The Key Considerations of
Performance Management
The key to ongoing business success
lies not just with the products or
services you offer, nor the systems
and technology that you use
(although both of those things are
certainly important!).
In reality, the most essential contributing factor to the
success of any organization is the people behind that
organization. No business can achieve its organizational
goals without its people driving progress, maximizing
productivity and searching for improvements.
For that reason, proper Performance Management
plays a critical role in ensuring that a business remains
successful over the years. HR departments, as the unit
responsible for overseeing the wellbeing and productivity
of employees, have a critical role to play in this.
Taking the time to establish performance standards,
and investing in communicating with employees
and understanding their performance, can allow
HR departments to truly demonstrate their value
to an organization.
However, there are a number of key considerations
that HR departments need to take into account before
launching into a Performance Management program.
Talent Management Solutions
Talent Management Solutions
Performance Management:
What you need to know
Common performance
management pitfalls to avoid
The first priority of any Performance Management
strategy should be aligning that strategy with the
wider organizational goals of the business.
There are a few key errors that HR departments need to avoid when
implementing a Performance Management strategy.
HR departments need to shift their conversation and liaise with
senior management in order to understand the priorities of the
business, and this needs to be an ongoing interaction. Understanding
the potential changes that are coming will enable HR departments
to support the business’ strategic goals by aligning key performance
indicators with these objectives, and ensuring that the right people
are in place well in advance of any major initiatives.
A good Performance Management
strategy needs to be fact based.
For HR departments to drive effective Performance Management
and achieve business goals, they need to consider the information at
their disposal and demonstrate practical results to decision makers.
In this respect, Performance Management needs to be driven by
information rather than instinct. HR departments need to focus on
key areas such as organizational objectives and ensuring those goals
cascade down to every employee in the organization.
The first, and foremost, is the failure to understand the business
goals, objectives and strategic plans - both at C-level and on the floor.
In order for Performance Management to be truly strategic, it must
be considered holistically with the big picture in mind, and the input
of business leaders is essential to understanding this. Ensure your
decision makers, managers and employees understand how a good
Performance Management strategy will affect them and the benefits
it will bring to the organization.
Another key mistake is failing to showcase the business benefits
that can be achieved when the performance program is in place and
part of the organization’s fiber. Reviewing the engagement and
productivity of employees should be an ongoing exercise, with the
Performance Management strategy itself evolving and changing over
time to meet the changing objectives and needs of the organization.
By being aware of these considerations, your HR department can
deploy a Performance Management strategy that will drive real
results and help your business achieve common goals.
Keep in mind that a solid Performance Management
strategy should both highlight areas where performance
is lacking, and those areas where it is overachieving.
Once identified, strategies to lift current performance,
or to award and recognize exceptional performance can be
implemented. Succession planning, for example, is one of the
areas linked to Performance Management outcomes, as well
as the larger business strategy.
Above all HR departments need to keep the objectives of the
business front of mind, as the guiding light for any strategy they
are implementing. Start down this path, commence measuring
improvements and that seat at the boardroom table will no
longer be out of reach!
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