Every organisation has an approach to performance management, even if it hasn’t been recognised or communicated.
For some it is a strictly documented system that is rigorously followed, and involves Strategic and Tactical planning, Unit planning and Personal goals and targets.
For others, it is a chaotic mix of changing priorities, unclear direction and ambiguous discussions.
But for most, Performance Management sits somewhere in the middle. And the organisation manages to achieve most of what they wanted to, sort of, most of the time.
Performance Management is not well understood, and can often be equated to poorly managed discussions with managers, where the feedback is all one-way (manager to employee) and all negative. No wonder many staff are nervous when an organisation plans to introduce a performance management system.
Let’s explore Performance Management in this blog. In this post we can begin by looking at the benefits of Performance Management.
The benefits of Performance Management
The primary benefits of Performance Management are:
Improved individual and team Performance
Your team now understands what is required of them, their role, responsibilities and accountabilities. Each member of the team can link their work and initiatives to the team goals and targets.
Development of people
Developing your people has two key strategic benefits:
- Developing them for the next level ensues that you have a constant supply of next generation leaders and managers.
- The organisation is developing the skills that they will require over the next 3-5 years, and will be ready to meet the challenges of the market place.
Bottom line results
Each Unit, each team and each individual is focused on what needs to be achieved to meet the current strategy and internal 12 month plan.
The key bottom line results is always:
- financial targets
but other key areas that impact the financial results are:
- customer relationships
- market competitiveness
- service and product quality
- sustainability targets
- employee engagement
In our next post in this series, we will look at the aspects of Performance Management.
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