Performance Management
Goals and Targets:
It is important to set goals for Performance Management, either to address specific people and/or performance issues in the organization. Once goals are set, then specific interim and final targets will be established for attaining each goal.
Assessment:
There is a variety of Assessment methodologies ranging from simple (less assured) to sophisticated (more assured). The applicability of each approach is directly dependent on the depth of investment an organization is prepared to make in the Performance Management. The investment is in resources, time and most importantly commitment of the leadership and appetite for change.
Differentiation:
Once individuals are assessed, a differentiation of performance needs to take place to create bases for reward and ways for improvement. Differentiation may be “hard” such as applying some sort of forced distribution, or it may be softer and more related to the absolute performance and contribution of the individual. Typically, a forced distribution is better geared for awarding proportionate rewards out of a limited pool. However, it can have significant demoralizing effects on individuals and propagate a perception of unfairness.
Development and Reinforcement:
Reinforcement is the behavior shaping and adjustment effort of the organization in order to reward and improve desirable behaviors, and penalize and reduce undesirable behaviors. Again, there is a tremendous range in sophistication and effectiveness, and a strong correlation with organizational culture, workforce demographics, industry and geography, among others.
Development is the effort of improving and growing the competence of the individuals with the aim of improving performance and organizational capability. The instinctive correlation of development is with training, but there are many factors that come together to attain effective workforce development, such as Coaching, Job Exposure and Rotation, Empowerment and Motivation.
Performance Management Models and Systems:
We look at systems in place in terms of practicality, culture match and effectiveness. We fine tune the systems, or we can implement new ones that are better fit for the organization needs. We can go as deep as needed within the Performance Management framework of your organization to adjust and improve its impact, or we can propose and execute a revamp/new system implementation.
Organizational vision, culture, leadership style, business environment, worker demographics, and most importantly, appetite for change, should determine the approach best suited for the organization.
These are some of the PM models along the spectrum. It is critical to adopt and adapt a model that is most effective for the specific organization.
P3A will work with various models of Performance Management. Depending on the specifics of customer requirements, culture, goals and appetite for change, a suitable model or a hybrid will be developed and implemented, while constantly estimating and monitoring business impact and effectiveness.
