by Pete Tosh
Founder, The Focus Group

Performance Management Concerns

Performance Graph ArtWhen asked about their performance management programs, many managers and frontline employees express common concerns. Their current programs aren’t working. They aren’t relevant to organizational goals. They don’t provide incentives that engage employees and motivate them toward business growth strategies.

Identifying the disconnect isn’t difficult. Successful performance management programs are built on two cornerstones – Organizational Success Factors and Employee Competencies. Aligning the relationship between business objectives and strategies and motivators for enhanced performance starts with clear definition of both elements.

Organizational Success Factors

Organizational Success factors are those goals, proficiencies, and strategies that drive organizations to excel. They determine their ability to differentiate, compete, and profit in their organizational environment. Success factors are company-specific. They enable the business to:

  • translate strategy into practical initiatives.
  • communicate business objectives and strategies to teams and employees.
  • direct employee behavior toward the organization’s priorities.

Employee Competencies

Priority Employee Competencies are the skills, knowledge, abilities, and behaviors that employees use to implement the Organizational Success Factors. Without adequate Employee Competencies, organizations will be unable to put strategies into action or achieve organizational goals for success.

An Effective Performance Management Process

Creating specific definitions for each of the two areas requires organizational leaders to prioritize the elements of their business strategy and analyze the competencies that make the most important contributions to success. They must also determine ways to measure the effects of performance management efforts.

Performance Management ArtOnce consensus is reached, leaders must commit to the steps necessary to implement the new performance management program. They’ll need to develop the specific connections between performance appraisal feedback and monetary reward, training, and career development. Other decisions include the best means of communicating the program to the organization, how to solicit feedback, and the provision of training that managers will require to carry out their roles.

At the optimum, initiatives stemming from an effectively aligned performance management program will penetrate into other related business processes – interviewing and selection, new employee orientation, coaching, counseling, and the quality of communications within the organization.

It’s easy to see that your organization can achieve significant benefits from a performance management program that connects Employee Competencies and Organizational Success Factors. If you’d like to learn more about developing an effective program, you’ll want to attend the next Georgia Employers’ Association workshop: Benefiting from Performance Management: Performance Appraisals, Coaching and Counseling. Scheduled for February 22, the half-day session is part of GEA’s 2017 Leadership Workshop Series. Click the link to learn more about the series and the upcoming workshop.