Welcome to the final installment of our Talent Optimization series, managing performance to avoid the pain of “Performance Management.” For those of you who love doing annual performance reviews, skip this blog and write your own – we want to know your secret! But for the rest who find the reviews, and the conventional conversations that inevitably become about compensation (even when they are not), daunting, read on.
The difference between Managing Performance and Performance Management
Performance Management is a process. Companies use it measure each individual employees’ [annual] contributions and impact. It supplies data to judge, plan, and compensate. Managing Performance as a leader means being in tune with your team members. It requires you to understand;
- The work they do [at least at a basic level] and,
- Their individual strengths and challenges
With this information it is your job to help them navigate the work. This applies to all your team members. From the most junior to the most experienced. Autonomy does not negate the need for authentic leadership or performance coaching. Because, regardless of their skill set or experience, your understanding of each individual is essential to helping them grow. This will not happen through infrequent fly-by meetings, form feedback, or occasional conversations when things get challenging.
Managing Performance effectively means…
Managing Performance effectively means supplying continuous feedback and coaching. Here are some ways you can ensure you are able to do that:
Having regular one-on-one meetings with each team member
Schedule weekly or bi-weekly meetings to discuss performance. Monthly is not enough. These do not need to be long or complicated, you can even cancel them now and again by mutual agreement. But get them on the calendar and, don’t marginalize the person by being consistently late, multi-tasking, or rescheduling.
Incorporating regular performance Coaching into the relationship
Supply thoughtful, non-judgmental feedback based on your observations. Again, be specific. This is an area where the Situation-Behavior-Impact model for performance feedback may be a great place to start.
Supplying Performance Feedback
Do not overthink this step – simply ask the team member how they think things are going with a specific project or task. If you know there is a performance challenge in an area, try to surface it with questions NOT statements. Listening is the coach’s gold. So sit back, listen to hear and not respond. You may be surprised what you learn. Then work with your team member to incorporate growth areas into their ongoing performance development plan.
Requesting Performance Feedback
As a leader, you must also get performance feedback from those around you. That feedback, if you can consider it, will be invaluable to your personal growth. This is true whether the feedback is correct, or simply misperception. Because perception is reality to that person.
So, whether you accept it as truth in full or part, you are expected to handle feedback with maturity. Because to create trust you must provide an environment of psychological safety. That includes NOT showing behavior that makes your colleagues regret their honesty.
Managing Performance will make you a better leader
Can you completely uncouple Performance and Incentives?
As we said last week when we talked about Rewards and Recognition, formal incentive programs are foundational to most Performance Management processes. It is a simple reality. This is not a challenge if you are actively Managing Performance. Because the discussion is not an event but a culmination and summary.
But if you are not supplying consistent feedback and coaching, surprises will happen. Thus separating the pay increase from the time of the formal performance review is a nonsense device. Who are we trying to fool?
But, in regularly scheduled conversations about performance, you should never tie your feedback to ANY future reward. If you are addressing current behavior then incentivize in-the-moment. But veiled threats or dangling carrots will not improve future performance. They will, however, do a fantastic job of reinforcing the focus on $$$ and eroding trust.
Managing Performance is not easy.
Managing Performance is not easy. But it IS a leader’s primary responsibility to the organization and those they lead. It requires deep knowledge of the company, the work, and each of the individuals on the team. Therefore, if you are not talking in-depth to each direct report at least twice a month, consider whether the reporting relationship is appropriate. Everyone might be best served by them reporting to someone closer to their day-to-day. Because you cannot effectively manage what you do not understand.
We hope our Talent Optimization series has provided you with some helpful information about people and performance. If you would like one-on-one support, please get in touch. We would be happy to help you get in the best position possible to attract, hire, and keep top performers!
