• Are you dreading that upcoming annual performance appraisal that you give your employees?
• Are you frustrated at how much time you spend on them for little-to-no results?
• Or, are you confused at where to even start because it’s been years since you last had the ‘pleasure’ of providing such appraisals?

Here’s the reality: Managing employee performance is a process, and not a one-time event. It is an approach to leading your people that, when done correctly, leads to individual and organizational success. It also helps establish a shared understanding of what is expected and how it is to be achieved. According to recent research, companies that have performance management programs in place tend to have higher profits, better cash flows, stronger stock market performance, and a greater stock value than those that do not. (Hewitt Associates, 1994). Performance management systems have also been found to directly influence critical organizational outcomes such as productivity, quality, customer satisfaction, and employee job satisfaction. (Development Dimensions International, 1997). The two most important people in the managing performance process are you and your direct report.

How would you like to take the hassle out of performance appraisals, while at the same time have an easy way to give employees difficult feedback? Plus Delta has designed a performance management process that helps easily align the goals of the organization overall so that they’re in sync with every business unit and with the performance expectations of the employees. Here’s a basic overview of the approach, one that has proven to achieve success:

• Clearly define expectations – Make sure each individual is clearly accountable for specific tasks they are expected to perform. This is what someone is paid to do. Individual roles and responsibilities need to be articulated in current and accurate job descriptions – and then communicated clearly so that individuals understand the minimal requirements for the job.
• Set S.M.A.R.T. performance goals – Performance goals go beyond individual job expectations. You should be encouraging continual improvement and growth at every level in your organization. To be effective, these goals must be “SMART” – Specific, Measurable, Action-Oriented, Realistic (but with a stretch), and Time-Bound.
• Conduct reviews like clockwork – Clearly calendared mid-year and year-end reviews give supervisors and their direct reports the opportunity to assess progress towards well defined goals. These regular reviews also help determine when new goals might be needed. They are easy to conduct once a standard performance appraisal form is created.
• Provide regular coaching and support – Informal weekly or monthly “check-ins” with your employees will be well received and will provide a regular opportunity for interaction and feedback that will help team members further develop existing skills.

The real key to success in managing performance is this: It is an ongoing and iterative process. The greatest challenge in successfully managing employee performance is not specifically about the individual employee. It is in integrating this performance management process with the organizational objectives and keeping the two expectations in line. As the needs of your business change, performance expectations and goals need to follow suit. Flexibility, clarity of expectations, and commitment to continuous feedback all contribute to effective performance management, as does making sure that these benchmarks are clearly aligned with the organization’s overall objectives.

When implemented properly, there are several benefits of following Plus Delta’s four-part performance management process. First, effectively managing employee performance provides a clear benchmark for performance expectations. In addition, this approach establishes a framework for discussing employee capabilities in a meaningful way. It also helps to readily identify performance improvement opportunities while providing useful information for continuous goal-setting.

Plus Delta can help enhance the success of your performance management process. To learn how to create a culture within your organization for encouraging performance improvement and growth, please call Dr. Jeremy Lurey directly at +1 (310) 589-4600 or send him an email at jslurey@plusdelta.net. You can also visit the Talent Management page of our website for more information.

Note: This feature was originally published and distributed in Plus Delta Consulting’s e-newsletter in February 2006