Tag: performance management
Most performance evaluation systems don’t work. They seldom improve performance and they certainly don’t protect your company from lawsuits. More than 40 years ago, Dr. W. Edwards Deming stated that performance evaluations are more destructive than beneficial. So what does work? Take this four-part approach:
- Have a clear understanding of expectations. Ask the person you manage this question: What are the three most important things you do every day? Chances are that the answer you get won’t be the one you expected or hoped for. Once you’re clear on expectations on the three most important things the employee does every day, try to help them allocate 80% of their effort toward them.
- Know the benchmark. HR That Works users can look at the Benchmarking Worksheet. Be very clear about what good performance means. Ask this question: “How would they know if they were doing a good job without having to ask me and without my having to tell them?” Until you can get to this level of understanding with those three most important factors of job performance, any performance appraisal process will be meaningless.
- Be clear about responsibilities and accountabilities for performance. Managers are responsible to employees, not for employees. This means that they must put the employee in a position where they are capable of succeeding. It then becomes the employee’s responsibility to succeed. If people aren’t performing up to standard, first ask the question, “Is it the system? Have we stuck a round peg in a square hole? Have we put them in a position where they’re not capable of succeeding?” Is the employee recycling the manager’s ignorance? If your answer to this inquiry is that it’s not the system or the manager, then find out if, for any reason, the employee believes they don’t have the skills or desire to do the work.
- Deal with poor performance NOW. Get a plan in writing. Make sure performance turns around within 30 days or let the employee go.
Sometimes we make things sooo complicated. Performance management is one example. In the old days, we gave people a job description, told them what to do, and graded them annually on a scale from 1 to 5 in a number of categories depending on how well they “performed.” This approach was based on the notion you can control an employee’s performance — and it doesn’t work anymore! In fact, more than thirty years ago, Dr. Edward Deming stated, “Performance evaluations are more destructive than beneficial of performance.” So what does work?
Here’s a common sense approach to consider. If you think I’ve missed anything, please let me know:
- Make sure the employee’s skill sets and personality match the task at hand. In the hiring process, we have to use skill tests and character assessments to understand the strengths and weaknesses of any candidate. This avoids jamming round pegs into square holes. Assuming that we’ve created the right “fit,” the process continues from there as the employee develops. Periodic skill testing and character assessments continue to make sense. We can match our training programs to help improve perceived weaknesses or enhance strengths.
- Know the plan and have a plan. Peter Drucker stated that management tends to recycle ignorance. Dr. Deming said that most employee problems are management problems. The starting point is for management to communicate with specificity the vision, mission, values, and strategic goals of the company and the department. Employees have to know the big picture in order to perform at their best. Unfortunately, this communication generally comes once a year in a speech to the workforce and lacks any precision. As discussed in the HR That Works Training Module on Performance Management, annual goal setting makes no sense in today’s environment. Instead, set goals in writing, make them 30-90 days out and visit them for 15 min. each week.
- Make sure employees can answer these questions:
- What are the three most important things you do every day?
- How would you know you were doing them well without having to ask or without being told?
Until employees can answer those questions with precision, any performance management evaluation is rendered meaningless.
- When employees don’t perform, first check the system. Most employee failures are system failures. Nine out of ten people want to do a good job every day. If an employee isn’t performing, first check to see how management could be causing the problem. Do people lack the necessary skill sets? Are they clear about their job duties? Is your management style demotivating them? IS everyone on the team cooperating?
- If it’s not the fault of the system, have the employee own the problem. Under the traditional theory of discipline, management gives an oral warning, followed by written warning, perhaps leave without pay, and then termination. Throughout the process, management owns the problem. If it’s not management’s fault, then the employee should be made to take responsibility. But nobody has a form to do that. If you’re an HR That Works user, consider the Employee Correction form, which places the responsibility squarely on the employee’s shoulders. It makes people acknowledge their deficiencies in writing, what they intend to do about them, and what the consequences should be if they don’t meet their own expectations. We find that when responsibility is placed properly, employees intend to be rougher on themselves than management does.
- Consider a performance improvement plan. Finally, once everybody acknowledges their responsibilities, have a plan for moving forward. Depending on the concern, make it from thirty to ninety days in length, but check in within the employee at least every few weeks. If, after that time, they still can’t or don’t want to “get it” then it’s time to liberate them!
Performance management isn’t rocket science. When people are doing things they can do well and enjoy doing well, they don’t need to be motivated. They’ll want to perform. It’s management’s job to place employees in a position where they are capable of, and responsible for, their success.