Managing Performance: is managing enough?
Do we wish to simply manage performance? Wouldn’t we rather develop it?
Performance management is the process of setting individual goals and reviewing performance. Used effectively, setting goals and having an annual performance review will certainly improve the individual’s chances of meeting expectations and feeling good about the positive feedback they get as a result. But the process is capable of so much more. Why seek to simply manage performance, when, with a few simple steps, it could be significantly developed?
Setting goals and giving feedback answers the questions, what’s expected of me? And how am I doing? But to develop performance, employees will also want to know the answer to, how do I grow? By taking the process one step further and building a development plan is planning ahead with direction – just like running a business; having a one-year business plan and a three-year strategic plan.
The process is even more effective when employees’ goals are aligned to business strategy and goals. That way, individuals can clearly see how their own performance contributes to the bigger picture and it gives them a greater sense of being part of something important.
The model below illustrates how the three-step process can be aligned to the business strategy and plan, underpinning it with core values and key competencies. Aligning goals in this way enhances performance by setting goals in the context of the business plan. It helps to give relevant feedback and work together to develop careers for the future. It fosters a collaborative culture – everyone works together to achieve the business goals, now and in the longer term.