Wednesday, May 15, 2013

Time to Scrap Performance Appraisals?


In my 35 years of corporate experience, I’ve lived through nine iterations of performance management.  At best, some have accurately captured, reported and calibrated my performance.  I’ve also observed that leaders in some top-down organizations feel a need to weed out bottom performers and marginalize the efforts of the middle 80%.   At the same time, they’re not quite sure how best to reward top performers.

As the workforce and the workplace changes, progressive organizations are looking at doing away with traditional performance ratings and the performance appraisal process.  Josh Bersin, founder of Bersin by Deloitte, asserts, “Businesses thrive on agility, speed, passion and alignment.  The process of driving and measuring performance has to do the same.”  The Forbes article (link below) provokes the question, “do we really need a performance appraisal system?”

While pondering that thought, here are a few key points to consider:

·         Do you have a feedback rich organizational culture?  If not, it is high time to create one.  Incorporate feedback models into every aspect of organizational life, including performance discussions, 360 reviews (including peer-to-peer and employee to manager), and talent review.  Invite and appreciate the gift of feedback.

·         Separate performance discussions from development discussions.  Managers who listen with an open mind are more highly regarded than those who prescribe development without accurately diagnosing both performance and motivation.  Development discussions are not constructed in such a way so as to “fix” performance.  

·         Expect that performance discussions are a part of regular one-on-one conversations, and that performance discussions are a two-way street.  Have your employees provide you feedback as well; you’ll be amazed at how impactful that feedback can be.   Don’t discount group feedback; I’ve seen mentoring circles and peer feedback sessions be very beneficial!

·         Assume positive intent – and if someone isn’t performing up to standard, don’t assume you know the reason.  ASK.  You may be part of the problem.

·         Challenge pay-for-performance plans.  Few things in corporate life demotivate and demoralize workers more than being “leveled” or “calibrated” against others’ performance. 

 

For more thought-provoking questions, follow the link below to the Forbes article.

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