Positive Energy - Are You Making the Right Call

Well, here we are already in the middle of the third quarter of a very difficult business year. In order to avoid a “911” situation, we continue to assess, review and utilize critical data and information to help us navigate through and make informed decisions.

We’ve learned to regularly review the progress of financial markets, our budgets, income and expenditures, our (external) customer service, marketing and business development strategies in order to maximize opportunities to improve our bottom-line results, both now and in the future. Now more than ever…It just makes cent$!

Do you call 911 or 411? It’s amazing to me how many people have told me that if they do receive a review, it’s so focused on the negative that it’s a “fear factor” and a de-motivator. How unfortunate for everyone involved – the employee, the manager and the organization! Many managers and employees (and maybe some HR folks) would love to see the dreaded performance review process go away entirely!

According to a recent article by Adrienne Fox, of HR Magazine, “More than 60% of workers who receive reviews say they don’t do anything to help their future performance.” She goes on to say, “Many regard it as a “meaningless annual rite that force fits complicated human beings into simplified numeric or genetic categories to fulfill an HR directive. At worst, managers abuse systems by inflating ratings of favored employees while deflating the accomplishments of others.”

Did you know…Nearly eight of 10 companies conduct performance appraisals; of those, 72 percent reported being only somewhat satisfied, not very satisfied or extremely dissatisfied with the process, according to a recent SuccessFactors study of 1000 HR professionals.

So why do three-quarters of companies have some kind of performance evaluation system in place where everyone is so unhappy with them? According to Adrienne Fox, here’s why:

In many instances, performance appraisals fail because the forms, the process, or the procedures are antiquated and outdated and/or the managers have not been trained properly in having these conversations. However, the primary reason is that people don’t understand what the appraisal really is.

Let’s get back to basics once again and define a performance review/appraisal: It’s a “formal record of a supervisor’s opinion of the quality of an employee’s work,” says consultant, Dick Grote. “The operative word is ‘opinion.’ Opinion does not mean subjectivity. The magic phrase in any performance appraisal is ‘for example.’ As long as a manager can back up his/her opinion, it is an objective appraisal. If the manager has been paying attention to the employee all year, then it is not subjective because he/she has seen the performance of the employee with his/her own eyes.”

So, what about you and your organization? When was the last time you received or gave a performance review? Was it annually, semi-annually, quarterly? Or, not at all? Was it a 411 or 911 situation? If you haven’t taken the time to meet with your employee(s) throughout the year, then don’t expect to be successful in the end.

Just as we monitor and review budgets, financials and other strategic data to improve business results, we need to look at regular performance appraisals/reviews as a required “411” call – the critical information we need to drive results through the people! This “411” needs to be part of our “P2P” employee strategy and placed at the same priority level - the top of our list – as our other business strategies. Remember…without productive, engaged employees, nothing happens!

As a former people-manager myself for many years, I found it very helpful and productive to give quarterly reviews. They served as a road map for (employee and business) success – talking with employees throughout the year about what they do well and their development opportunities – is fair and proves invaluable to professional development, engagement and, ultimately, bottom-line results! It’s not fair to the employee or the organization to assess performance only on an annual basis or not at all! Think about what would happen if we reviewed our budgets and other business strategies only once a year or not at all! It’s a 911 disaster!

If you’re an organizational leader, HR professional or people-manager, what can you do to make positive changes in your performance management system? Here are some critical success factors:

• Design development and planning phase: Make provisions for executive involvement by having visible CEO and senior management support from the onset.

• Focus on the right company performance measures: Agree as a team on those key performance measures that will give your organization a clear line of sight and the highest degree of confidence it needs to determine how well it is doing in relation to major goal achievement.

• Link job descriptions to the performance management system: Ensure that your employees can see the direct relationship between the job competencies they are required to bring to the job, their job descriptions, the targeted goals and objectives, and expected results in their performance plans.

• Assess performance fairly and objectively: Acknowledge that there will, in all likelihood, be varying degrees of employee performance (hence, performance rating scales). Companies are more likely to achieve the results that they desire when they are conscientious about assessing the talent of their employees fairly and objectively in accordance with clearly delineated standards of performance.

• Train managers in performance management: Make an upfront investment in training to ensure that managers have the skill sets required to participate fully in the performance management system planning process. This should include all members of line management to ensure that everyone is on the same page, speaking the same language and using the same tools and techniques. (Click here for manager’s checklist)

• Pay for Performance: It’s proven - Tying the results of performance appraisals to financial rewards does lead to the performance appraisal system being effective.

• Hold managers accountable for the communication process. Although communication is everyone’s job, ultimately someone must be responsible. Require managers to actively search out, offer and acquire performance feedback on a regular basis. Utilize the “411” vs. “911” approach!

• Set clear expectations for employee development. Continuous employee development will be crucial to the success of the performance management system. With today’s “doing more with less” philosophy, it is essential for today’s organizations to seek alternative ways to develop employee talent through ongoing skills mastery, special projects and assignments, team leadership opportunities, and formal education and training. Recession philosophy: Train in the downturn, implement in the upturn! Are your employees ready for the upturn?

Performance management is like budgeting. It’s required in every organization and is good business practice. As time consuming and cumbersome as it may be, we still need to set employee performance expectations and manage them on a regular, not just annual basis! And, definitely not on a “never-given basis!” People expect what you inspect…

Do what you can to avoid the “911” situation when it comes to performance management and reviews. Make the right call - Incorporate the “411” approach into your “P2P” employee strategy!

Do You and Your Employees
Need a 411 “Power Surge?”
Be Ready for the Upturn!

Join Me for the Next Public Workshop!
“Back-to-Basics” Two-Hour Power Training

Learn How to Make the Right Call
The 411 of Managing Employee Performance

Date: September 17, 2009, 9:00am – 11:00am
Only $49 per person!

CLICK HERE TO REGISTER

P.S. Do you know someone who needs "Positive Energy" in their workplace? Feel free to forward this issue to friends, family and colleagues!

A Positive Workplace Means Business™.
Leadership and professional development programs designed for front-line employees, team leaders, supervisors, managers, and corporate leaders who are responsible for developing and implementing their organization's employee and customer service strategies. « Learn More »

Mary Jane (MJ) Paris brings a broad base of experience in management, leadership and employee development gained from more than 25 years in sales management, retail banking, training, recruiting, project management, event planning and community leadership.
Her common sense approach and practical experience combined with her dynamic presentation skills provide a solid foundation for understanding her client’s needs and challenges.