Performance Management Model
Transform your business with precise, on-time management.
We live in a result-oriented environment, where companies must keep their performance on top all the time. Markets require businesses to adapt constantly and leaders must be capable of making informed decision in short time. Growth opportunities must be exploited quickly, and challenges must be addressed on the spot.
Many companies have established a vision and a mission that define the business as perceived under ideal conditions, working as a reflection of what owners, leaders, boards and others want their business to be, but many times reality differs, companies take too long to discover weaknesses and performance is not addressed directly.
Performance management models work by aligning your company, its employees and the day-to-day results with the original values, methodologies and most importantly, actions, that move the business towards its original goals. Understanding that companies do not exist without results, while driving team members through a positive environment that enables result orientation.
The success of Performance Management is based on creating sustainability and growth for companies by establishing a management model that understands the importance of having a structured, transparent approach that recognizes performance as the center of the business and which aligns departments and individuals for a common objective. Creating an environment that rewards success and at the same time makes individuals accountable.
Companies that work under a Performance Management Model tend to attract top performing resources, as these individuals are in the business to generate results and be accountable. This means that a correctly implemented model becomes not only a trustable way for leaders to develop their companies, but also an excellent tool for human resource management as committed employees will take advantage of the model and use it to grow both personally and professionally, while employees how are not committed with the company will be held accountable as to the results they generate.
How do I implement Performance Management in my company?
Compare your Business Vision with your Business Reality
You will have to design the baseline that will rule the model for your company, but to set a baseline one must first execute a reality check. Provide yourself with the necessary visibility and information required to start taking action, but, before thinking you already have visibility, take a step back and analyze your company as a consultant would. Think transparently about the current results your company generates and the potential it has, question the data and compare these results with the original vision of your company.
Work on analyzing not only how your business performs in general, but go in-depth and understand how your leaders execute, how your departments behave, your visibility levels and what actions drive the needle in your business.
Your baseline must be easy to understand for you, providing you with a simple comparison of where your company is regarding performance and where you want it to be.
Create a Results Control Tool
Once a clear baseline has been defined, follow up and tracking are essential. This will be your key to ensuring a successful implementation of the model, providing you simple visibility of the tasks and results executed by your team. Results control trackers and dashboards allow you not only to track results, but also to validate that these results are followed by actions that provide sustainability and reinforce successful behaviors.
A results dashboard must provide you with enough information to understand how your business is performing currently and what departments, teams or individuals are owning the results (both positive and negative). Keep in mind that you are creating a performance management model, so avoiding analysis paralysis is essential to create an effective view of your results, without overloading yourself.
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Create a Development Model linked to your Management Model
Once you have the visibility of the results and actions related, employee development comes into place. Transform the way you develop your resources with an approach that understands the real benefit of on point development and focuses on adding value instead of hours. Align the principles and guidelines that rule your internal development programs to ensure that all investments reflect their value, turning your Learning and Development department into a very valuable asset.
The Development Model must become a tool for you and your leaders, that provides you insight on how results relate to individual skills but also removes justifications for employees that do not achieve the expected results.
Now that you know the three keys to implementing a Performance Management Model, start thinking about your company holistically. Most businesses have departments delivering services almost as independent companies, though this may have work for some, real top performance is achieved when your whole company flows as one. That is why Performance Management Models aim to break the traditional exclusive approach where only one department is involved and instead creates an inclusive environment where the most essential departments participate, this creates synergies that allow different leaders and teams to work under the same objective and under the same model. For example, the integration between Human Resources and Commercial areas is key for driving results within teams and creating a strategic approach that promotes and recognizes top performance, but also understands how personnel management works and when to implement different actions. Leaders must be conscious enough to recognize when their department adds a valuable insight, this will represent the difference between an integrated company and a bureaucratic one.
How do I know that this model applies to my business?
Performance Management applies to any business that generates results and has processes and actions related. This means that it applies to all kinds of businesses, with some being simpler models and some being more complex. For a successful implementation of a Performance Management Model, you need to define what success and performance means to your business and from there create a personalized action plan that aligns your company to the new model.
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What steps should I include in the implementation?
Step 1: Training & Communication
Step 2: Model Design
Apply all Performance Management principles, work with your key leaders to design a specific model for your business, remember to maintain the conversation assertive. The process of creating a Model must be a reflection of what you want to implement. Change begins here. A model must include at minimum the essential manuals and guidelines that will redefine the way management executes on your business.
Step 3: Implementation
Step 4: Support and Consulting
Once the Model has been implemented maintain at least one individual in charge of following up on performance evaluations, alignment assessments, general consulting, model revisions and more. The implementation is a cultural transformation process this means that individuals will need support and consistency as they adapt to the new way of work.
What to do next?
Performance Management is for companies committed to succeed. Analyze your company and take action. Identify which employees are essential in the implementation process for your company and get them onboard, look for individuals who are result oriented, are engaged with the business and could be used as role models. Define how deep you want to go into the model and set an action plan. Remember to keep a human approach to results management where you both enable employees but maintain accountability. Identify actions based on results and stick to the Performance Management Model designed.
Do you need help creating a model to transform your business?
Our consultants will help you design and implement a tailor-made Performance Management Model for your company, get in touch with us to learn more