Compensation consultant and blogger Ann Bares wrote, in her blog Compensation Force, about the Trifecta of Effective Performance Management. She points out that for performance management there must be three components:
- A well designed program that has defined objectives, appropriate metrics, and ease of use.
- Top management support that makes performance management an integral part of the organization..
- Management Execution. This means that performance management actually gets done and done correctly.
My experience with performance management throughout my career has reflected the same things. I have found that if you make a system overly complicated, such as MBO/BARS, that no one will buy into it. So you have to arrive at a system that is effective with defined measures, accountabilities and competencies. I have also experienced what happens to a system when company leadership doesn’t really care. There is no support, no accountability, no tie-in to company strategy or performance and thus, part three, managers do not do performance management. There is “no time” or they avoid unpleasant situations. Hey, it is not going to reflect on them, so why go through the effort.
I am not going to spend anytime talking about the positive effects of effective performance management, but I do encourage you to read Ann Bares’ blog and click on her links if you have a greater interest in effective performance management.