We all know the rule – do what you’ve always done and get what you’ve always gotten. That applies to most everything; performance management is no exception.
You would think that with more than 50 years as a business practice, at least some of us would have cracked the code on effective performance management. Well … some of us have … unfortunately, a very few. Only 25 percent of the organizations participating in Brandon Hall Group’s 2014 Performance Management Study are high-performing when it comes to performance management. Everyone else is average at best and another quarter of those are just plain poor.
If I were a CHRO or Chief Talent Officer or CEO reading this, I’d ask the obvious: 1) so what makes an organization high-performing in performance management? And 2) so, what if I am … what difference does it really make?
Our October 2014 Performance Management study, participated in by more than 200 global companies, revealed 10 leading practices of today’s high-impact performance management. These practices look decidedly different than those of the past. Let’s take a look at the side-by-side comparison:
So what difference does it really make if an organization’s performance management aligns with the 10 leading practices revealed in our 2014 Performance Management study? What real business difference does it make the answer is simple, and downright compelling: BETTER BUSINESS RESULTS.
Take a look at what our survey data said:
If you like what you see regarding business impact (and who wouldn’t?), I would highly recommend commencing the transformation of your Performance Management process by putting up positive signs of being committed and compelled to move the process from traditional to modern-day. You should expect that the transformation will be a journey but, like breaking any bad habit, getting started is a key to success. In talking with the CEOs and other business leaders at high-performance companies, here are five critical actions they have executed on:
- Teach your managers to be effective development coaches.
- Eliminate forced distribution.
- Engage executives in performance management.
- Hold leaders accountable for developing employees’ strengths.
- Automate performance management and integrate it with other talent processes.
Taken together, all five actions will jump-start the effectiveness and business impact of your performance management.
Despite its ongoing flawed approaches, performance management is requisite to business success. I cannot imagine an organization doing a good job of managing its talent without gathering information about how well their employees are performing their jobs. And, I cannot imagine organizations holding on to the traditional approach to performance management and expecting to achieve and accelerate their business results.
What other actions are you taking at your organization to transform the business impact of performance management? What other fresh ideas do you have to improve the effectiveness of this old-time business practice?
Until next time…
-Laci Loew, Vice President and Principal Analyst, Talent Management Practice, Brandon Hall Group
To read the original post on the Brandon Hall Group Blog, please click here.