The Role of Performance Management in Driving Business Success

Staying ahead in business requires more than innovative ideas and the ability to make quick decisions. Only strategic performance management ensures success. However, the modern business scene is never static but subject to constant change fueled by technological advances, legislation, consumer preferences, and the economy. Consequently, companies must learn to adapt quickly and appropriately by optimising efficiency and productivity in the ongoing challenge of achieving and maintaining that coveted competitive edge.

In essence, managing performance can best be described as ensuring employees’ individual and collective efforts and abilities fully align with their company’s stated objectives. It is a plan to promote a continuous cycle of improvement and should not be confused with the traditional task of conducting annual staff appraisals.

The Key Components of a Strategic Performance Management Programme

The process is best conducted by a third party, which should not be seen as a criticism of HR personnel but as a means to ensure relevant expertise, extensive experience and, above all, complete objectivity. One of the first requirements is understanding the existing relationship between managers and employees. The facts can best be established by asking employees for a frank, confidential appraisal of their managers and vice versa. Armed with this information, a performance management consultant can identify the shortfalls of each group and devise plans to overcome them.

One might compare this exercise with a long-distance hike. It can only work if everyone is committed, suitably equipped and knows precisely where they are expected to go. Hence, the next step should be:

• Goal Setting: It’s not enough for managers to set goals and list them in an email to all staff. Everyone needs to know their role in attaining those goals and understand the key performance indicators that measure their progress towards achieving them. Like the hikers, employees need the right gear, which, in this case, means the required knowledge and skills and the appropriate mindset. Such qualities are usually assessed based on past performance. However, psychometric testing can provide a more accurate insight into deploying employees to optimise their productivity and will also expose the need for training where indicated.

• Performance Monitoring: Regardless of the specific company goals, a performance management programme aims to improve all key areas continuously, so suitable strategies to evaluate progress are vital to expose any factors that may need attention. Sometimes, a critical examination of the outcomes will reveal the need to reevaluate certain objectives and amend them accordingly.

• Feedback: Whether positive or otherwise, feedback can be invaluable. All businesses should actively encourage and facilitate frank, two-way communication between team leaders and their team members. This strategy will help build trust, employee loyalty and a shared commitment to attaining those all-important goals.

• Incentives: While some might run the Comrades purely for prestige, employees invariably perform best in exchange for more tangible rewards. A realistic incentive scheme will encourage goal-driven performance.

Professional Help With Performance Management

The Orgro team consists of psychologists, psychometrists, and problem solvers who focus on people and their role in the workplace. We can assist you in all the areas mentioned and anything else you may need to achieve optimal performance. Why not contact us about starting a continuous improvement programme to boost your business success?