Small and medium-sized organizations often fail to utilize associate or employee reviews properly or even at all.
Providing your associates with timely feedback as part of an interactive plan to develop their skills and abilities should be a key component in every type of organization. Training and building a culture of excellence is one of the few things that an organization has complete control over.
The excuses are numerous, ranging from a lack of time to the perceived absence of a return on the investment of time and resources. Some organizations do reviews but do not use the tool effectively, which is almost as bad as never using them at all.
Performance Conversations are different: they are tailored and much more interactive than traditional performance reviews. A conversation by definition involves collaboration and two-way communication. A performance conversation is almost as much about using the insights of the associate to develop their skills as it is the organization directing goals and targets for the associates. A performance conversation is a living document, a tool to strengthen organizations and properly utilized it can be one of the most valuable competitive edges of your organization. These conversations can dramatically improve any kind of organization, both “for profit” or “not for profit.”
The fundamental elements of an evolving Performance Conversation system include:
Interactive. A performance conversation should never be a surprise for the associate. Associates need to prepare as much as the manager does. Schedule them as often as necessary: once per quarter is a good place to start. Create a framework for the conversation and allow it to evolve to “fit” the associate and the organization as both grow and develop.
Begin with reviewing previous conversations. Discuss the successes or issues that helped or hindered the goals established in previous conversations. The key is to agree on what skills the associate wants and needs to develop moving forward, then work together to create an action plan for the next period.
Actionable. The goals and expectations agreed upon in the performance conversation must be things the associate has the opportunity and skills to influence. Keeping the scope of the expectations clear will help motivate the associate. When the scope is too wide and relies on too many outside influences to succeed, the associate will become disillusioned and frustrated.
Achievable. The expectations in the performance conversation must be realistic and appropriate based on previous expectations, as well as the current and future skill levels of the associate. I have seen many organizations establish bonuses based on completely unrealistic and unachievable targets. Having unachievable goals will only lead to resentment and failure.
Measurable. Whatever goals and targets are agreed upon, they have to be measurable. Goals and targets should not be subject to interpretation. The clearer and more concise they are, the more effective they will be to develop and inspire your associates. There should also be a mechanism to provide feedback for the associate’s progress multiple times throughout the review period.
Living Document. A performance conversation is a tool to inspire, encourage, and reward associates by building their skills, attitudes, and behaviors. For the review period, it is the central framework for developing the associate and its discussions and monitoring should be used frequently. The performance conversations should also evolve and develop as the associate moves through skill levels and as the organization grows.
Frequent. Annual performance reviews that are done rarely are virtually useless as a motivating tool. Performance conversations should happen regularly I would suggest quarterly. They are the framework of your organization’s training cycle for any associate, whether they are just starting with your organization or have worked there for many years.
Purposeful. Performance conversations are initiated to improve specific aspects of an associate’s performance; far too many reviews are vague and lacking in focus. Limit the breadth of areas of improvement to what can be tackled in one period, as trying to do more will undermine the process. By having regular and effective conversations, managers and associates can dramatically improve the performance of the associate as well as the organization.
Rewards. By effectively establishing and measuring achievable performance targets, the rewards for that associate and indirectly for that manager are easier to achieve. Rewards can be monetary, but could also include increased responsibility, peer respect, and personal job satisfaction. Rewards are much easier to achieve when associates feel the mechanism for achieving the improvement is interactive and they have the ability to help set the targets.
Corrective/Disciplinary. Performance conversations are not always positive. Negative performance conversations should be rare. The purpose of the living document allows for goals and targets to be regularly discussed. Each associate and manager should therefore be able to recognize when the direction of the associate is moving the wrong way and take corrective action long before the actual date of the conversation.
Specific. “One size or standard” review forms are essentially unfair. Ideally, each position in your organization should have a performance conversation template tailored for that position. Standard review forms are okay for broad strokes, but for the subtle nuances that make the difference between a good associate and a great associate, having a tailored review is much more effective.
Associate Opportunity. To be truly responsive and transparent, a performance conversation should also allow the associate to speak freely and without retribution. This point is especially important because the conversation should include discussions about the organization and what it does well and does not do well. Honest and open exchange of criticism may initially be difficult for some managers to hear. However, organizations that pride themselves on being truly interactive should welcome their associate comments, particularly when presented in a respectful environment.
Are performance conversations more work and more effort than regular reviews … “YES!”
Performance conversations are worth the extra effort because training and developing your associates is truly the one thing organizations have complete control over. So many other forces are fully or partially beyond their ability to control, but training and culture are different sides of the same coin. Organizations that focus on building using performance conversations are usually the most successful and longest lasting of enterprises.
Good luck,