ABSTRACT
The media is filled with stories of organizations that have transformed their approach to performance management by getting rid of ratings and replacing them with real-time feedback and coaching. While these stories are inspiring other organizations to change, most leave more questions than answers. Some organizations would like to change but hesitate, fearing the disruption that change brings. However, in most cases performance management is in desperate need of change; it is too expensive, it causes poor morale, and the data from it are not useful for making good talent decisions. The debate over performance ratings and reviews has been the impetus for many conversations about change. However, the question of whether or not to have performance ratings is not the best place to start. A better place to begin transformation is by asking to what extent the performance management system helps or hinders the organization in achieving its goals. This chapter provides guidance in thinking through and making the case for change to transform performance management from a burdensome process to one that benefits the organization in achieving its objectives.
