Managing Performance Effectively

Performance management has always been a key part of a manager’s responsibility. However, in the current tough economic climate I believe it is now even more important to manage the performance and development of staff effectively to counter the effects of tough trading conditions. In my view the overall purpose of performance management is to maximise the contribution of individuals and teams to enable a business or organisation to achieve its goals and objectives. I also believe that performance management is applicable to all levels within an organisation from front line operatives to the board. As a manager I have always tried to use a number of principles when managing the performance of my staff. Set clear expectations. I believe that it is vital that everyone in the business knows what’s expected of them if they are to maximise their own and the business’s performance. As a manager I set expectations in the following two ways:  By describing what needs to be achieved through the setting of personal targets (that are ultimately linked to the business strategy).  By describing how managers and staff are expected to behave and deliver their personal targets. Manage performance continually. I do not let my managers and staff ‘just get on with it’ in the hope that they will deliver the expectations that I have set. Instead I continually review their performance by meeting with them on a regular basis (e.g. every 6 weeks) to discuss progress against targets and resolve any issues that might have arisen in the previous period. The outcomes of the meeting are usually a set of actions that need to be taken by both the individual and myself. Review performance annually. I conduct a formal review of performance once per year (using set procedures and documentation). I review performance both in terms of What has been achieved as well as How it has been achieved.  What has been achieved is a review of the job holder’s tasks and responsibilities which I measure by achievement/delivery of the targets set.  How the targets have been delivered. I determine this by reviewing an individual’s behaviour against the business’ competence standards and values. Generally, I have already collated the majority of the evidence for the annual review from the regular meetings I have had with staff. Performance management outcomes. Clearly for performance management to be effective something needs to happen as a result of it. The outcomes from the process typically range from recognition of efforts and achievements, and sanctioning of bonuses and other incentives for those who have delivered on the expectations I set them. For those that do not, there may be consequential action. In addition, I agree learning actions and plans as well as new targets for the coming year. Ultimately, the measure of whether or not performance management is effective is if all managers, teams and ultimately the business achieves its goals and objectives. While performance management is never easy and can often require having difficult or tough conversations, my own experience has been that using the principles above has enabled me to deal with the majority of performance issues before they become a serious problem for either me or the business. Good performance management can provide essential support and guidance to inexperienced staff who if badly managed will continue to perform below their potential.