Does Performance Management at your Organization Help or Hurt Productivity?

The first step in solving any problem, particularly if it is performance management related, is to NOT MAKE THINGS WORSE. Yet I have seen it happen. An organization with motivated, engaged employees implements a new performance management system and soon happy, productive employees checkout and become disengaged.

This can happen at organizations of any size, some of them are well known. In a recent Bloomberg article, Spencer Soper describes how Amazon’s “Pivot” Program gives underperforming employees three options.

1. They can quit now and get a severance check
2. They can rapidly improve their performance over the next several weeks. (Performance Plan)
3. They can participate in a formal appeal process

I don’t know enough of Amazon’s culture to judge this approach, but on the surface, I have some serious concerns. In my experience, work environments that foster motivated, productive employees tend to be strong on the people component. Yes, technology and processes can (and should) play a role, but most of us are motivated more by people than machines or rules. Success in each of the Pivot Program options falls squarely on the shoulders of the employee.

I once worked with a couple of senior managers helping them identify steps they could take regarding a fairly serious employee performance problem. It was the type of problem that Amazon would probably refer to their Pivot Program. Before we started discussing options for improving the employee’s performance, the senior managers made it clear to me that they felt the employee had the skills to be successful and that as managers, they felt it was their responsibility to find a solution. In fact, they felt strongly that anything short of getting the employee back on track would have been a failure on their part. This was a refreshing approach. In this case, the employee had two partners that she knew were dedicated to her success. The outcome was a good one. Had she been given the three options above, I suspect it might not have turned out as well.

There are some very good performance management tools on the market now. Before selecting one, I recommend taking time to understand your current culture, values, and goals. What are the unwritten rules for how decisions are made and work gets done? What are your people priorities and how will they be strengthened by how you try to manage performance? Smart managers know that they really don’t have the ability to “manage” performance. At best, they might have the ability to “influence” performance. They use this mindset to partner with their staff. When they have discussions about employee performance, they spend most of the conversation forward facing as they explore avenues for success in the future.

If you are interested in learning more about performance management and employee engagement options, click HERE to schedule a quick introductory phone call.