"In business, words are words; explanations are explanations, promises are promises, but only performance is reality."
- Harold S. Geneen
Former CEO of ITT and considered the "father" of the modern multinational conglomerate.
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Welcome
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Resist the urge to say you will "wordsmith" your list of New Year's resolutions rather than write one. And don't say, "It is what it is," when you fail to meet your first goal.
These are two of the 19 words or phrases that appear in Lake Superior State University's annual List of Words Banished from the Queen's English for Mis-Use, Over-Use and General Uselessness. Among this year's picks are "surge," "water-boarding," "perfect storm," and "under the bus." You get the idea.
Another mis-used, over-used, and considered useless word that many in the workplace would like to see banished in 2008 is "performance appraisal," or "performance review." It's a process, surveys suggest, that's universally disliked and avoided and the subject of this month's newsletter.
In my December's employment outlook survey for the first quarter of 2008, 29% said they were planning on adding to staff, nearly 50% reported no changes, and 20% of you were split on undecided, and trimming payrolls.
Les Gore
Executive Search International
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Performance Reviews: A Final Curtain?
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Disliked by management and workers alike, will the annual, stand-alone performance appraisal be done away with? Is PMP taking its place?
Why Performance Appraisals Don't Work
As Susan Heathfield, in her online Your Guide to Human Resources writes: "How many people in your organization want to hear that they were less than perfect least year?" "How many managers want to face the arguments and diminished morale that can result from the performance appraisal process?" "Should salary increases be tied to a numeric rating on a performance review?" And what about grading standards? Some managers are hard raters of performance, some easy and some in the middle.
According to a study of 5,970 employees reporting to two managers conducted by Personnel Decisions International (PDI), the majority of these employees get inconsistent performance ratings. The study found that employees rated outstanding by one manager were rated lower by their other manager 62 percent of the time.
If you believe the true goal of the performance appraisal is to develop your people and improve your organization, you may want to consider moving to a performance management system.
The Performance Management and Development Process
PMP is a hot topic in business these days. Simply put, performance management is a process that includes activities to ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of your organization, a department, processes to create or deliver a product or service - and most important of all, the performance of your people.
It's about a shared understanding about what is to be achieved and how it is to be achieved. It is an approach to managing people that increases the probability of achieving success.
For effective performance management, strategic decisions have to be taken by senior management, with involvement from key executives. This should address the day-to-day decision-making process across all levels. The most important aspect is clearly defined goals which are relevant, reliable, and timely. The process should be able to track the progress to reach that objective, and should be:
Formal. A clearly defined process that everyone understands and accepts.
Frequent. Consistent information dissemination.
Relevant. Information relevant to the departments and decisions.
Reliable. Everyone believes in the information.
Timely. Agreed upon timetables, dates; actionable.
Tied to outcomes. Everyone is held accountable for their performance and is given the right tools to achieve the goals.
Feedback. Prompt, honest, concise, by all involved.
Leadership. People from different departments can collaborate on changing processes and procedures and making day-to-day operational decisions
For a complimentary, detailed Performance Management Process checklist covering preparation and planning, meetings, and follow-up, email les@execsearchintl.com.
There are a number of Performance Management and Development resources available, including books, articles, and consulting organizations, many with software that automate and deliver products suitable to your business. A few are noted in my useful links.
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Feedback
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If you would you like to comment about this article, or have ideas about future articles, please email me at les@execsearchintl.com
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About Executive Search International
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Executive Search International is a nationally recognized boutique firm providing best practice search and recruiting services for client organizations, ranging from multinational corporations to small entrepreneurial businesses.
Les Gore, founder and managing partner, is an over 20-year veteran of the "recruiting wars," and has been called "The Dean of Direct Marketing Executive Recruiters."
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Executive Search International