CEO Holly G. Green (and author of "More Than A Minute") offers up a post "Using Performance Management to Create a Culture of Excellence."
Holly's prescription for a good performance management process involves five key steps:
- Establish Goals. Start by linking what needs to get done to the strategic planning framework. Align the competencies, skills and knowledge of the employee to create specific action items that will guide the employee’s behavior going forward.
- Plan Development. Discuss short- and long-term development needs, including agreement on how and when development will occur, as well as prioritization of development to support more immediate business needs. Create a plan to accomplish the required and the desired learning and growth.
- Take Action. Provide ongoing and frequent direction and support while the employee applies energy and focus toward accomplishing the goals.
- Assess Performance. Evaluate the progress being made toward the goals and provide ongoing feedback to the employee on a formal and informal basis.
- Provide Reward. Acknowledge and reward employees through organizational programs, local recognition, and other approaches tailored to individual employees. This may also involve consequences and disciplinary action for poor performance.
Consider the consequences of not doing it: Lack of trust between employees and management; declining productivity and lost business due to missed deadlines and broken commitments; lower employee morale and higher turnover. These are just some of the more obvious consequences of a poorly implemented performance management system."