In the two-part series of “Moving from performance measurement to enablement”, part 1 highlighted the problems we have with current performance management process. In part-2, will be discussing on how you can get organization ready to move from performance management to performance enablement. As stated in part 1, the annual ritual of performance management is dead, future belongs to performance enablement. Companies who will not leverage this change will potentially lose an opportunity to increase their revenue by up to 9% and reduce cost by up to 7%(Source:: Mckinsey).
The outcome of enabling performance are clear. Done right, it can lead to employee far more engagement at work and with their work and will be more effective as their careers progress. Now let’s look at how you can enable the performance.
Re-focus on the Core: Organization Culture
Organization culture is not about dogs at work or yoga (Ben Horowitz). Organization culture is about “how works get done when manager’s or leadership is not there”. To understand your culture, start with analyzing or doing diagnosis with your people about what kind of culture or subcultures have been created in your teams in all these years. And then put down on paper what kind of culture is required or expected. Once this is done, then only you can define and communicate expected behaviors from your people while they are doing their daily jobs. This may sound like a theory to you, but believe me, it’s a science. The only difference is, the secret of this science and how to implement it was till date was available with a handful of companies.
Enabling Business Heads and Managers to be Better Coaches
There are two aspects which can enable managers and BU head’s to be better coaches:
- The way communicate is handled
- The way conversations are handled on giving feedback
The way communicate is handled
Your business heads and managers are continuously focused on getting transactions done. They occasionally communicate with their team members about what they are feeling and what challenges they are facing. The medium of communication is right now: ‘Town Halls’ and ‘Corporate Emails’, which are not effective. Managers and business heads need to be more colloquial with their communication so that people in their team feel more connected to them. The art of chasing numbers are easy, but the art of communication is difficult. You need to enable them to think creatively to communicate well.
The way conversations are handled on giving feedback
How many times your manager give feedback to their team members. Either it’s annual during the performance management process or when deliverables/targets turn red. You have to put in a discipline throughout the company to enable these conversations to happen more frequently (at least quarterly). And remember, this entire exercise should be employee and manager centric otherwise, they will again fail at adoption end.
Implement a Dynamic Goal Setting Framework
The business world is dynamic where targets are changing continuously. But the goals to be achieved remain static throughout the year. And they largely don’t get connected to the day to day work of the employee. An ideal goal setting framework gets connected with the daily, weekly, monthly & quarterly deliverables. It should be simple enough to change and track. It should have the ability to define the performance metrics for every role in the company. OKR is one such goal setting framework which acts more like a management tool.
Enable More Transparency
Transparency can be enhanced at two level: – team level and company level.
Transparency at team level
There are 3 types of team members. One who think he is a Hercules, one who know he is Hercules and the one who needs to know whether he can become Hercules or not. Within the team, if you can show this data (or gamify it) and enable calling a “SPADE a SPADE”, it will not only help you in achieve excellence in execution, your real heroes might be able to help those who need help. What is the different between a non-performer employee of corporate and start-up? In start-up, the shelf life of non-performers is maximum 2 month, in the corporate its 12 months or more. By enhancing transparency, you will be able to identify non-performers in lesser time and can start working with them faster.
Transparency at organization level
An employee always keeps guessing how my work is affecting overall organization progress. And few of them want an exposure to more opportunities availability to enhance their career growth. A simple way to achieve this is by implementing team goals and making all goals transparent at the company level. Employees who want to grow will be able to figure out their path for growth. You just need to show them path.
To conclude, as an HR leader, being an early adopter of initiating the journey of performance enablement, you will be stand to gain significant advantages and help you to contribute towards business growth in a tangle manner. Newly empowered employees of the digital age are constantly looking for the value proposition from their employers. Companies, new and old alike, and their HR leaders cannot afford to sit on the sidelines.
- Focus on how you can determine your sub-culture(s) and fix them.
- Enable your managers to be better coaches with continues feedback.
- Implement a more dynamic goal setting framework with goals making sense to employees.
- Enable transparency in teams with data to identify non-performers by implementing shared goals.