According to the Watson Wyatt research, organizations often fall down on performance management by overlooking four key aspects:
- The capability of line managers to manage poor performance and have "difficult" conversations, which can be addressed through coaching and training.
- Employees' capability to set objectives, and provide and receive feedback, which can also be addressed through training.
- Ongoing communication to ensure undue emphasis is not inappropriately placed on objective setting and end-of-year reviews to ensure that performance management is seen as the "way we do things".
- Ensuring that performance management is placed in the context of overall business performance to provide employees with a "line of sight" and help them to understand how achieving their objectives help to deliver organizational success.