Performance management is often viewed as an isolated activity with a finite start and stop date when the truth is, managing performance is an ongoing activity.
There's good reason for this too. According to Brandon Hall Group's 2014 Performance Management Study:
improve revenue, retention, and customer satisfaction.
And yet, according to that same study, 70% of organizations
stated that their performance management programs are average or below average.
So what can organizations do to change their approach?
Let's start with a discussion of the challenges with the traditional performance review process:
- it's not tied to business outcomes or overall organizational success
- it does little to build a strong manager-employee relationship
Companies need to shift their approach by creating a culture where regular performance feedback discussions are the norm.
By creating a performance management culture and aligning performance with business results.
Help employees be less fearful of the performance management process
One of the main benefits of implementing an ongoing performance management strategy in your organization is that employees no longer fear the process. When employees receive ongoing feedback about their performance it shifts the focus from what isn't working to what does and will work.
It's all about empowering the employee to take action.
Craneware, a leading provider of automated revenue cycle management solutions that improve financial performance for healthcare organizations, is a great example of an organization that has been successful in linking performance with manager strength and engagement.
Sharon Cuming, Executive Vice President HR for Craneware explains:
"The fundamental objective is to gain greater alignment between our employees and our business objectives. The key means of achieving this was to put in place a robust and intuitive performance management process that engaged our employees in the process. We also wanted to communicate Craneware's business objectives and the role everyone plays in achieving them."
The outcome for Craneware? Greater clarity on expectations within the business and improved engagement with employees.
Make performance management an ongoing, collaborative strategic priority
This sounds so easy, doesn't it? What the Brandon Hall Group research reveals is that companies that are able to create a culture of ongoing performance have invested in solution providers that can support this more collaborative, ongoing approach.
I invite you to download the Brandon Hall Group report to learn more about the statistics from the study, as well as the key performance management strategies and case studies of companies that have shifted to ongoing performance management.