Six Ideas to Improve Your Performance Management Practices
Position Employees for Growth
Let’s talk about performance management for a few minutes. Why? Because I know that it’s everyone’s favorite topic, especially around this time of year. Typically, managers can’t wait to complete the annual performance review cycle in the midst of everything else that needs to be done wrapping up one year and starting the next.
Performance management is about more than performance reviews. Really it’s about focusing attention and energy in the right direction. Think about it for a minute. If you were to encourage everyone to energetically do whatever they please, the result would be chaos, right? But a solid performance management process is going to channel their efforts.
I like power washing. I know that’s weird but there is something satisfying about being able to remove the dirt and grime from my back patio. I could choose to simply use a hose or a bucket of water, but the power washing tool (the system) focuses the water and accomplishes work. A good performance management practice is similar in that it provides the system or structure that affects change (hopefully with a bit less pressure).
Here are a few of the pieces to an effective performance management practice:
- SMART objectives – The acronym SMART refers to specific, measurable, attainable, results-oriented and time sensitive. Objectives are often tied to general performance metrics or strategic goals of the organization. They should be discussed and agreed upon with the employee at the beginning of the performance period. Ideally, at least one objective for the period will be development-related.
- Coaching – The value of a coach lies in their ability to develop and execute a strategy through others. It’s a matter of teaching, encouraging and driving activity in a manner that drives results. On-going coaching throughout the performance period is needed to ensure continued focus. It also enables you to learn about and remove obstacles to performance earlier in the process.
- Documentation – Few employees enjoy creating documentation. But it’s critically important. You may have heard the phrase, “If it’s not documented, it didn’t happen.” Documentation can be in the form of a performance review, a recognition statement, an incentive letter, a disciplinary action document or an investigative file. It’s the proof of action. And, when proof is needed to support an employment action or better understand an employee’s work history, it’s extremely helpful to have it in place.
- Corrective Action – When it’s warranted, a clear process on how to correct performance or behavior issues is a benefit. And it’s necessary in order to keep the organization running smoothly. An incremental approach to improving employee performance allows you to correct issues before they become more “career altering” or life changing. Generally these start with a simple discussion and action plan on how to turn things around. And if the improvement is not made, you would then progress to a documented formal counseling notice, written warning, perhaps a final written warning and then termination. Some of these steps may be skipped when a more serious issue presents itself – something that’s especially egregious.
- Reward and Recognition Systems – Reward and recognition systems are designed to tap into an employee’s extrinsic motivation. To capture their attention and give them a desire to accomplish a high level of performance. Examples may include compensation increases, incentives, public recognition, additional time off and other positive influencers. Ideally, there is a solid balance between the use of corrective action and reward and recognition systems.
- Consistency – As I’ve mentioned in several other articles, your consistency in the manner in which you address successes and failures is extremely important. Assuming that you follow your performance management plans, it clearly communicates to employees and outside agencies that people are treated fairly, with dignity and respect when they are part of your organization. Demonstrate those three elements and your risk will be minimized.
Performance Management systems that are run effectively serve as important motivational tools to ensure that your employees remain engaged and focused and your business continues to move forward.
Brian Wallace • March 8, 2022
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Improve Your Decision-Making Processes
Are you ready for the next leadership transition in your organization? In today's fast-paced business environment, ensuring you have a strong succession plan in place is more important than ever. Organizations that neglect this aspect may face skills gaps and leadership shortages that can significantly impact their competitive edge. But how can you effectively integrate performance management into your succession planning strategy to ensure a seamless transition? Let's explore how these two processes can work together to empower your organization. Identifying High-Potential Employees A fundamental part of effective succession planning is the ability to identify high potential. Performance management processes open lines of communication and observation that reveal it. Clear performance measurements, delivered through fair and regular appraisals, enable managers to identify people who have the skills, experience, and qualities required to succeed as leaders. For example, an organization will conduct performance reviews to evaluate its employees based on their ability to solve problems, work in teams, and make decisions. The sooner these high-potential candidates are identified, the better it is for organizations as they work to build a strong pipeline of future leaders. It’s a practice that enables organizations to avoid significant disruptions when key positions become vacant because competent candidates are immediately available to fill the roles. Developing Future Leaders The development of identified high-potential employees is truly crucial. Performance management systems are useful for this purpose, enabling the organization to tailor training and developmental programs to their specific competency gaps. For example, a strong performer with little experience or exposure to leadership can work under a development plan that includes leadership workshops or mentoring programs. Organizations that invest in these individuals not only enrich their talent pool but they also foster employee loyalty and retention. Employees who perceive they are supported and valued are more likely to fully engage and remain with the organization. Setting Clear Goals and Expectations Effective goal setting helps ensure the proper alignment between individual and organizational performance. Performance management clarifies roles and prioritizes responsibilities to ensure that individual, unit, and organizational goals are achieved. Constant review and updating of these goals keep employees focused on their development while keeping an eye on organizational success. Employees often seek more than just a job—they want to be part of something bigger, a vision or initiative they can rally behind. Performance management processes play a critical role in preparing future leaders to recognize, embrace, and actively engage with that greater purpose. Understanding how their role fits into the bigger picture and contributes to the organization’s success is essential, especially for those transitioning into leadership. It provides them with a clear roadmap for personal development and growth. Fostering a Culture of Feedback and Coaching Performance management plays a crucial role in shaping a culture that nurtures and prepares future leaders for succession. By setting clear expectations, providing ongoing feedback, and aligning individual goals with organizational objectives, performance management helps employees understand how their contributions fit into the bigger picture. This creates a sense of purpose and engagement, fostering an environment where individuals are motivated to grow and develop. The process encourages continuous learning, guiding employees to take ownership of their development and positioning them for leadership opportunities. Through structured conversations and development opportunities, employees gain not only technical competence but also the leadership behaviors and cultural awareness necessary for future roles. Over time, this process builds a talent pipeline of individuals who are highly aligned with the organization’s values and capable of driving the company’s vision forward. Conclusion Integrating performance management with succession planning is essential for organizations that want to build sustainable leadership pipelines and maintain long-term success. By identifying high-potential employees early, developing their skills, and aligning individual goals with the company’s objectives, performance management ensures that future leaders are prepared to step into critical roles when the need arises. This proactive approach not only minimizes the disruptions caused by leadership transitions but also strengthens the organization’s ability to stay competitive in a rapidly evolving business environment. Moreover, performance management fosters a culture of growth and continuous learning, empowering employees to develop both personally and professionally. When employees understand how their roles contribute to the organization’s success and feel supported through coaching and feedback, they are more engaged and motivated to grow within the company. This alignment between individual development and organizational goals creates a foundation for effective succession planning—ensuring that each leadership transition builds on a legacy of competence, purpose, and cultural alignment. So, are you ready to take your succession planning to the next level? If so, consider contacting HR Strategies Now . We’ll help you create a customized approach that ensures your organization is prepared for future leadership changes. HR Strategies Now – HR consulting in Cypress, Houston, The Woodlands, and beyond.
