The 2006 Performance Management Survey

ST PETERSBURG, FL (November 30, 2006) – Any organization still seeking the one silver bullet that will revitalize its performance management (PM) system should forget about it, suggests a recent survey conducted by the Institute for Corporate Productivity (i4cp, formerly the Human Resource Institute) in conjunction with

“That bullet doesn’t exist,” says Mark Vickers, Senior Analyst with i4cp. “That is, there is no single PM practice that can transform an ineffective system into a good one. Performance management systems are just that – systems. They require the coordination of multiple key practices. The more of these practices that are in place, the more likely a performance management system is to be seen as effective.”

The 2006 Performance Management Survey was distributed to members of HRI and, and results are based on data collected from 1,031 respondents during the summer of 2006. The survey indicates that there’s plenty of room for improvement in the performance management systems of many companies. When respondents were asked whether their PM process is seen as contributing to individual performance, only eight percent said that their process contributes in a significant way. Another 45% said that their PM process contributes but that more improvements are required, while nearly half (47%) are not sure if their PM process makes any contribution at all.

“Performance management tends to be a work in progress,” said Kevin Oakes, i4cp’s CEO. “PM technology is increasing in popularity, but without a solid process already in place it's not going to make a significant difference. The good news is that the data shows that many companies today are getting more serious about implementing tighter performance management processes.”

The survey results clearly reveal that most companies are facing some serious challenges with regard to their PM systems. On a positive note, companies seem to know which parts of their systems need fixing. An analysis of the survey that looked at the correlations between performance management processes and the overall perceived effectiveness of their systems produced a list of nine key practices. A PM system is more likely to be seen as effective when it includes the following:

1. Plans for helping employees develop in the work period after the appraisal

2. Ongoing goal review and feedback from managers

3. Training for managers on how to conduct a performance appraisal meeting

4. Metrics of the quality of performance appraisals

5. Ways of addressing and resolving poor performance

6. Appraisal information that isn’t limited to the judgment of supervisors

7. A PM system that is consistent across the whole organization

8. Some form of multi-rater feedback

9. Employees can expect feedback on their performance more often than once a year

The full report is available exclusively for members of i4cp, inc. and includes data on organizations’ future PM technology plans, the effectiveness of PM technology and the link between PM systems and compensation. For information on becoming a member, go to

About i4cp, inc.
The Institute for Corporate Productivity (i4cp, inc.) improves corporate productivity through a combination of research, community, tools and technology focused on the management of human capital. With more than 100 leading organizations as members, including many of the best-known companies in the world, i4cp draws upon one of the industry’s largest and most experienced research teams and Executives in Residence to produce more than 10,000 pages annually of rapid, reliable and respected research and analysis surrounding all facets of the management of people in organizations. Additionally, i4cp identifies and analyzes the upcoming major issues and future trends that are expected to influence workforce productivity and provides member clients with tools and technology to execute leading-edge strategies and “next” practices on these issues and trends. i4cp is a for-profit company with offices in St. Petersburg, FL.

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