Performance management incorporates a set of integrated practices that enable an organization to meet defined goals and/or objectives, whether those goals are to generate revenue, increase customer satisfaction or create a better product. And while a performance management system (the mechanism used to plan for, monitor and evaluate employee contributions) will differ from organization to organization, when well constructed, it can be an informative, powerful and empowering mechanism through which to channel, enhance and recognize employee talent.

Having said this, your management team (those who supervise/manage staff) is crucial to the success of any performance management effort. In a 2012 Outlook Survey conducted by The Conference Board of Canada, of 381 survey respondents, “less than half are confident their systems are effective. They struggle with subjectivity, consistency, and fairness.”

And so as an HR professional, your primary concern should not simply be centered on the design, implementation and management of your performance management system but rather at rallying, nurturing and sustaining management commitment to organizational success, by way of effective performance management practices.

To date, I haven’t yet come across an organization that intentionally set out to fail. However, I have come across organizations that have needed some convincing that performance management matters. A commitment to performance management takes time, practice and patience. All of which might be hard to come by, depending on the time of year and the reality of workload.

Here are three key considerations to help you create management ownership to your performance management efforts.

Why it matters

Whether your organization is in the business of creating a cure, enhancing the lives of the marginalized, or housing the homeless, your organization is accountable to a broad range of stakeholders from donors, to supporters, to those you serve, to community and possibly corporate partners. Likely, your organization has made a public commitment to your stakeholders, by way of your vision and mission. Quite simply, the success of your organization is directly related to the performance of your employees as they work towards achieving the vision and mission. Your management team members create the strategies, design the plans and manage the people that performs the work to meet the vision and mission.

And, it ranks among the top 3 business priorities according to McLean & Company!

 

What you measure matters

When an organization sets its goals/objectives, it typically identifies measures of success (key performance indicators) — so that all concerned will recognize when the objective has been achieved. Objectives may be quantitative: a defined revenue target, increased donors, reduced incidents of a disease. Alternatively, objectives may be qualitative: smoother internal hand-offs, accessibility of information and last but certainly not least, competencies (i.e. planning and organizing, management).

Whatever your measures of success, there needs to be agreement, up-front, to those indicators which are of value to your organization, along with the right mechanisms with which to monitor and measure the outcomes.

How you measure matters

As mentioned earlier, a performance management system will differ from organization to organization—and this will largely be based on what is being measured. However, there are popular types of performance measurement methods that you can explore to determine an appropriate option or combination thereof, for your organization:

• Trait Method – measures the extent to which an employee demonstrates or possesses a particular characteristic. For example, Reliability – in an environment where punctuality is critical to the organization’s success.
• Behavioural Method – designed to specifically describe those actions an employee is required to exhibit. For example, Communications – Demonstrates the ability to exchange information in all forms.
• Management By Objectives – based on agreed upon objectives (qualitative or quantitative) jointly determined by the employee and the manager.
• Balanced Scorecard – designed to explicitly incorporate the organization’s strategic framework into operational activities, typically focused on financials, internal business processes, continuous learning/improvement and customers/supporters.
• 360 Degree – designed to solicit feedback from multiple sources internal and/or external to the organization.

Once you’re able to articulately convey the why, what and how of performance, be ready to articulate it again, and again, and again. You need to do this until that time when performance matters are embedded into your culture — clearly recognized as a conduit to organizational success.

Regardless of how your organization elects to measure employee performance, management training is a must, particularly for new managers! And most importantly, proactively instill confidence in the system and confidence within your performance management practices so that pre-emptive measures can be taken to address subjectivity, consistency and fairness.

The next part in this series will focus on performance management planning. Does performance matter in your organization?

To submit a question for a future column please leave a comment below or contact editor@charityvillage.com. No identifying information will appear in this column. For paid professional advice about an urgent or complex situation, contact Veronica directly.

V. Utton & Associates offers boutique-style human resource management services to small and mid-sized organizations with particular expertise in the non-profit sector. For a fresh “VU” on people practices contact us at info@vuttonassociates.ca.

Disclaimer: Advice and recommendations are based on limited information provided and should be used as a guideline only. Neither the author nor CharityVillage.com make any warranty, express or implied, or assume any legal liability for accuracy, completeness, or usefulness of any information provided in whole or in part within this article.

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