Despite so much talk about how ineffective and counter-productive performance management is in its current form, there's few organisations who seem to have nailed getting it right.  But why?

Organisations are tinkering around the edges of performance management (e.g. changing the forms, modifying a rating scale etc.) without really addressing the root cause of its lack of impact on performance and productivity.  But as we all know, doing the same thing over and over again will generally yield exactly the same results.  

Or, companies are abolishing their performance review process but without a clear plan on what or how they will do differently in its absence.

So what can you do now to make your performance management approach awesome?  

The word ‘agility’ is used frequently in discussions these days to describe desired characteristics of leaders, team members and organisations.  And that’s appropriate, as the environment in which organisations and their people now operate is increasingly dynamic, complex and volatile. 

Yet despite this acknowledged imperative for individual and organisational agility, so many HR processes are the antithesis of agile.

 Let’s focus on employee performance management.

Is there a more maligned piece of paperwork in the workplace than the performance management/appraisal form?

"The forms are too long and too complicated".  

"It takes too much time to complete the forms".

"The rating scale has too many/too few options". 

The list goes on and on.

As the end of the year fast approaches many organisations are abuzz with a flurry of activity as managers conduct performance reviews with each of their people. Now I acknowledge that many people dispute the value of a performance review, but as argued in a previous post, if performance management is done well by a manager across a whole cycle and if it is linked to business strategy, then a performance review should be a valuable tool for the manager, team member and organisation alike (see http://tinyurl.com/3el7nya).

In the midst of all this work a golden opportunity is often lost by organisations - the chance to turn performance review data into strategic information.

For the purposes of this discussion let's assume that an organisation's performance management process uses a combination of performance objectives and competencies against which a person's performance is assessed and that some type of overall performance rating is determined (numeric or otherwise).