Private: Ten Tips to Successfully Implement Performance Management

Hello, so far our blog series on performance management has provided guidelines to help you incorporate a relevant system into your organization. As you know however, there are many challenges that can come up along the way. To help with any difficulties you might come across, today we are going to look at ten tips to successfully implement performance management into your company.

Leading expert on performance management, Dr. Elaine Pulakos, recommends the following for successful implementation:

1. Ensure the [performance management] system is aligned with your organization’s management practices. Ensure that the system targets similar competencies as those that managers, owners, or HR use to recruit, staff, and train. Even though the person, people, or department doing the hiring for your organization may not directly manage the organization’s performance management system, they are not mutually exclusive. Therefore, hiring managers should be consulted and involved in all aspects of the performance management processes.
2. Elicit the help and support of organizational members, aiming to get the support of top leaders and managers. Support from all parties involved will greatly increase the success of a performance management system. A large hurdle in implementing a system will be gaining support. Some staff may feel threatened by the prospect of being evaluated on their performance and that performance will be linked to pay and promotion. The notion can provoke emotional negative responses and cause some opposition and undermining of the system. The support attained from leaders and managers will help to bypass some of these issues.  Open communication with all affected parties is important; inform and consult with them throughout the process of establishing the performance management system.
3. Get the CEO to demonstrate their support for the system. While eliciting support is crucial, they must also communicate their support. The CEO and top management need to be vocal about their support for performance management. Create email messages, videos, and briefings that discuss the importance of the system and educate on the value of performance management. Use surveys to check on employees’ satisfaction with management’s role in the performance management process and use these to address any issues.
4. Automate the performance management system using a technology-based approach to maintain and update records. There are many software programs designed for performance management and the benefits are numerous: data analysis, information sharing, and greater efficiency in maintaining performance records. Performance management technology can help save time and reduce the effort needed to manage the system. Train both employees and managers on how to use the performance management system.
5. Pilot test on a group of employees and managers to identify any issues before applying it to the whole organization. A pilot test will help iron out any small problems and you can assess the greater impact upon employees. It will be especially helpful for organizations without prior performance management training or experience. Evaluate and improve the process.
6. Decide on the primary purpose of the performance management system: will it be for decision-making or development? Choose one and then create a system that will support this purpose. Having a defined purpose will help the system achieve the best possible results. A system that tries to incorporate both purposes will ultimately be letting itself down, since both cannot be given due focus. If your system’s primary purpose is both, then try to treat each purpose separately and conduct separate discussions for decision-making and development.
7. Managers play a key role in performance management and they need to embrace this role. They are responsible for ensuring that employees have the training and skills they need. They are also responsible for assessing performance. They must demonstrate courage by providing frequent and accurate feedback to employees. In reality, there is often a disconnect between managers and performance management. Most managers understand what they need to be doing, yet they don’t actually go through with doing it. Encourage managers to embrace their roles by highlighting the importance of performance management to both the organization and the employees.
8. Hire managers with competencies that equip them to successfully implement performance management. As managers play such a key role, those with the right competencies and experiences are ideal and they can enhance performance management. Communication skills, sound judgment, and fairness are examples of these competencies. Managers that tend to give positive feedback and can provide rewards to high performing employees.
9. Top leaders develop performance management policies. The responsibility for designing effective performance management policies is with the very top management. They will need to define and take action upon the organization’s core values of performance. Top management will set the tone for the line managers in whom they will motivate to see the instrumental value of performance management for the organization. Top leaders and managers need to be held accountable for fully implementing the performance management system.
10. Finally, stick to your performance management system like glue. If your commitment to the system diminishes, so will the effectiveness of your system. Keep in check that you will faithfully and fully support the system right through the entire process. You don’t want all the hard work you put into implementing a performance management system to go to disuse and waste. Keep your sight on the benefits that this will bring: increased performance, increased employee motivation, and achieving the organization’s goals and visions for the future.

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