4) Regular progress reviews
Reviews should take place at least once every quarter and they should cover the following:
•Progress against objectives
•Feedback (positive and developmental)
•Adjustment of objectives in line with changes in the business priorities
•Review of the development plan
•Support required to move forward
Reviews should not require a lot of paperwork, just somewhere to record any amendments made. Any performance management process that makes it difficult to adjust objectives to take in account environmental changes should be simplified. Being able to review and update objectives is the essential component of building a performance management process rather than a performance management event.
5) Development plans
Part of improving performance is establishing where the shortfall is and finding a way to close the gap. Not only that, but you might be expecting employees to take on greater responsibility or new tasks. Their performance reflects on you and it is logical that you would put a development plan in place to ensure that they are able to cope with the new challenges. Longer-term development goals not only increase employee motivation but also make good business sense, as it is more cost effective to grow your own skills rather than recruiting them in.
So, in summary, effective performance management should include development plans that address:
•Shortfalls in performance
•Plans to equip employees with the skills to complete their objectives effectively
•Long term development goals
6) Capable managers (with the right skills)
The best process will fail if managers do not have the skills to have effective performance management discussions. A productive discussion where employees feel listened to and part of the process will encourage employees and spur them on to achieve their objectives and more. On the other hand an inadequate discussion where employees feel ignored and treated unfairly will demotivate them and at worst persuade them that there is nowhere else for them to turn leading to resignations and high cost turnover.
The skills required for this look very much like other effective communication skills:
•Active listening
•Clarifying (open questions)
•Summarising
•Encouraging
Managers can improve these skills through training but the best way to refine these skills is through practice and by receiving coaching and feedback from their own line managers.