9 Warning signs that you need to reinvent your performance management process

Effective performance management is essential to any business. It is a crucial strategy execution tool which can help you to keep people accountable for achieving strategic objectives and deliver on outcomes.

However, there are not many organisations that get this right and realise the full benefit of a well-designed and well-executed performance management process.

Watch out for the following warning signs that should prompt you to take another look at your performance management process:

  • No alignment with organisational goals: Objective/goal setting takes place in isolation and there is no alignment to the organisation’s objectives.
  • Not focused on performance improvement: The process is administrative, compliance focused and does not contribute to the improvement of the organisation’s performance or strengthen the performance culture.
  • Performance management is owned by HR and not managers.
  • There is no consistency in how performance is measured: Your performance rating says more about your relationship with your manager and your negotiation skills than your actual performance
  • The organisational culture hampers transparency: Your current culture is not conducive to open and transparent performance feedback.
  • Performance results are unreliable: Most staff receive “on-target” ratings whether or not the business performs.
  • Your current performance management system is not flexible and forces a one-size–fits-all approach.
  • No consequences for performance: There is currently a lack of consequences for either good or bad performance in the organisation.
  • Managers are not equipped nor held accountable for performance management.

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