Ever since I read these findings regarding the how Performance Management is key to strong business results I can not stop thinking about it. “Of those organizations with very frequent executive engagement with performance management, 81% had strong business results – and none had below-average business results. Only 35% of organizations with infrequent executive engagement had strong business results” (from talentmgt.com/source Bersin & Associates).
It has had an impact on the way I think about performance management versus coaching and development within organizations. I am inclined to remove the ‘score’ from the typical performance appraisal for leadership positions and lean more towards a coaching conversation. There are a few ramifications to removing the score that have to be well thought out. That said, for 90% of average to above average performers a scoreless, coaching, performance management tool is what I’m going to recommend. The 10% of under performers will be managed in an entirely different process called a Performance Improvement Plan or PIP.
How does knowing this impact the way you will manage your team/business?
As an entrepreneur myself it has me thinking seriously about my own professional development. It confirms that engaging with a professional coach (professional development coach, business coach, marketing coach, mastermind group, etc.) leads to strong business results.