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.
The report addresses ways organizations can make changes that work within an existing performance structure, making incremental adjustments, as opposed to radically altering or discontinuing systems to engage employees, strengthen culture, and achieve success. It also features insights from companies on the cutting-edge of performance management, including:
- Emeritus Senior Living
The complete study is available exclusively to i4cp members. Download your copy now.
A summary version for non-members is available at go.i4cp.com/performanceculture2014