Episode E5.011 (NA) Build a Formal Performance Management Process

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Introduction
The one and done annual review was easy, comfortable for 364 days of the year, and ineffective.  People forgot what was meaningful, extraordinary among the day to day grind of getting things done.  
 
You’ve been focused on revenue and profitability.  Now, it’s your time to work on your business; to decide if you will move forward by selling the business or reinventing the business.  A performance management process (PMP) that is aligned with your company’s values, culture and accepts feedback at every level will be value added. 

Show Objectives - The Why
Create a company where a fully functional, fully implemented, fully utilized formal performance management process can infuse quantifiable operational excellence that results in customer satisfaction, employee/team loyalty and increased profit.

Build a performance management process that improves company performance – profitability, sustainability, and to scale.  

Key Issues- Owner’s Perspective

1. create inhouse competency model by profiling best performers, 
2. create a form to evaluate personnel against best performers - part 3, 
3. part 1 - company values added to form, 
4. part 2 - business objectives added to the form, 
5. create overall process and standard operating procedures, (6) create and conduct training on the system

What You Need to Know - The What
1.   Understand the organization’s culture
2.   Attract and recruit the best talent
3.   Retain your best talent
4.   Nurture the careers of your best talent
5.   Devise the formal PMP - revisit and revise if often
Blumberg, author of Startup CEO, offers a great visual for the delivery of feedback that I’d encourage you all to check out.
                                    Informal                               Formal
1:1
Performance Review

Hallway Hoc
360º
Performance
This matrix is a great way to “instill culture where feedback is wanted, expected, and doled out regularly” and “is the best way to get over people’s innate discomfort with feedback.” (Blumberg, p. 114)

What You Need to Do - The How

1. Set goals
2. Generate a development plan based on goals, objectives, and feedback
3. Integrate the aspects of each position into the development plan.
4. Build out the action steps to take to achieve the goals.
5. Execute.
6. Monitor progress.  Ask, are the steps taken offering results for the development plan?
7. Seek out feedback (this includes all CEO’s).
8. Identify obstacles and resistance.  Equip each person with the tools and coaching needed to successfully navigate the obstacles and continue to develop.
9. Offer instruction, mentoring, guidance, and coaching.
10. Re-evaluate the accomplishments and curate the learning.
11. Assess career objectives.  Plan future action steps.

Resources:
1.    15 Employee Performance Management Best Practices, VALAMIS, https://www.valamis.com/hub/performance-management
2.    The New Rules Of Talent Management, HBR, March-April 2018, https://hbr.org/2018/03/the-new-rules-of-talent-management#co-creating-the-employee-experience
3.    SHRM, Performance Management: A Roadmap for Developing, Implementing and Evaluation Performance Management Systems by Dr. Elaine D. Pulakos 2004: https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expert-views/Documents/Performance-Management.pdf
4.    Startup CEO: A Field Guide To Scaling Up Your Business, by Matt Blumberg, 2020, published by Wiley & Sons Inc. https://www.amazon.com/Startup-CEO-Website-Scaling-Business/dp/1118548361
5.    “Performance Management System – A Complete Guide”. Tech Funnel, February 26, 2020 https://www.techfunnel.com/hr-tech/performance-management-system/

Shows
Previous: Episode E5.010 Identify Best Practices for Innovation
Next: Episode E5.012 Summary of Season 2  


Written by Wendy Dickinson

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