Tuesday, September 27, 2016

3 Factors to Upgrade Your Performance Management Program

A huge upwardly directed arrow with people around

The better your performance management training, the better your performance management system works…and the better all-around for your high performance organizational culture.

If you really want to tune up the overall performance of your employees, you need to consider three factors:  alignment with the organization’s strategy, talent capabilities for now and for the future, and a corporate culture that fosters positive employee engagement. Let’s take them one by one…

Organizational Alignment
We define organizational alignment as the optimum combination of business strategy, corporate culture and talent to maximize performance.  Our organizational alignment research shows that highly aligned companies grow 58% faster, are 72% more profitable and outperform unaligned companies in terms of:
Customer Retention 2.23-to-1, Customer Satisfaction 3.2-to-1, Leadership Effectiveness 8.71-to-1, and Employee Engagement 16.8-to-1.

Unless your work force understands, accepts, agrees with, and commits to the values, vision and purpose of your organization, their energies will be diffused in different, and perhaps competing, directions. All functions need to be clear on the company strategy for success so you are all pulling together and toward the same goal. Performance goals in sales and marketing should align with performance goals in manufacturing, for example. Imagine if those in manufacturing were pushed to sacrifice product quality for on-time-delivery while the performance of sales was dependent on product quality and reliability.

Talent
You need to have the right people in the right place at the right time with the right competencies and attitudes to execute the business strategy. When you align your talent with your strategy and culture, performance is more a matter of continuous improvement than measuring the status quo. But you need more for overall organizational success…you need the resources and knowledge sharing that supports your talent. Talent, timely information and resources need to work in concert to maximize performance.

Employee Engagement
You have the strategy, you have the talent, you now need the culture that engages, retains and grows your work force. When workers are fully engaged, they almost manage their own performance. They look at the agreed-upon success metrics for guidelines and then figure out what they need to get even better. The key is that they care. They want to do their best because they want to contribute meaningfully to the company enterprise, they are committed to team goals and they have their own high standards for excellence.

We recommend companies involve their employees as much as possible in the performance management experience. Define together the goal of performance management and performance management training. Ask individual employees what they need to get even better at what they do. Agree upon goals and measures that will be tracked and then discussed on a frequent basis. And, most important, make sure your managers have the communication skills to give and receive feedback effectively…always with the desire to support their team’s growth and success.


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