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Why Development Driven Performance Management Matters

August 23, 2011, Bhaskar Deka - For many organizations, performance management fails to deliver the expected business results because it only consists of annual goal-setting and performance appraisal processes and do not tie performance review process to proper development and career planning for the employees. Organizations that identify employee’s development needs and support them on an ongoing basis as part of the everyday management process realize better business results.

I'm looking forward to Monday, which marks the start of The 2011 US Open Tennis Tournament. It will be particularly exciting to see defending champion, Rafael "Rafa" Nadal, try to unseat top newcomer, Novak Djokovic, to regain the place of world champion.

Arguably one of the greatest players in the history of the game, Nadal can thank much of his success to his Uncle Tony, who has coached him in the sport since he was 4 years old. It was Tony who "persuaded the natural-born righty to play left-handed, giving him greater control and power on his two-fisted backhand." Similar stories of mentors and role models can be seen throughout professional sports. Whether it's Tony Nadal persuading his nephew to play left handed or Maria Sharapova's first coach, Yuri Yutkin, recognizing Maria's amazing hand-eye coordination, coaches play a vital role in spotting ability and shaping the careers of world-class athletes.

Making Development Driven Performance a Part of Your Business

Just as these professional athletes are coached in their jobs, many employees in the corporate world  are successfully mentored and coached on their careers. Yet, how many organizations, really make "coaching and development" a vital part of performance management process for their employees? For many organizations, performance management fails to deliver the expected business results because it only consists of annual goal-setting and performance appraisal processes and do not tie performance review process to proper development and career planning for the employees.

[ Product Overview: Saba Talent Management Software ]

On the other hand, organizations that use a "Development Driven Performance Management Approach" identify employee’s development needs and support them on an ongoing basis as part of the everyday management process. "Coaching and Development" is at the heart of  the "Development Driven Performance Management Approach." In fact, research from Bersin & Associates shows that with "Development Driven Performance Management," organizations can attain 150% to 200% better productivity and business results compared to using a standard performance appraisals and pay for performance approach involving competitive assessment. You can see the report here.
So, how do you implement a Development Driven Performance system in your organization?

You need to be very thoughtful about the steps you need to take to effectively transition your organization to using a "Development Driven Performance Process". For example, it is extremely important for you to establish the key links between goals, performance, and Learning to implement an effective Development Driven Performance Management system.


In an upcoming webinar, Chris Tratar, Senior Director, Product Marketing at Saba and I will be talking about how you can help your organization successfully transition to a Development Driven Performance Management process. Join us for the webinar entitled, "5 Steps to Development Driven Performance Management" on August 30th, 1pm EST. For more information, please register above.

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