Beyond Performance Management

Here’s a fascinating paradox. We’ve all heard that the annual performance review isn’t effective and that managers should instead provide regular feedback on performance. And yet, the annual performance review remains the dominant process used by organisations. There are two reasons for this. First, the notion of work remains stuck in the industrial age where a person’s ‘performance’ (read: productivity) could be measured by the speed at which they completed a defined and discrete set of tasks. In today’s post knowledge economy it is difficult to precisely measure performance when the inputs into work are vague and complex. Think about the emotional labour undertaken by a nurse where his or her effectiveness is as much about how they do it as what they do.

Second, performance management remains dominant within organisations because the Executive Leadership Team needs data with which to make decisions. Executives are focussed, among other things, on increasing productivity and minimising risk. Therefore metrics on performance are useful data to have.

Or are they?

Lets challenge this sacred cow for a moment. What would happen if we focussed less on the outputs of work and instead focussed on the environment to foster great work? In such an environment, managers would know the deep motivations of each of their team members and would help them develop and grow in the direction they wanted to. Senior leaders would reinforce the reason why the organisation exists and explain this purpose consistently and constantly often through great stories. Everyone would know why they come to work and how they will achieve the purpose.

“Performance Management” in its traditional sense wouldn’t occur.  Don’t get me wrong though – breaches of the behavioural expectations would be treated swiftly and strongly else a culture of mediocrity would arise.

Managers wouldn’t have the annual performance review, but instead have ‘enrichment’ conversations and jointly set agreed activities, such as specific development goals, to ensure a connection between what is done on a weekly and monthly basis nurtures their innate drive and motivation.

Great performance comes from believing in a person, not measuring them.