ABSTRACT

Creating an effective performance management system begins with defining success. That is, what does high performance look like in the context of the organization? Defining success includes identifying important work activities for each major role, the behaviors needed to carry out these activities, and the standards that need to be met. While many organizations focus on “raising the bar” on performance each year, this strategy is not necessarily the best way to support organizational objectives. Different business goals require different characteristics for success, and performance requirements should be tailored to the organization’s priorities. This chapter describes how to define success relevant to an organization’s business goals and then communicate these expectations effectively to employees.