Death of existing Performance Management System is imminent, HR better wake up before they are whipped to do so...Changing paradigm of Performance Management in dynamic business landscape...

“People in many organization are always attached to the obsolete - the things that should have worked but did not, the things that once were productive and no longer are.” ― Peter F. Drucker

To start with, performance management was created to manage (i.e. control) the work of an industrialized workforce to maximize output. Not much  thought was given to creativity and development of the individual. It’s no surprise that a process created to control the output of a workforce where large part of the work was standardized and repeatable do not work as a tool to develop a knowledge-based workforce. It’s time for us to change our lens from performance management to talent development. And I believe HR needs to lead the way. It has already started happening at some organizations where they are thinking different and going beyond the obvious. Adobe is one such example. While surveys and research findings confirm the problem, not many address the solution. Below are some practical ideas to help us re-build and revitalize our performance management  : - 

Start with the reality Check :- Ask yourself -  the time, energy and efforts invested in overall system oriented performance management process is yielding the desired organizational results?. Do some Analysis and see the co-relation with results and return on investment (ROI).

Shift perspectives :- Helping people at all levels in the organization build capability signals a shift in perspective from identifying weaknesses to capitalizing on strengths; reinforcing a cultural shift from judging and grading to coaching and development. Feedback and coaching support innovation and creativity much better than assessing and grading do. And, helps to shift responsibility for growth to the individual by empowering them to ask for feedback versus waiting for the scheduled time for it to be administered from above.

Develop multiple tools of evaluation :- Stop relying only on performance management activity; done once or twice a year, as the basis to drive all your talent-related actions. While you may only set individual goals and expectations once a year, how often to you touch base on those goals & expectations? Three months later? Six? Twelve months later? Not at all? If your annual “review process” is really only an annual event, you are missing a lot of opportunities to take employee engagement to the next level. Take a close look at what you are trying to do with performance management and un-bundle those activities

Focus on creating a Coaching Culture : – In performance management we encourage people to participate in a months-long process where the outcome is to give a grade. This does nothing to prepare them to effectively coach and develop each other. Get the folks some training. Start at the top with your leadership team since they need to model the behavior to ensure it flows downhill. Next, work your managers & team leaders into the mix. Start with small, easily digestible & implementable steps, and work your way into a more fully formed coaching system.

Development of Middle Management is a key : – We should create a culture were focus is on providing relevant feedback as and when required. Most of the managers I see have not been trained to be a manager of people. People are promoted specifically in IT / ITES industry for their individual excellence. However, when they get promoted to next level and become in-charge for the career of 6-7 people as Team Leaders, we do not train them enough on people management skills.

Changing dynamics of Feedback :- Change the notion that feedback only goes top-down. Encourage people to get and give feedback in any direction. Emphasize the idea of agility and feedback when needed. There are lots of good tools out there that can enable this. An informal but regular feedback process conducted by well-trained managers can go a long ways towards helping your employees and organization meet their goals.

Create a culture of Succession planning for key roles : – Make talent reviews and succession planning an ongoing dialogue with leaders. Follow-up on agreed actions and share insights with those being discussed, encouraging people to take an active role in the planning and execution of their development activities.