ABSTRACT

Before planning a performance management transformation, it is imperative to understand why performance management so often does not work as intended. Performance management has evolved from a relatively straightforward way of evaluating employee performance to a long and arduous process. Performance management today is too burdensome and time-consuming for the value it provides. At the core of this problem are several faulty assumptions about what actually drives performance. Building a better approach to performance management requires addressing the root causes of the problem—for example, instead of making performance management serve too many purposes it should have a singular focus on driving high performance. This chapter addresses the root causes of performance management failure and provides a framework for effective performance management. At the center of the framework is the concept of partnership between employees and managers. Supporting the partnership are core performance management practices: setting expectations, measuring progress, and providing effective feedback and coaching. Organizations can enable these practices by ensuring a clear purpose, defining success, using data to make good decisions, and overcoming barriers.