Performance Management System Development and Implementation

Performance Management System Development and Implementation

The long term organizational health and success of your company depends not only on organizational strategies. It most importantly depends on people, people who are clear about their roles in the organization. People who are regularly apprised of their progress, offered support to improve their performance and incentivized to develop and exhibit desired competencies that lead to positive results. There should be tools that team leaders and managers can use to do all these. The purpose of this proposal is to offer the organization’s team leaders and managers the very tools they need to manage employees’ performance in order to help them achieve their performance goals. Having a well-written performance management system can achieve this.

Our goal is to  develop a holistic performance management system that covers planning, monitoring, developing, appraising and instituting rewards and recognition schemes. Specifically these are our objectives:

1. Assist in developing a comprehensive Performance Management System aimed at improving employee performance;
2. Develop a more objective system for rating performance;
3. Establish a rewards system that is focused on rewarding exceptional results and encourage continuous improvement;
4. Apply a change management strategy to ensure integration of the new performance management system into organizational culture; and
5. Equip employees with the necessary tools to plan, monitor, provide feedback, develop capacity, evaluate and reward performance.

Rationale:

Many organizations make the mistake of equating performance evaluation to performance management.  A real performance management system promotes performance improvement while a performance evaluation system provides data at best but mostly only promotes compliance among performance evaluators. An effective system promotes organizational or team alignment.

Team Alignment means that people see a line of sight from organizational goals to individual performance targets and that they are being equipped to give maximum contribution to the realization of said goals.

ExeQserve Corporation Consultants believe that the measure of a performance management system’s effectiveness is the general improvement in employees’ performance. If the system can’t do this, it is not worth the time and money invested in it. For performance improvement to take place however, users must use the system and tools according to their purpose.  This can only happen if the users accept the role they play in the performance management scheme and know exactly how to use the available tools for performance management.  These, we believe, are the causes and effects that we must address if we are to implement a useful performance management system that is aligned with the company’s strategic initiatives.

We propose to make some considerable revisions in the company’s existing system to achieve this proposal’s objectives. Our major strategy includes:

1. Getting key employees involved in the change process;
2. Training all involved in the concepts, development and use of performance management tools; and
3. Follow a change management model to ensure institutionalization of the desired changes and the integration of performance management in culture.

ExeQserve consultants have the experience and tools to carry out all attendant actions related to aforementioned objectives.

Performance Management System Components

We propose to establish a comprehensive performance management system that has the following components:

1. Planning – Setting performance goals and behavioral expectations
   1. Key result areas
   2. Key performance indicators
   3. Clearer competencies, behavioral indicators and standards
2. Monitoring – Creating mechanisms for regular monitoring of performance and giving feedback
   1. Score Cards and Dashboards
   2. Feedback mechanism
3. Developing – Clarifying managers’ responsibilities for developing capacity for performance through coaching and training
   1. Performance discussion and coaching tactics
   2. Maximizing effect of training on performance
4. Appraising – Establishing tools for auto-generating key performance indicators for performance evaluation and equipping managers to handle performance discussions more effectively.
   1. Auto generating scores for key performance indicators
   2. Techniques for more objective appraisal of competencies
   3. Performance Appraisal discussion techniques
5. Rewarding – Establishing policy for more effective use of rewards to reinforce positive performance.
   1. Migrate to a new rewards system that reinforces and encourages consistent positive performance.

Change Management Components

We believe that for any change to be successful, it has to be managed well. We are using John Kotter’s 8-step process for leading change as a way of ensuring that all relevant issues and concerns are addressed as we pave the way for the new performance management system.

This change management framework shall guide the progress of the committee as we introduce changes and fine-tune tools for performance management.