Outperform The Competition With Good Performance Management

Any organization looking to stay at the top of its game should focus on performance management. The same applies to an organization that is working at outperforming the competition. By definition, this simply means putting in place processes that measure your workforce’s ability to not only meet set goals, but also exceed them. Once measured, these efforts should also be rewarded in a bid to keep employee morale up and to encourage their engagement as well. The result is that you will increase your overall productivity, create employee loyalty and beat the competition while at it.

How to Create a Performance Management Process

  • Begin by creating a corporate strategy and setting individual goals for each employee and communicate them to each employee.
  • Monitor progress and then provide management by coaching individuals on performance.
  • Each person’s performance should be appraised and feedback given on formal documentation.
  • Compensate each person based on their performance. Reward goal achievement and create a performance development plan so that you can adequately address the gap for those who do not achieve.

Defining Individual Goals

When it comes to managing employee performance, this is the place to start. Define each person’s individual goals and ensure that they are aligned to the company’s corporate strategy. This process should be collaborative; therefore, you must ensure that the employee takes part in setting their own SMART goals.

  • Specific - The employee needs to understand exactly what the expectation is, when it is expected and how much of it is expected.
  • Measurable - Ensure that there are milestones by which you both can measure progress made. These also act as motivators for the employee.
  • Achievable - If the goals are unattainable, the employee will give up and not even try to achieve them. They should be within reach, but require a little more effort to attain.
  • Relevant - They should have impact on the overall strategy of the company.
  • Timely - They should have a time frame within which they are to be achieved.

Monitoring Performance

Once you have set the goals, monitoring performance is a critical aspect of success. The best way to get the high performance you are looking for is to ensure that you carry out an appraisal each week of both individual goals and team goals as well. This will allow you to make the needed adjustments, get in additional resources, and alter timelines if needed.

Carrying Out an Appraisal

It is important to have all your performance management tools in place and working before you carry out your appraisal. Your tools will give you the various assistance you need in the form of coaching tools, words to use and writing assistants. The appraisal itself will include observation, listening, recognizing the person’s effort and providing constructive feedback. Effectively communicate to the employee what they have learned, and what still needs to be learned.

Performance Based Compensation

With a successful strategy, you will be able to keep your most talented individuals and see your performance as an organization soar. This is a motivational tool and allows you to reward those individuals who are your top performers while coaching the underperformers. Team goals will encourage your employees to work together so as to achieve their common goal.

Conclusion

If you have been struggling to align and engage your employees so that they rally behind you and work together to achieve the corporate strategy, then having a good performance management process and plan is the key. Not only will you gain a competitive edge, but you will also save time and money in the process.

1 Comments

  • They say that you need happy employees if you want a smooth running business and I think that it's absolutely true! Even for my self storage business, not a lot of people would see working here as a career, and it's important to help people see that we do value all the work they do and show them how they can rise through the ranks to possibly manage a facility like this on their own in the future too!
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