We’ve already explored how an established Competency Framework provides clarity on what is expected of everyone at every level. Not only does it show people how they can progress up the ladder and grow their careers, it is also the foundation on which you can hold them accountable to the behaviours and expectations that will keep them and their colleagues psychologically safe.
With this sort of clarity, performance conversations, both future focused or related to immediate coaching and correction, are much easier and far less subjective. Unless it is a formal disciplinary conversation, a good performance conversation will always include an element of development or looking forward.
Even when we are needing to coach or ‘correct’ behaviour, having a lens for future improvement and a tone of encouragement will ensure the employee is not negatively impacted in terms of their overall confidence, feelings of self-worth, value and ultimately wellness. This is incredibly important.
Effective measurement is an integral part of the management process. The balanced scorecard provides executives with a comprehensive framework that translates a company’s strategic objectives into a coherent set of performance measures.
Much more than a measurement exercise, the balanced scorecard is a management system that can motivate breakthrough improvements in such critical areas as product, process, customer and market development.
The scorecard presents managers with four different perspectives from which to choose measures. It complements traditional financial indicators with measures of performance for customers, internal process, and innovation and improvement activities.
In addition, while traditional financial measures report on what happened last period without indicating how managers can improve performance in the next, the scorecard functions as the cornerstone of a company’s current and future success.
The Harvard Business Review article case study Balanced Scorecard provides an example of how a balanced scorecard uniquely combines management and measurement in Rockwater, a global engineering and construction company. Read the case study here: Balanced Scorecard - Harvard Business Review Article Case Study.
Key Considerations in Performance Management
When working with employees on their performance, leaders should ask them to reflect on the following questions:
What is expected of me?
An employee who has clearly defined expectations set out and understands what is expected of them in the role is better able to meet or exceed those expectations.
How am I doing?
Employees should be kept updated about their performance regularly, through regular discussions with their leader, based around evidence, through reports, customer, peer and leader feedback, etc.
How should I develop?
It’s important to evaluate against the knowledge, skills and behaviours they need to undertake their tasks, which will help determine any gaps that may need to be filled to improve performance.
What’s next for me?
Goal setting and action plans will help drive the employee’s improved performance, and provides a road-map to evaluate against and agree on when to move on to the next step.
How did I do?
In addition to the regular check-ins, employees should meet once a year with their leader, to discuss their overall performance and improvement over the past 12 months, and to evaluate against the targets set at the start of the year.
This annual discussion should be a two-way discussion that allows the employee to provide input into their evaluation.
How will I be rewarded?
Whatever your organisation’s reward and recognition process for performance management, it’s important that the employee knows up-front what they are working towards, and that they understand how their performance evaluation determines any reward they will be eligible for once the performance appraisal process is complete.
Download the Performance Development Planner to prepare for an effective conversation.