Planning is an unnatural process; it is much more fun to do something. And the nicest thing about not planning is that failure comes as a complete surprise rather than being preceded by a period of worry and depression
Performance Management, balanced scorecard approach
Performance Management Process
Forward
To create a truly action and achievement oriented business, a working framework needs to exist which encourages us all to share our knowledge, seize opportunities and seek stretching challenges. We all need to support and be supported during the process and ultimately be rewarded for our success.
Our Values as an organisation underpin all our processes ? Performance is about achieving results, whilst Innovation is about new ideas and is the thinking aspect and our open, transparent approach helps to build Trust.
Performance Management is a natural and core process of management. Its emphasis on analysis, measurement, monitoring performance and planning are skill sets not usually found in the average motor trade manager. The more comfortable area for most of coaching and training for performance improvements means that it can be absorbed where there is a basic willingness to achieve at least the rudimentary aspects of good people management practice.
What is Performance Management?
Performance Management is concerned with the interrelated processes of work, management, development and reward. It can become a powerful integrating force, ensuring that these processes are linked together properly; it is a forum for establishing a shared understanding about what is to be achieved for the individual and the business over time ? usually annually. It is a process that takes into account both what has to be achieved and how it is to be achieved.
Why Performance Management?
Performance Management is based on agreed definitions of the contribution employees are expected to make in achieving the purpose of their role and department. This leads to the clarification of accountabilities, main tasks and objectives. It also means clearly outlining the knowledge, skills and behaviours required to perform the role effectively. Expectations about required performance, skill and success levels are therefore defined. The whole process exists in order to encourage and support high performance within the business, which helps us meet our goals. In other words it is intended to be a win/ win situation. Not to be confused with traditional appraisal schemes, Performance Management involves all members of the organisation as partners in the process. It is not something handed down by bosses to subordinates. It is a continuous process, not relying on once-a-year formal review. Overall, it attaches more importance to the processes of ?forming? agreements, managing performance constantly throughout the year and monitoring and reviewing results.
What does it mean for the individual?
Fairness, consistency and transparency in the assessment of performance, understanding what is required of you as an individual and how it contributes to business success. An on-going opportunity to discuss your performance and receive coaching with a formalised review maybe twice a year. Understanding the rewards you can expect for doing your job well, and those which you can expect for achieving results which are considered outstanding.
What does it mean for managers?
Ensures direct reports are focused on the business priorities. Enables development leading over time to increased performance, empowerment and delegation. Increases morale and motivation of direct reports. Facilitates recruitment and retention
What does it mean for the business?
Increased likeliness of long-term business success. Improved performance through on-going feedback and support. Drives a high performance culture
Agreeing and Setting objectives ? through the Balanced Scorecard or SMART objectives.
The standard format for setting objectives is through the Balanced Scorecard approach. The Balanced Scorecard is a business performance measurement model. It is aimed at aligning behaviours and business objectives. The BSC enables participants at all levels to track financial results while simultaneously monitoring progress in building the capabilities and acquiring the intangible assets they need for future growth. This enables the individual and manager to have a better balance to their objectives as it focuses objectives around four key areas that in turn align closely with business processes. These four areas might be Financial, Customer, Internal Business Process, Learning and Growth,
Progressive stages
Clarify the answers to the questions above and ask what you do on a daily, weekly and monthly basis to support success in each criterion. What actions do you need to take that will support these four perspectives. These are called initiatives. You should question whether anything that falls outside of these four areas is really adding value to the business as a whole. Set clear deadlines for achievement of your initiatives.
Finally
You need to start thinking of milestones ? interim and objective. Naturally, objectives should still be Specific, Measurable, Achievable but stretching, they will be Relevant to the business, suitable for a cascade process and, lastly they must have a Target date or timescales to achieve them.
Agreeing key Success Factors for the role
The Success Factor framework is the framework that outlines the attributes and behaviours needed by all employees within the organisation. It is recommended that between 6 and 8 Success Factors relevant and key to the role are identified and agreed. This is the style with which success is delivered by the employee.
Establishing and agreeing the training and development plan
Whilst there are a variety of targeted learning options, there are many development options to consider when defining how an individual will enhance or improve his or her performance. Courses often have a short-term catalytic value but most people learn from every-day experiences and challenges and everyday experience is less diversionary and often less expensive.
The following highlight these options:
Delegating more responsibility, authority and ability to take risks in current assignments, to broaden the employee?s role.
Job Enlargement
Assigning additional duties or new assignments to broaden the employee?s job content.
On-the-job coaching
Imparting skills and knowledge, answering questions, reviewing work, discussing progress and providing general discussion. Working through problems with employees, as they develop to increase their insight into how they can handle similar problems by themselves the next time.
Special Assignments
Providing an opportunity for comprehensive research of a problem, to enhance analytical ability, judgement, and decision-making skills.
Continuous Improvement Project
Allowing the employee to work within a group that is established to recommend solutions to a problem. This will help the individual to develop skills in working with others and gain a broader perspective of the problem, solution or department.
Job Rotation
Systematically moving the employee from one job to another (usually at the same level) to broaden their knowledge, experience and appreciation of various viewpoints and interrelationships.
Secondment
Providing an opportunity for an individual to take on another role or project,
Replacement Assignment
Allowing the employee to temporarily assume the responsibilities of another (e.g. a colleague) who is ill, on holiday, or otherwise unavailable. Benefits are similar to job rotation.
Understudy
Providing the employee with opportunities to work directly with a manager or supervisor, in anticipation of eventually assuming some of the supervisors? responsibilities, as a substitute or replacement.
Mentoring
Arranging for the employee to periodically talk or work with specialists elsewhere in the organisation to discuss and enhance business methods, management styles, leadership practices. A less structured form of this is ?informational interviewing?.
Involvement in Meetings
Allowing the employee to attend and participate in departmental or even Board meetings to enhance their knowledge, perspective and appreciation of the bigger picture.
Planned Presentations
Delegating more opportunities to present ideas, plans or findings will give the employee a chance to develop their research planning, organisational and speaking skills, as well as bringing them much closer to the topic.
Coaching/Teaching Assignments
Arranging for the employee to train others and/or act as a learning coach will build knowledge, clarify thoughts and views, and facilitate the learning process.
Open Learning/Study Materials
Providing manuals, journals, books, reports, videos, cassettes, and other reference materials that allow the employee to study at their own pace, and off-site. (Critical to follow up to discuss what has been learned, to reinforce efforts and show interest.)
E-Learning
E-learning is a convenient and effective way of learning new skills via the intranet or internet. Similar to open learning it allows the individual to study at his or her own pace. It is both flexible and convenient as the individual can select when and where to take the on-line courses.
External Courses
Arranging for the employee to attend outside development programmes, workshops or seminars to develop personal, professional, technical or management skills.
Academic Programmes
Encouraging the employee to pursue complementary degree, college and university programmes to acquire and enhance professional skills and knowledge, while gaining an ?edge? towards career development.
Self-Study Programmes
Providing self-paced, self-taught, package programs for the employee to learn at their convenience.
Reviewing
This is the formal review process that takes place every six months to summarise the on-going management of the individual.
Mid-year review
The first review meeting should take place mid-year and will be a review of performance and will openly discuss the following:
Job demands
Objectives
Agreed Success Factors
Training and development undertaken / required
Provide positive feedback on good performance
Outline key issues and concerns
Provide additional support, help, coaching, feedback
Although continuous review of objectives will happen throughout the year, this may be the opportunity to formally change objectives in line with changing business needs.
It is also an opportunity to review the individual?s on-going development and review learning from successes and failures. A guidance sheet has been developed to assist the preparation stage of the mid-year review.
Full- year review
The final review takes place to formally summarise the employee?s overall performance against the agreed plan (see below). Prior to the formal review meeting it is essential that managers and employees understand the purpose of the meeting and undertake adequate preparation to ensure the meeting is successful
Managers and employees should fully consider and discuss the following:
Performance against job demands
Performance against Balanced Scorecard or SMART objectives
Performance against identified Success Factors
Training and development undertaken and performance against development plan
Discuss development of direct reports (if appropriate)
Overall final performance rating
Career aspirations
Managing
We want to both encourage and reward high performance. The Performance Management process is designed to identify such performance. High performers, if given appropriate support and development, could be the source of enormous added value as long as the business can tap their potential.
High performers need opportunities; created to either accelerate the development of these individuals or to put them into a role that both challenges and stimulates them. Recognising that individual productivity has its limitations, these individuals must also demonstrate the ability to generate team productivity.
Managing Under Performance
Under performance can have a number of negative impacts from both an individual and team perspective besides the damaging business effects. Inevitably there are under performers in all organisations. This may happen for a number of reasons. It is critical to examine the reason for under performance during the Performance Review. It may be due to lack of capability, lack of motivation or it may be a lack of opportunity created by poor career management.
All of these have remedial action and the line manager should discuss their concerns with colleagues or HR resource. Once the cause has been carefully diagnosed, then corrective action can be taken by either following a Capability or Disciplinary Procedure or supporting the individual with coaching or training or the options outlined in both policies.
Coaching / Feedback
Coaching is the on-going guiding and supporting of progress essential to an individual's success in his or her role and features throughout the Performance Management Process.
Ultimately individuals are responsible for their own career development. If an individual is not keen to improve his or her performance it is unlikely that any advice or development intervention will help. Both positive and constructive feedback plays a critical role in the individual understanding where they are in terms of their performance. Feedback, especially positive, can have a hugely motivational effect on the individual that often drives high performance.
To download the file, click the link below.
perf mgmt guideline.pdf
