What is performance management? It's the antithesis of the old way of thinking, which says that an employee should be able to set goals for the year and greatly improve performance simply based on one all-important, make-or-break annual performance review. By contrast, performance management is an ongoing process involving goal-setting, a dash of career coaching, frequent feedback and constant review of employee performance.
But performance management is also about giving employees the space they need to use their creativity and chart their own course. How do you mix these two seeming contradictions to produce a performance-management system that works for your team?
Key components of performance management
A quick Internet search for "performance management consultants" yields a list of armies of consultants ready to train your staff in performance-management techniques. But many of the most effective performance-management methods are easy to implement immediately:
- Give feedback that's specific — instead of simply saying "good job on that project," specify what was good about it.
- Give feedback that's timely (close to the event) and frequent.
- Focus on behavior rather than personality when giving constructive feedback.
- Be sincere in trying to help correct mistakes and ineffective behaviors.
- Ask permission to give constructive feedback: "I'd like to give you some feedback on how you ran today's meeting — is that OK with you?"
- Ask for your employees' view of situations and give them chances to identify behaviors that they agree to change, ways to improve communication or ideas for increasing output. Then summarize your agreements before ending the discussion and set a date to review employees' progress.
In the world of performance management, constructive feedback is not necessarily negative — and it isn't the opposite of positive feedback. Constructive feedback is a way of helping employees understand how their performance measures up to company expectations so that they can empower themselves and set goals to meet those expectations.
Benefits for you and your organization
All but the most recalcitrant or belligerent employees will benefit from performance management. Managers find performance management exciting because the coaching-based approach works by convincing employees to make behavioral changes without damaging their dignity. The method also improves productivity along the way because it encourages employees to take ownership of projects and use their own creativity and skills more effectively.
On the other side of the manager's desk, employees find that performance management teaches them methods of goal-setting and improved communication skills that serve them well in other areas of life.
Shifting your managerial focus to performance management has great benefits for you, your organization and your employees — and it all starts with a little feedback.