What’s REALLY important in a Performance Management system?

Daniel Egger in Brazil asked how to design a new performance management process for a large bank.

In my experience there are only 3 aspects of a performance management process that ever impact individual behaviour, and therefore business results;

– the degree to which the manager understands the company’s strategy and goals.

– the quality of the on-going conversation between the manager and employee.

– the support from the manager which follows from this conversation.

So my advice was to;

– Put line managers in charge of the design process, and charge them with improving the quality of the conversations happening around the business.

– Ensure any of the (limited!) structures, forms, processes and systems  put in place support the conversation.

– Keep away from elements designed to produce “data”.

Here’s the original conversation .

What would YOU change about your performance management system?

Please join the discussion by leaving a comment below. Thanks.

About Mick Verran

I consult, coach, facilitate and train, supporting companies as they execute growth strategies and leaders as they improve their personal effectiveness.
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