Performance Matters … So Do Behaviors

Many organizations put performance management on the shelf during the Covid pandemic. With a sudden and drastic change in work rules, workplace shutdowns, and work from home the rule of the day, it seemed to make sense. Here we are years later, and so many businesses have yet to return to the needed but overlooked practice of providing employees with meaningful, constructive feedback on their performance.

In one study, a startling number of both managers and employees rated their company’s performance review processes weak and ineffectual. Many viewed it as a perfunctory “have to do this” exercise lacking in any real benefit. No wonder there seems to be little enthusiasm for reinstating a process seen as sorely lacking by all involved. What’s going on here?

According to a recent McKinsey study, the overwhelming majority of team members cite the need for meaningful feedback on both their performance and their behavior (the latter in terms of how and to what extent they are in alignment with the organization’s culture). What single factor contributes to a robust, effective performance management/review process? Having a well-trained manager who understands, supports and can fully explain the organization's mission, vision, values and objectives in a way that makes their individual role clear and integral to the success of the enterprise.

These same employees also highly value a manager who can help them set meaningful goals and can help them understand their unique strengths while addressing shortcomings which may impede their growth and development. Sadly, few cite examples where managers have these needed skills.

During a senior leadership strategy session with a long-time client, the subject of performance management came up. The general consensus was that what they had before was insufficient and therefore, the process was tabled “for now.” One executive was adamant that it should remain that way. Seems this individual speaks with department team members on a regular basis and so “they know where they stand.”

It is very much an open question as to whether it’s better to have a routine, “better than nothing” process or none at all. Clearly, the primary objective should be to make performance management, robust feedback and employee development process a core competency of the organization. This requires the same dedication (starting as with most any initiative, with the enthusiastic and insistent support of the CEO and the senior leadership team) as any other area of the enterprise.

Step one is the right process, one that is simple to understand yet has the depth and complexity to address feedback requirements in a comprehensive way. The next step is to fully train managers so they can approach the process with clarity and confidence.

For more information on ways to get your organization’s performance management process on track, contact me at joe@ajstrategy.com.