How can you create a successful Performance Management program from scratch?

PMS is a key enabler in any organization to create a line of sight where people, systems, and processes are the core drivers for business performance. Recommending 10 steps way forward to craft the PMS from scratch: 1 - Senior Leadership Commitment 2 - creating enterprise strategy and balanced scorecard 3 - onboard middle management through training and coaching 4- develop functional bodies and ambassadors 5 - Departmental OKRs link with Enterprise BSC 6 - Individual OKRs cascaded from the department but shared with cross-functional teams 7 - Performance reviews and dialogues 8 - Nurture capabilities of Crucial conversations with employees 9 - Link to reward 10 - Career Growth and mobility

A successful PM program involves: 1. Clarity on the strategic goals and objectives of the organization. Define the SMART and CLEAR business objectives. 2. Cast the vision to the functional leaders and have strategic business units define performance targets for their respective functions. 3. Cascade the objectives across the organization. Set goals for individuals and teams. Communicate how the business goals feed into individual goals and how their results impact the bottom line. 4. Provide continuous monitoring, coaching & feedback for employees. 5. Evaluate performance, provide ratings and document performance scores in line with KPIs. 6. Outline wins for rewards and recognition; and gaps for interventions and improvement.

Don't think of Performance Management as a system or a process or a project. Performance Management should become a culture, everyday work and work-habits dictate Performance Management.

A successful PM framework must be aligned to the specifics of the business leadership and culture. It should be co-created to ensure ownership It must be designed in a way to ensure a clear line of sight between contribution of individuals to corporate objectives. Nonetheless, it must rest on the following anchors: - Identification of Corporate objectives - Cascading corporate objectives across departmental and individuals - Instituting a system of tracking performance and giving ongoing feedback on a daily, weekly, monthly and quarterly basis - Identify development areas of team members - Rewarding excellent performance to reinforce the drive and reprimanding undesirable performance through coaching and deterrents in an extreme situation

It's essential to have the performance management framework clearly defined as the cornerstone of the whole PM program. To start simple, a fundamental question to address is "How do we define performance?". Of course, the answer should consider the company culture and vision. Having a solid foundation will allow a better understanding of what we want the PM program to enable and achieve based on current organizational context. The framework also should encompass: - How do we differentiate a good performer from their peers? - What are the consequences of performance? e.g. what will we do with good performers? - Identify the roles and responsibilities of each party. e.g. to what extent managers would be accountable to their team growth?

Your framework must also spell out the organization's own definitions for levels of performance. Specifically, what does your organization consider to be acceptable versus exceptional, versus unacceptable levels of performance. The framework should also define the: Roles across the organisation with respect to managing performance. Mechanism for supporting employees to perform to their potential. Process for addressing challenges with employee performance in a supportive, equitable and fair way. Process for aligning performance outcomes to reward and recognition, and who will be responsible for the decisions in this regard. Process for ongoing review of the impact and effectiveness of the performance management ecosystem.

In my experience, what has made it very challenging to craft out Performance Management System (PMS) from the scratch, is the lack of clarity about work expectation, the right tactics or objectives and having meaningful conversation with the team. We often expect that the functional heads should cascade the strategic Intent down the ladder. No! . This is why most of these fail. Once organizational strategic and goals have been defined. Those who are going to run the race should be allowed to participate in the process of how this is going to be achieved. The need to assess previous performance, what led to present stage and then when this and other factors are highlighted, there should be need to meet within the department

As an HR leader, in my experience this phase should focus on encouraging open communication. PM often gets its negative reputation because the employee experience falls short. Developing a consistent, feedback loop between both leader & employee will help set an expectation of support and development around the PM process.

To my understanding, a performance management program should have a holistic approach and it should be linked to all aspects that impact an individual's association with an organization. Such a performance management system should cover: a. Work Expectations and KPIs b. Interplay between KRAs and KPIs c. Career Progression Path d. Promotion Criteria e. Compensation Structure f. Performance Linked Incentives & Variables g. Increments to Compensation h. Role-change and Team Structure A comprehensive program will cover the majority of the areas mentioned above and is usually communicated to the members of the organization at the time of their joining for better transparency.

Don't make the mistake of assuming your managers know how to conduct a performance review. Many organizations skip this critical step. Whenever I implement a new program I start with a manager training, followed by a team wide one. Templates, examples, Q&A can help employees who are new to performance reviews navigate them.

teach your managers how to conduct Performance Review, but do not expect miracles at once. First round they will do it very technically, looking more into the process than into the essence. But second time, knowing already the process, they will find what is for them in this process and start value what they can do with it. Only from the second round they will see it the their management tool

As with any organizational change, introducing a new performance management program will require a change in behaviors. It is vital to gain clarity on what these changes mean for not just employees but also managers and executives. A coherent change transition plan or approach, and continuous communication are crucial for helping all parties transition to not just the performance management program, but to adopt the new ways of managing and working as a result of the performance management program, processes and systems.

Most important thing about setting up performance management program is to set a performance based culture. No "Performance Management System" will work unless their is a culture of performance created. Yes, Organization can set up a good PMS, but it will not work unless performance based culture has been set. And while setting up a PMS, It's important to focus on Company goal, then department goal & then individual goal which will help to achieve departmental & organizational goal. So, when setting up goal the flow will be like Organizational goal > Department goal > Position / individual goal. And while summarize the achievement. the flow is like Position / individual goal > Department goal > Organizational goal.

Indeed, the journey doesn't end after implementation; it's a continuous cycle. Regularly review and improve your performance management program to stay aligned with evolving needs and expectations. Collect data, seek feedback from stakeholders, benchmark against best practices, and identify areas for enhancement. Implement changes systematically, fostering collaboration. Ensure your program remains relevant and valuable. #PerformanceManagement #ContinuousImprovement 📈🔄🤔

Performance management is a continuous improvement process of job specifications, person specifications and organisational growth path. We need to conduct some survey on the present scenario, need to understand the current process to make an outline on KRA from the respective departments heads. 1. Measurable or quantified from the data . It should be data driven rather than subjective in nature. 2. Need to be assessed quarterly to maintain a sanity of performance review and feedback mechanism for the future action plan or deliverables. 4. Another focus area should be on the evaluation of behavioural attributes or areas like the leadership qualities, team player etc.

In my experience of working with many clients on performance management it is important to assess wether the organisation is ready to implement a performance management system in ways it is expected to be and is ready to follow goals that are specifically aligned with the mission and vision of the organisation and cascades as subsidiary goals for all levels of the organisational pyramid, alignment of the basic step organisation wide is vital in success of implementation of any performance management framework. It is important to educate and train all managers regarding the essence of performance management, it is a tool to expand capacity of organisation, people and managers through feedback and development plans rather a policing tool.

First, design the framework upon which the performance management system would run upon. Identify critical stakeholders within the organisation to discuss the draft framework. Update/revise the draft if any, to accommodate any major area of concern. Present to Management for approval or update if any. Test the framework on select employees for applicability before adopting organization wide. Identify lesson learnt, revise then adopt organization wide

First get buy in from management ensuring their understanding of how it should work, since many have bad habits on it. That would then mean training and alignment of the way it will be done, choosing the best way to do it and apply consistently.