Implementing A Performance Management System (PMS)

A Performance Management System is about building trust, capacity and a respectful partnership between a manager and each of their employees. Some people see performance management as trendy words for the annual performance review. It’s Not… it’s much more! This is especially true if the organization is transforming and leading change.

In a time when employees don’t feel their employers are loyal, a Performance Management System is a commitment by employers to partner with their employees and help them reach their work goals, career goals and personal goals by investing in opportunities, mentoring, encouragement and training.

In a time when employers don’t feel employee loyalty, a Performance Management System is a commitment by employees to understand and respect the organizational values and to do their best to support the organizations strategic plan and improve team / organizational effectiveness.performance-management-plan-for-success

Note: One-Year plans are common for full-time employees. Part-time or seasonal employees still participate in Performance Management, but goals may be measured by project or a shorter time-period.

Step 1: Co-Developing A One-Year Performance Management Plan

Performance Management Systems define how an organization will support its employees as they pursue a set of goals. It also defines how each employee will support a department and/or organization strategic plan.

To set a One-Year Plan, each employee and manager should:

  1. Review the employee’s job description to ensure it is up-to-date and reflects the work the employee is doing and appropriate measurement criteria. This is especially important if the organization is leading change and transformation.
  2. Review how the employee’s work supports the teams and the organization’s goals, objectives and strategic plan.
  3. Identify three to five employee performance objectives for the year. These should be specific and measurable and dependent on:
    • The organization’s strategic plan
    • Key deliverables that are associated with the employee’s responsibilities
    • Employee goals
  4. Recognize that at some point, unexpected opportunities and crisis will happen and will have unexpected (positive and or negative), impact.
  5. Develop a more detailed work plan (tasks / tactics), based on the three to five employee performance objectives.
  6. Specify the consequences for the employee and the organization if they are responsible for the performance objective not being met.

Note: Experienced managers and employees will leave time for unexpected opportunities/crisis (practicing good Time Management).

Step 2. Monitor A Performance Management System / Year Plan

To be effective, performance must be continuously monitored. Therefore, when implementing a performance management system be sure to include an agreed upon way to monitor progress. In today’s work environment where autonomy, relevance and progress are important, monitoring refers to measuring results for both the employees and the organization.

One approach to monitoring I particularly like was introduced to me by one of my previous bosses; it’s what I call ’10-minute laser meetings’. In this case, my boss met with each of his employees once a week for 10-minutes to discuss critical issues on major projects. For each of these meetings, it was each employees responsibility to chair these meetings and be prepared to:

  • Introduce the project and what success looks like (the performance objectives).
  • Share what progress has been made towards meeting the performance objectives.
  • Identify any barriers that may prevent the employee from accomplishing the previously agreed upon performance objectives. (Get management input and support here)
  • Suggest what needs to be done to overcome any barriers. (Get management input and support here)
  • Identify if there has been a shift in organization priorities or if the employee has assumed new / unexpected responsibilities. (Get management input and support here)

Defining the appropriate measurement criteria is one of the most difficult parts of developing the strategic year plan. Remember people often respond better to positive reinforcement vs. punishment. I strongly recommend considering the value of intrinsic motivation to help managers encourage employees.

Step 3. Managing Shortfalls

Sometimes there will be shortfalls. Sometimes those shortfalls are outside of an employees control… and sometimes they are within the employee’s control. In the cases where performance fell short of objectives…

  • Stay positive and cordial – good rarely comes from hostile behavior.
  • Document the challenges/shortfalls encountered:
    • Answer the What, Where, Why questions.
    • Did the challenge fall within or outside of the employee’s control?
  • Are the change management and transformation plans impacting the project?
  • Identify opportunities for coaching… by the manager or professional executive coach.
  • Give constructive feedback in a non-threatening way.
  • Identify areas for training and development.

Throughout the year (perhaps quarterly), managers should formally assess each employee’s performance. The beauty of the laser meetings mentioned above (for example), is that both the manager and employee have up-to date examples of how goals are… or are not being met; there should be no surprises.

Step 4: Continuous Coaching / Having Difficult Conversations

Coaching / mentoring and managing shortfalls can be done by the manager or by bringing in a professional executive coach.

Implementing a performance management also means making sure everyone feel comfortable having difficult conversations. Learning how to give constructive feedback in a non-threatening way helps everyone address performance issues in a productive, supportive way and ensure that even challenging moments lead to a positive contribution.

The role of the coach is to demonstrate good listening skills and to deliver honest feedback. In a coaching role, the manager is not expected to have all the answers… but they do ask questions that help the employee and themselves analyze the situation. Coaching means working with employees to identify opportunities and methods to maximize strengths and improve weak areas.

Mentoring can include providing constructive feedback to address a particular performance issue if an employee is not meeting the agreed upon performance expectations. The beauty (and my belief), importance of weekly 10-minute laser meetings is that challenges or shortfalls are identified early and don’t have time to become critical issues… they are taken care of early when they first arise.

Step 5: Employee Training and Development Plan

A critical part of a Performance Management System is for the manager and each employee to identify areas for further training and development opportunities. These should support the workplace activities that the employee should undertake as well as their career goals and personal goals.

This step should not be taken lightly.  Training and development opportunities must be supported and pursued by the employee, their manager and the HR department. All parties involved must take a leadership role – no matter how high or low on the seniority scale they are.

The main goal here is to find, mentor, train and motivate… and therefore retain top talent all while also leading strategic corporate change. Hiring and training new people is a great expense compared to a modest training and development investment. This is a critical component to the long-term success of a Performance Management System… I cannot emphasis this benefit enough.

Conclusion

A Performance Management System is a much more than recapping performance once-per-year with an annual performance review. As I said above, this is especially true if the organization is transforming and leading change.

Performance management includes activities such as joint goal setting, continuous progress review and frequent communication. The idea is to ensure resources like talent are valued and maximized (monitored and respected), as much as resources like technology, equipment and finances are monitored and respected.

Happy communicating, mentoring, motivating… and leading change.

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A Checklist For Your Performance Management System

Performance management is a much more than correcting negative behavior throughout the year and recapping performance once-per-year with an annual performance review. It is much more.

Performance management includes activities such as joint goal setting, continuous progress review and frequent communication. The idea is to align an individuals core-competencies and goals to an organization’s core-competencies and goals. The idea is to ensure resources like talent are valued and maximized (monitored and respected), as much as resources like technology, equipment and finances are monitored and respected.

Performance management refocuses the lens on the individual, ensuring they have all of the knowledge, resources and motivation to exceed their capabilities and expectations… and because the individual does, so does the team and organization.

Checklist For Your Performance Management System

An effective performance management system will:

  1. Support each employee by being job specific, based on well written job descriptions, key performance indicators and job-related activities.
  2. Hire the right people by using a measurable interview / selection process (a BEI).
  3. Align with your organization’s strategic direction, culture and values.
  4. Be practical and easy to understand and use.
  5. Have the manager and employee work together to set personal and professional goals and behaviors… including measurement criteria. This includes why each goal and behavior is (or is not), important. This includes hard and soft skills.
  6. Create opportunities for clear and regular communication between managers and employees.
  7. Provide training and development opportunities for improving performance and helping employees achieve their work and career goals.
  8. Work with each employee to ensure their 3 top priorities (daily), are reflective of the agreed upon goals and Important Work (with exception of interdepartmental Urgent Work).
  9. Agree in advance how challenges will be managed.
  10. Provide ongoing constructive feedback when improvement is needed as well as positive feedback (praise), for work that exceeds agreed upon expectations.
  11. Train managers on how to manage, mentor, coach employees and how to have difficult conversations.
  12. Ensure there is commitment from management to quickly act on situations that are both positive and negative to support the process, the individual and the team.
  13. Periodically review the performance management process to ensure it is being applied consistently.
  14. Ensure each employee keeps a copy of the performance plan (work plan) so that they can refer to it.
  15. Establish an appeals process.
  16. Designing effective compensation and reward systems looking at the benefit of Intrinsic and Extrinsic motivators.
  17. Perform exit interviews to understand the cause of employee discontentment.

Each should refer to their goals regularly and meet to evaluate progress and make many smaller adjustments throughout the year.

Conclusion

If you are looking to create lasting change  look to how you can motivate your employees. When employees – and leaders are motivated they will do more… do it better… and finish earlier.

Happy communicating, mentoring, motivating… and training.

Click here to join our priority list to receive our latest Business Communication blog posts.

Bruce Mayhew Consulting facilitates courses including Business Writing, Email Etiquette, Time Management, Mindfulness and More…

Find answers to your Professional Development questions / needs at brucemayhewconsulting.com.

Call us at 416.617.0462.

4 Ways To Help Your Employees Motivate Themselves

Wouldn’t it be nice to have employees motivate themselves?

Helping your employees motivate themselves is easier than you might think – and it starts by helping them feel good about the work they do. A powerful approach I teach in my Leadership Training or Executive Coaching is called Intrinsic Motivation. At a high level, Intrinsic Motivation is about helping employees feel one… or all of the following 4 things:

  1. Making a difference – working on something important
  2. Learning something – growing – developing
  3. Demonstrating an expertise they have
  4. Exercising independence – over what they do, when and how they are do it

Helping employees exercise independence (point #4 above), is a scary concept for some organizations; they fear no work will get done. On the contrary… most of the time. Of course, a balance between autonomy and accountability must be outlined and agreed upon. Once that balance is agreed upon, when employees are Intrinsically motivated they will be engaged, work harder, work longer and be more creative. When employees are Intrinsically motivated they will be happier. When employees are Intrinsically motivated no one needs to be worrying about work quality.

Personal pride is a wonderful motivator.

Here are 4 ways you can help your employees motivate themselves.self-motivation

  1. The first opportunity is a best practice that is as old as the hills (as my dad would say), but it works. Encourage employees to break projects and/or long-term goals into smaller manageable chunks.

Why does this work? Breaking projects into smaller projects lets people feel they are accomplishing things frequently. Big projects can feel overwhelming… especially when we are working on multiple big projects / priorities at the same time. Smaller chunks of work also have the wonderful advantage of helping us mentor junior employees; for example, smaller projects can be explained and delegated to Millennials who want to gain experience.

A word of caution, do not lose sight of the main project goals. We can sometimes get too involved in the details of the smaller project and this might compromise the success of the large project.

  1. See mistakes as learning opportunities. A positive and supportive work environment will always improve employee effectiveness. We all make mistakes. Let me say it again… we all make mistakes, and we have a choice to point fingers at who may be to blame (if there ever is only one person), or we can see mistakes as opportunities to be even more creative, to try something different and/or learn a new approach. Trust and respect are huge when it comes to self-motivation and group motivation.

Why does this work? When we are scared to try something new – when we blame ourselves or others for mistakes, we risk locking ourselves into ‘how we’ve always done it’. If you stand still you can be sure there is some other organization that will innovate right past you. Positive thoughts inspire us – negative thoughts can pull us down… so, evaluate mistakes as learning opportunities.

The Best Dreams Happen When You Are Awake.

  1. Surround yourself with positive people. This doesn’t mean you have to spend time with happy, bubbly people 7/24; that would be annoying.

Why does this work? When we stay positive we feel better and are often more creative and more productive. When we stay positive we evolve. The more you focus on being positive – in life and at work, the more you will motivate yourself to passionately focus on your goals. Even during difficulty, positive people are looking for solutions – not holding a grudge.

People who see the glass as half-full are so much easier to be around. Negative thinking is unpleasant to be around and your best employees might quit just to get away from it. This means you might be losing valuable talent for no good reason. By encouraging a positive approach you’ll soon see your work environment will become a happy, creative and productive place!

  1. Write in a Journal. I know – I know… you just rolled your eyes. Please try to write in a journal every day – even if it is only a short paragraph while you sit having breakfast, on the Go-Train or when you have a private moment.

Why does this work? By writing you get to explore feelings you might be holding back… and I bet you will come up with the best solutions. You’ll also begin recognizing how many wonderful experiences you have each day and that some of your challenges aren’t so big – or aren’t so important. By keeping a journal you’ll be building a more positive mindset and you’ll find yourself more motivated and look forward to what’s in store for you.

Keep track of your thoughts and feelings. Most importantly, each day write down two things you are happy or excited about.

Conclusion

If you are looking to create change in your organization – lasting change – look to how you can help your employees motivate themselves. In fact, when people experience self-motivation they will likely do more… do it better… and finish earlier. You and your employees will not be able to adopt these habits overnight… but with consistent, positive attention, before you know it these 4 ways will start making a difference. I promise.

Happy communicating, mentoring, motivating… and training.

Click here to join our priority list to receive our latest Business Communication blog posts.

If you enjoyed this post we think you’ll like:

 

Bruce Mayhew Consulting facilitates courses including Business Writing, Email Etiquette, Time Management and Mindfulness.

Bruce Mayhew on Canada AM

Click on the image to watch us on Canada AM.

Find answers to your Professional Development questions / needs at brucemayhewconsulting.com.

Call us at 416.617.0462.

View Bruce Mayhew's profile on LinkedIn

Bruce Mayhew Consulting

I’d enjoy reading your comments on this post.

 

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