i4cp Study: Focus Performance Management on Customer Metrics
Performance management is generally considered one of the most unpopular and contentious practices in human resources management (most people have had negative career experiences related to performance management at some point). And although the consensus has long been that performance management is a drag, it's not going anywhere--most companies continue to use it in some form or another.
Though research has consistently shown organizations should largely abandon traditional performance management approaches, i4cp's latest study outlines four strategies and practices that organizations--those that aren't ready to overhaul or give up performance management altogether--should do to make it more effective.
Of the four findings revealed in the new report, Creating a High-Performance Culture, one stands above the rest:
Performance management is about customers.
A truly effective performance management strategy is fluid in that it reflects the changing needs of the customer or broader market. Goals, behaviors, and objectives should all be in direct relation to the customer.
In fact, i4cp research shows that high-performance organizations are 3x more likely to have performance management processes that are externally focused. The good news is that shifting performance management to focus on customers is not a radical change.
As an industry leader on this topic since 1980, i4cp has watched many performance management obstacles persist while the workplace environment evolved:
- Internal metrics plague performance reviews.
- Employees often view PM as arbitrary and unfair.
- Less than half of surveyed organizations effectively utilize PM coaching.
- Clariant
- Micron
- Emeritus Senior Living
A summary version for non-members is available at go.i4cp.com/performanceculture2014.