Performance Management System
A well designed Performance Management System, once successfully deployed, can be the greatest ally in creating high performing organizations.
The investment and efforts that have been dedicated to Performance Management Systems are vast. Even so, we still hear of many cases where they do not live up to their promises and rather lead to disappointing results. Whys is that so? The answer lies within three simple words – Poor Performance Management – and even though sounding simplistic it is actually multifaceted.
Performance Management is a holistic and dynamic process which engages a series of activities that when working in harmony they contribute to high levels of organizational performance. Performance Management is about strategy, people and processes fully integrated within a culture that encourages teamwork, open and honest communication and collaboration. Miss an element and all you will have will be a system producing annual meaningless statistics and that people will hate to use.
At Human Asset we understand that a Performance Management System will be bespoke to each individual organization, depending on specific circumstances.
That is why our approach into developing performance management systems is designed to reflect upon these differences and while capitalizing on them we can help you design a system that will give you a competitive advantage.
The below diagram demonstrates in brief our approach whereas each phase is more thoroughly explained in succeeding paragraphs:
Phase 1: As a first step, via executive meetings, we make sure that all elements that make up the overall organisational identity are clearly and thoroughly defined. This information will be embedded into peoples’ workshops and aims to pass a clear and vibrant message as to the management’s expectations. Therefore, it is considered as the cornerstone of the Performance Management model.
Phase 2: The second phase is our field work. By the means of interviews, discussions and collection of relevant documentation we aim to gather information relating to the organisational policies and processes, common practices and culture.
Phase 3: The first series of workshops aims to ensure that all people are aware of the overall organisational strategy, their role into supporting the successful achievement of strategy and how this reflects into their jobs and daily duties. At the same time we encourage people involvement in defining the parameters against which their performance will be measured and will set the grounds for their future development plan and/or reward. Our experience indicates that people participation is of very high importance as they will embrace and support a Performance Management System only if they consider it fair. Is there any better way of achieving this from keeping your people in the loop of the development phase? The final outcome of the workshops is presented to the Executive Management for further discussion and final approval.
Phase 4: The second series of workshops is of more practical nature and aims to introduce people into effective ways of target/goal setting and develop the People Competency Framework in cases where these are not present. In the event that competencies already apply, they are adjusted (where necessary) and integrated into the new Performance Management System.
- Target/Goal setting: We consider target setting a very important contributor for the success of a successful Performance Management System. Targets can either make or break an organisation thus they need to be set correctly and clearly from the very first time. Setting targets in the executive boardroom is not always the recommended approach as the ones who feel the heat into achieving them are the people in the front line. Are the targets achievable? Do they have the skills required to achieve the targets? Do they have the means and support to achieve the targets? Surprisingly all these are issues that come to the surface, during the workshops that are given little or no attention during the target setting period. We always aim that our workshop teams are comprised of diversified workforce, from various backgrounds, departments and levels. This is only how they learn how their actions at individual or departmental level affect others and consequently the entire organisational performance. At the same time people learn how to set individual goals that are aligned with organizational strategy and objectives. All these are finely tuned and delivered via practical exercises and guidance by our experienced consultants. It is imperative that the entire process is supported by the top management.
- Competency Framework: The competency framework is of equal importance as the qualitative and quantitative parameters of a performance management system. They define the framework of expected behaviours of an individual within the organisation. Our approach to developing a competency framework model involves the use of the HR Mentor. The HR Mentor is based on international standards and provides the organisation the flexibility to establish its own competency model for each individual job post. For more information please see our Competency Framework section. (this will be a link to Competency section)
Phase 5: At this phase our consultants will create all the Performance Management System tools including:
- Rating Scale
- Development Plan tool
- Reward Policy
- Performance Management System Guides
- Learning and Development Guides
- Performance Managers’ facilitator guides
- Period end reporting template
All material is presented to the top management prior proceeding to the implementation stage.
Phase 6: This is the implementation stage where all people at all levels will be trained on the new Performance Management System. It includes sessions for apraisees as well as for appraisers. We also provide support on initial launching communication material.
Phase 7: No Performance Management System can be complete without an assessment phase. Thus following the first cycle of actual implementation, usually after twelve months, and by the means of interviews/focus groups, audit and data review, we assess the system towards its practicality and effectiveness and recommend any adjustments where necessary.
Further to the services that are included in the process of developing a Performance Management System we also offer consulting services in the following related fields:
- Development of behavioural competency framework (this is to be a link with the individual service)
- Performance Management System Automation including year-end reporting
- Evaluation and adjustment of current performance management system