It’s a sad fact, but performance review processes and the people who implement them have a fair bit to answer for. Ouch! It hurts to hear it, but it is simply the truth.
For starters, most of them probably cause more harm to the employee’s relationship with the organisation, boss and colleagues than if they simply didn't have a process at all.
But this post is not a call to do away with employee performance systems... it is simply a very loud call for us to do them better. The critical conversation that occurs between an employee and their manager when discussing performance is arguably the most defining exchange when trying to create a common goal for high performance within a workplace. They should stay, and they should be at the very forefront of our efforts to resource humans at work.
So to get the best out of our employee performance systems, we should view the most common mistakes made in the process, starting with the biggest mistake of all:
Mistake Number 1. It is focused on review rather than preview
The single biggest mistake performance reviews make is right there in the title! Focusing on past performance is not reliable indicator of future performance to start with, but even more concerning is that a review focus is an even less reliable indicator of potential; possibly our most important trait for forward-thinking workplaces.
I could give you the quaint cliches like the size of a rear vision mirror versus the front windscreen blah blah, but it just makes sense. You can’t change what has happened, but you can change what is going to happen! And therein lies the solution to this biggest of problems in under-performing employee performance systems.
Consider the following table to see the basic frames of a review process versus a preview process;
Review | Preview |
Reactive | Proactive |
Driven by past | Focused on future |
Examination | Cooperation |
Goal assessment | Goal creation |
System focused | Performance focused |
Recognises what has been done | Recognises what can be done |
Critique | Conversation |
Whilst many organisations have in place an employee performance system that has elements of review and preview within it (as they should), the focus is most definitely on what has happened rather than on what is to come.
So if your employee performance system is not performing, start by pulling it to pieces...and the easiest place is to examine is if it is a forward-thinking process, or is it like too many, focusing on review.
Mistake Number 2. Managers lack confidence and skills in the process
Picture this; a highly talented team member gets so good at their job they are promoted out of it...and into a skill set they have no real idea about. Sounds crazy in theory but happens in practice every single day. People who are experts in their job don’t automatically make good managers/leaders of people.
The human skills element of people management takes time and training to learn. Faced with the critical conversation that might just define the relationship between a supervisor and an employee, they come up short... but what did we expect?
By not equipping the manager with the right skills, employee performance systems suffer a mortal blow; the manager then usually lacks confidence in the system at best, and publicly castigates it at worst. How are employees supposed to enjoy or respect the process if their boss doesn’t?
Mistake Number 3. The top tier don't walk the talk
Executive leaders within organisations should operate within the same employee performance system as any other person, full stop. It is simply jaw-dropping how many top-level leaders don't walk their own talk.
I once had a rugby union coach I thought was a fantastic mentor, and a wonderful coach. What set him apart from other coaches was he got in and ran amongst us for the fitness sessions. His message was not said, but certainly declared: I do not expect you to do anything I myself would not do.
Executive who want to see employee performance systems work should get in and run with the team.
Mistake Number 4. Carrot and sticks belong on farms
A staggering number of employee performance systems are still aligned and anchored to monetary bonuses. And yet we still pursue the concepts of engagement and alignment for staff.
Let’s rewind; we impose a extrinsic motivation practice (people driven by an external reward) but hope for intrinsic (drive from within) motivation to occur.
In a factory or metric based workplace, extrinsic motivation works. Job satisfaction isn't really as big an issue as operational excellence. But in the modern workplace where innovation, creativity and lateral thinking needs to be a daily job description, we need people lit up from the inside, not driven by cash.
Mistake Number 5. Performance systems aren’t assessed on their own performance.
What is the point and purpose of your current system? Do you even know what it is trying to achieve other than maybe tick a box for ‘best practice’ or meet legislative requirements? The sad fact is that a vast majority of performance review systems aren’t performing.
Set some measures and goals for your system. Perhaps they could be;
- Completion rates
- Feedback responses
- Overall increases in productivity
- Eagerness to undertake meetings
- Thought leadership
Simply putting in a system to measure performance of the staff is not the end of the exercise. We need to validate and ensure the system itself is meeting the need for which you have employed it to take care of. The return on investment should always be a positive one.
Mistake Number 6. Performance reviews replace real conversation
Too often managers tend to ‘save’ critical conversations for the 6 monthly meeting that characterises the employee performance system in place. This is fraught with danger on a number of levels.
Firstly, immediacy is always the best strategy for critique to be used to best effect. Secondly, for managers who tend to avoid conflict it can become an easy ‘out’ rather than deal directly with the issue. Lastly, it shuts down the true understanding between a supervisor and employee of the work dynamic; this is only ever realised by having regular, open and immediate conversations.
Employee performance systems should never substitute ongoing feedback. Ever.
Mistake Number 7. They create a beige workforce
A combination of the above mistakes often leads to an employee performance system culture of ‘let’s give everyone 3 out of 5’.
Not wanting to offend people within the team by giving someone a 5 out of 5, everyone is ‘means tested’ by the manager and we avoid outliers. The big problems with this approach; the worse get better (through no effort) and the best get worse (in spite of effort).
In the past risk management approaches tended to favour building a workplace full of 3 out of 5 workers. Sadly, far too many employee performance systems are stuck in the past, creating very average performance cultures.
Wrapping Up
So there are the 7 big reasons why performance reviews just aren’t delivering on what they promise. There are sure to be many other reasons, and would love to get your opinions and thoughts on the systems you have worked within. Which one’s worked, which one’s didn’t.
The pursuit of excellence in a system that delivers excellence in people is always a journey worth taking...
The PLUG: Dealing with the Tough Stuff Program
Thursday 31 March 2011
Having trouble delivering results from critical conversations?
'Dealing with the Tough Stuff' gives you, your management or organisation practical tools to deal with the really tough conversations within your workplace.
Many managers struggle with the process of dealing with tough conversations and in many cases actually avoid them completely. This strategy of avoidance reinforces undesired behaviours and may precipitate further problems.
One of the biggest responsibilities with a leadership position is the importance of addressing and dealing with staff issues. At times this requires you to 'step up to the plate' and ultimately deal with the tough stuff.
Visit www.toughstuffprogram.com for more information on Dealing with the Tough Stuff.
To register your interest for Dealing with the Tough Stuff on Thursday 24 March 2011 please contact Matt on 0418 577 277 or matt@pragmaticthinking.com.
THE GIFT: Performance reviews are a big fat waste of time.
Thursday 31 March 2011
Having trouble delivering results from critical conversations?
'Dealing with the Tough Stuff' gives you, your management or organisation practical tools to deal with the really tough conversations within your workplace.
Many managers struggle with the process of dealing with tough conversations and in many cases actually avoid them completely. This strategy of avoidance reinforces undesired behaviours and may precipitate further problems.
One of the biggest responsibilities with a leadership position is the importance of addressing and dealing with staff issues. At times this requires you to 'step up to the plate' and ultimately deal with the tough stuff.
Visit www.toughstuffprogram.com for more information on Dealing with the Tough Stuff.
To register your interest for Dealing with the Tough Stuff on Thursday 24 March 2011 please contact Matt on 0418 577 277 or matt@pragmaticthinking.com.
THE GIFT: Performance reviews are a big fat waste of time.
This weeks free gift is controversial. Chief Happiness Officer Alexander Kjerulf explains why performance reviews and appraisals are such a waste of time and why our workplaces would be better off without them. Let us know if you agree, or not.
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