responsible for performance management aren’t convinced annual reviews provide value. That’s because traditional performance management processes and systems no longer accurately reflect the way we work.
Work Is More Connected Than Ever
In previous decades, organizations were hierarchical and closed. Now they’re networked and open. We work in teams with greater geographical distribution, more matrixed structures, and increased diversity. We also have technology innovation accelerating so fast that how we work is more interconnected than ever. As the pace of work is increasing, priorities are shifting regularly—it’s imperative that businesses learn to operate differently in this changing environment.
Leaders Must Move to a Model of Continuous Improvement
Today’s employees, especially millennials, want feedback more often. For organizations to become high performing (and stay that way), leaders must move from holding feedback till the end of the year to a model of more continuous improvement. Managers need data that helps them provide that frequent feedback within the context of what employees are working on
Enterprise Goal Setting that Informs Performance Management Drives Achievement
If you’re thinking that’s easier said than done, we’ve put together an outline from our experience to help. High-performing organizations take advantage of goal management to encourage cross-functional alignment and team contributions over individual contributions. They create the openness, engagement, and collective thinking that drives innovation and greater business success.
As you move from traditional performance management and introduce enterprise goals into your organization, this time next year, we expect you’ll be giving your organization a higher mark. Your team has great potential. We can help you reach it. Read more about performance management by downloading the performance management whitepaper.