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Simple and Timely – Keys to More Effective Performance Management

As I wrote in my last article, the traditional annual performance review process is not working. Leaders and employees dread it. And there is little indication that the current model results in improved employee motivation or better business outcomes.

It’s time for a change. It’s time to make performance management a process, not just an event. It’s time to make it simple, timely, and meaningful – for both the employee and the organization.

Here are some examples of alternative approaches to the outdated annual review.

Adobe abolished the annual review several years ago in favor of more regular, informal “check-ins.” Managers and employees meet at the beginning of the year to mutually outline expectations for the year. This clarifies for both the manager and employee what the employee is being held accountable for. Managers have regularly scheduled one-on-ones with employees to provide feedback throughout the year. In addition, employees may also receive feedback from peers and other partners across the company.

Another process – Catalytic Coaching – uses 3 simple forms, 4 types of meetings, quarterly check-ins, and the leader as coach as the basis for leader/employee conversations that:

Identify employee strengths and development areas from both the employee and leader perspectives
Give the employee the opportunity to provide feedback to the leader
Facilitate a discussion of the employee’s career goals
Result in the employee’s personal development plan
Include follow up and coaching from the leader to support implementation of the development plan

A third approach is based on the traffic signal metaphor: stop, start, continue. These are one-to-one conversations or check-ins held throughout the year (or on-the-spot, as appropriate) to determine what the employee should stop doing, start doing or continue doing to improve performance, advance development, achieve career goals, etc.

These are just a few examples of different approaches to performance management. Whatever approach you ultimately decide to use, the following features are key:

Giving regular, timely, specific feedback. If there are performance issues, address those issues “in the moment.”
Recognizing strengths rather than just focusing on weaknesses. Give employees opportunities to build on their strengths and develop in the areas where they are not as strong, relative to the needs of the organization and their own career goals.
Adopting a coaching mindset. Feedback should be a development tool, not a report card. Make the process forward-looking rather than backward looking. Train all managers to be coaches rather than evaluators.
Asking for their feedback. Create an environment where employees seek feedback and view it as a growth opportunity. Do this by setting the example. Ask for their feedback – “What can I do better?” “How can I help you?” – and then act on it, as appropriate.
Having the career conversation. Show interest in your employees and their aspirations by having a career conversation. You may find that they have under-utilized skills or interests that you could leverage elsewhere in the company or call upon for a new project or business opportunity. The career path doesn’t necessarily have to be vertical; especially in smaller companies, providing cross-functional experience can be beneficial to both employees and the organization.

Have you taken a hard look at your performance review process lately? Are you giving your employees feedback only once a year or (worse) not at all?

Employees need to feel challenged and recognized. If you’ve been doing the same old, same old, when it comes to your performance review process, I highly recommend that you consider “disrupting the process” to create a feedback strategy that is simpler, more real time, and more effective.

If you are ready to review and change your performance management process, I’d love to work with you. Please contact me at michelle@connecttohr.com.

Now is the Time to Revamp Your Performance Management Strategy

This is the time of year when many organizations conduct what is often referred to as the “dreaded annual performance review.” For many years, leaders and HR professionals have been talking about revamping the traditional process that only 28% of organizations say “positively impacts business indicators.” (according to a Brandon Hall report)

The COVID-19 pandemic has reignited the need to transform the process. And the trend is pointing toward a more simple, agile, timely and inclusive approach to performance management.

So how do we make the process more valuable to the employee and to the business?

Keep it simple. It’s been a challenging year for everyone. Health concerns. Uncertainty in the economy. Adapting to a new way of working. Juggling pressures at home and at work. The goals set prior to the pandemic may no longer apply. Forget the ranking and rating and lengthy narratives. Have a conversation. What’s going well? What’s not working? What’s needed in terms of additional support, additional training, additional effort?

According to the Brandon Hall report, the top performance management priorities for managers in 2021 are the quality of manager check-ins with employees to provide feedback and coaching and the frequency of those manager check-ins.

Make it timely. Waiting until the annual performance review date to manage performance is a disservice to employees and to the company. Make performance management an ongoing activity. Especially now when so many are working from home, it’s even more important to schedule regular 1:1 meetings to discuss challenges and opportunities. Take a holistic, empathetic approach, recognizing that the current crisis may be impacting performance.

Consider making performance reviews and compensation reviews separate. It may be tempting this year to forgo performance reviews because you are not in a position to adjust compensation. But here’s the thing. Employees want and need to know how they are doing. On a regular basis. And they are more likely to look forward to and engage in those discussions if they are not distracted by thinking about their potential raise. Of course, if you make this change, be sure to communicate it in advance to employees.

Performance management should be a process, not just an annual event. COVID-19 has shown us that businesses and leaders need to be agile, and able to quickly adapt as circumstances change. Transitioning to a performance management process that is simple, timely and consistent is a step in that direction.

Tune in next time when I’ll give some specific examples of simple performance management tools and share why it’s so important to create development plans as part of the process.

Focus for Effective Performance Management

In my last article I talked about the importance of making performance management an ongoing process versus just an annual event. Performance should be managed in the spirit of learning and development, helping employees build on their strengths and embrace the challenge of acquiring new skills and responsibilities. Leaders should model this by continuing to develop their own capabilities.

But with goals to meet, teams to manage and issues to resolve, how do you, as a leader, go about achieving this?

It takes focus. Daniel Goleman, author and psychologist, says that leaders need three kinds of focus:
1) Inner focus, 2) Other focus, and 3) Outer focus.

Let’s apply this to the performance management process.

Inner focus. Inner focus is the ability to monitor your thoughts, feelings and emotions. This may be the hardest focus to achieve because it means you actually have to stop. And think. And few of us, in our ever-busy, need-to-achieve world, give ourselves that time. Yet those who do, as indicated in the Inc. article, Why Successful People Spend 10 Hours a Week Just Thinking, reap multiple benefits. Warren Buffet estimates he has spent about 80% of his career reading and thinking. Bill Gates takes a week off twice a year to spend time reading and reflecting. Give yourself time away from the noise to reflect on areas where you might better utilize team members’ skills, where they need to improve or prepare for what’s next, and what you personally need to do to prepare.

Other focus. This is the ability to empathize with others. Other focus will help improve your relationships with individual team members and the team as a whole. Use other focus to give employees regular feedback – both positive and developmental. Ask how you can help. Listen. Ask for their feedback. Position yourself as a coach with the intent to help them achieve team, organizational and personal goals.

Outer focus. Outer focus is the ability to understand the larger forces/systems in play and to think strategically. This is where you set the vision for the team and communicate where the organization is headed. Help each team member understand how their goals tie to the team goals and how the team goals tie to the organizational goals. When employees can visualize how what they do impacts the direction and success of the organization, they are more likely to be engaged, perform better and stick around. And that’s what effective performance management is all about.

If you need help in making performance management a process and not just an event, please contact me at michelle@connecttohr.com.

Performance Management is a Process, NOT an Event

Despite the fact that leaders and employees alike dread the annual performance review, a 2018 survey by research firm WorldatWork found that 80% of companies still use a formal performance review process.

Employees need to know how they’re doing. And they shouldn’t have to wait to some future date to get that feedback. No news is NOT good news when it comes to keeping employees engaged (by acknowledging their accomplishments) and keeping your team and organization on track (by addressing performance issues). A review meeting once a year is not effective. In fact, research shows that annual employee reviews have minimal if any effect on individual or organizational performance.

So what’s the alternative?

Make performance management a process not just an event. Give employees regular, timely feedback. Be specific. Acknowledge their accomplishments and share how their performance positively impacted the team and/or organization. Discuss any issues “in the moment” to help reestablish expectations and initiate the improvement process sooner rather than later. If you allow a performance issue to continue without bringing it to the employee’s attention, he or she may not even realize it’s a problem.

Adopt a coaching mindset. Feedback shouldn’t be a report card, but rather a development tool. Help your employees build on their strengths and develop in the areas where they are not as strong – relative to the needs of the organization – today and tomorrow – and to their own career goals. When there’s an issue, ask good questions to determine the root cause – is it an ability issue? A training issue? An attitude issue? Then mutually decide the appropriate solution.

Ask for their feedback. Create an environment where employees seek feedback and view it as a growth opportunity. Do this by setting the example. Ask for their feedback – “What can I do better?” “How can I help you?” – and then act on it, as appropriate.

Effective leaders work on helping their employees develop and grow, and also work on growing themselves in all the skills and competencies they need to successfully lead their teams and organizations. This takes focus. Daniel Goleman, author and psychologist, says that leaders need three kinds of focus: Inner Focus – the ability to monitor your own thoughts, feelings and emotions; Other Focus – the ability to empathize with others; and Outer Focus – the ability to understand larger forces or systems.

Tune in next time when we’ll look at how you incorporate these three focus areas into your performance management conversations.

Employees Want Regular and Timely Feedback

In my last blog I talked about how to have a difficult conversation. For some leaders, giving feedback is considered a difficult conversation, especially if the feedback is negative. But here’s the thing. As a leader, one of your responsibilities is developing your people. And one of the best ways to do this is by giving regular, timely feedback.

And guess what? Employees want to receive regular feedback, even negative or “redirecting” feedback. In a study reported in the Harvard Business Review, 92% of respondents agreed that “Negative (redirecting) feedback, if delivered appropriately, is effective at improving performance.” In that same study, 69% of respondents said they would work harder if they felt their efforts were better recognized.

So when your employees are performing well – let them know it. And when they need improvement – let them know it. Don’t wait until the annual performance review. Without acknowledgement of their good performance, those who are performing well may lose momentum. And without feedback and coaching to improve poor performance, employees may assume that they are doing just fine.

Waiting until the annual performance review significantly reduces the impact of the feedback – whether positive or constructive – and in cases where improvement is needed can often prolong and increase the impact of undesirable behaviors. Here are 5 tips for giving feedback effectively.

Make it timely. Saying “thank you” or “good job!” soon after an employee has done something extra encourages them to continue. Likewise, discussing performance issues “in the moment” helps reestablish expectations and initiates the improvement process sooner rather than later. If you allow a performance issue to continue without bringing it to the employee’s attention he or she may not even realize it’s a problem.
Be consistent. Be sure you’ve communicated expected performance levels and behaviors to all your employees and then give feedback consistently based on those expectations. This will prevent the appearance of favoritism.
Make it clear. Use the SIE format – Situation, Impact, Expectation. State the situation – “Being at work on time is essential for us to be able to meet the needs of our customers. You’ve been late three mornings in a row.” State the impact – “When you’re late, others have to make your deliveries which impacts the schedule.” State the expectation – “I expect you to be at work and ready to start deliveries by 8:00 am every day.” When employees understand the adverse impact of their actions they’re much more likely to change them.
Write it down. Writing down employee issues serves two purposes. First, it provides the paper trail necessary to prove you have a valid reason for corrective action or termination. Second, it holds the employee accountable for their actions.
Own it. Feedback needs to be about something you’ve observed, not something you’ve heard second hand, and it should never be delivered when you’re angry or upset. Also, find a private place to have your developmental discussion.

Both positive and constructive feedback should be given in the spirit of recognizing people for what they achieve and helping them be the best they can be.

6 Tips for Developing a Performance Improvement Plan

As I’ve often said, performance management is an ongoing process not just an annual event. As such, when there’s a performance issue it’s important to deal with it in a timely manner. The goal should be – if possible – to turn the situation around and get the employee back on track versus terminating them. This requires a plan. Here are some tips for developing an effective Performance Improvement Plan (PIP).

Keep detailed documentation. When it’s clear that there’s an issue – the employee is regularly late, absent without an excuse, or submitting sloppy/incomplete work, for example – note the dates and description of the incidents. This will document a pattern of poor behavior and will serve as a backup in the event of a legal dispute down the road.
Have an informal performance discussion. Hopefully you are having regular one-on-ones with your employees. If so, that is the perfect time to clarify expectations and alert the employee that there’s an issue. Give the employee the opportunity to explain and to offer ideas for a solution. It may be that the issue could be resolved by a change in work schedule or additional training. Be sure to share the impact of the employee’s under-performance and that without improvement, the next step will be a formal PIP.
Create the plan. If the performance doesn’t improve after the initial performance discussion, it’s time to create a formal PIP. The plan should clearly describe the expected behaviors and specific goals – with deadlines – for achieving those behaviors. Goals should be SMART – specific, measurable, achievable, relevant and timely. Establish a reasonable timeline for the behavior change – long enough to determine whether the behavior change can be sustained, but short enough to take the next step (possible termination) before other people/processes are impacted by the poor performance.
Obtain employee’s agreement and signature. It’s essential that the employee commit to the goals on the plan. If possible, co-create the goals. If the employee feels they’ve had the opportunity to provide input to the plan they are more likely to follow it. As part of your documentation process, and to reinforce the formality of the PIP, get the employee’s signature.
Monitor performance. As part of the plan, schedule regular check-ins to discuss progress. Acknowledge any progress, and also remind the employee that you are looking for sustained improvement.
Formally close out the plan. If the employee fails to meet the expectations defined in the plan, the next step is determining whether termination is appropriate. If the employee follows the plan and shows the expected improvement, acknowledge that improvement and close out the plan. If the employee makes a good effort but doesn’t complete all the goals or you are unsure whether the performance will be sustained, you may want to extend or create a new PIP.

When it comes to Performance Improvement Plans, prevention is the best medicine. You will have fewer PIPs to write if you deal with performance issues in a timely manner, keep lines of communication open with your employees through regular one-on-ones, and are consistently clear about performance expectations.