Before we delve into why your company needs a performance management framework, let’s understand what performance management involves. This is a process carried out to ensure that the activities carried out by the human capital of an organization meet the goals and objectives of the organization. Performance must be managed on an individual level, a team level, department-wise, and process-wise.
It is key to note that performance management isn’t a one-time strategy; it is a plan that needs to be monitored, measured, and reviewed regularly.
What is a performance management framework?
A performance management framework ensures that the implementation of result-oriented management occurs at the individual level. The development and improvement of individuals then act as a foundation and contribute towards the overall business goals.
This level of individual management can be laborious and indeed nearly impossible without the intervention of a robust technology to measure and monitor KPIs. With the aid of technology, a performance management framework is a great tool to drive performance.
Key components of a performance framework
A performance management framework allows performance strategies and approaches to remain flexible and continue to evolve. Performance management frameworks ensure that everyone is on the same page that they have a clear understanding of what is expected of them and how to contribute towards the company’s goals.
It is likely that you have some sort of performance management system in place; if you do, use the framework to tweak it, if not, use the framework as a foundation to build your overall strategy.
There are a few key aspects that cannot be ignored when creating a performance management framework:
1. Setting goals
The first element of creating your performance management framework is to create a layout of the company goals. Does your existing performance management system address these goals? If they are great; if not, make the changes required to ensure they are.
During this process, get your employees to give you feedback on how they think they can contribute to the company’s overall growth.
Create an overall company goal and then set targets and objectives for each team or individual.
2. Determining objectives and targets
Once you know what goals you are aiming for, set specific objectives and targets that need to be achieved to achieve your overall company goals. Every individual’s and team’s objectives have to be clearly defined.
While traditional systems have worked to some extent in the past, OKRs are the most effective way to set objectives. Each goal is to be defined by stating exactly what that goal is, then you proceed to describe how that goal can be achieved, and the results are the intended outcome. This allows you to set a focused path and strategy to achieve each goal.
3. Using a data collection model
You then have to determine and implement a way of collecting your data. You have to know how each individual in your team is working towards their targets. You need to know how successful they are or what you could do to give them some help.
You could use 360° feedback systems, graphic rating scales, self-evaluation, MBOs, and checklists.
4. Planning activities and tasks
Have a clear idea of the activities you are going to carry out to ensure that your targets are met. What kind of performance improvement plans are you going to have? What employee development programs are you going to run? What intervals are these programs going to run?
Integrate the task lists into your team’s workflow using employee task management software; this ensures that they are reminded about their tasks and know what exactly needs to be done.
Now that you know exactly what your performance management strategy is doing and how effective it is make sure you review it according to the requirements. If you find that some targets are met, and others aren’t, shift focus onto those targets.
Even if your performance strategy is working great, you can always find ways to do better. The better your team’s performance, the better growth your organization experiences.
Why is a performance management framework important?
Your business will benefit from having a robust yet agile performance management framework in the following ways:
1. Workforce planning
The results from your performance management framework will show you how you can better plan your workforce. You may have to hire talent with specific skills that are lacking, hence the inability to achieve certain objectives.
You will also be able to identify learning and development needs, create the appropriate programs, and include these programs into your overall performance strategy.
2. Creating growth plans
An individual’s contribution is an excellent indicator of how they will continue to add value to your organization over time. To ensure they have constant motivation, start working on growth plans with them and plan their careers. This is a great way to ensure succession planning as well.
Using OKRs allows each individual to have a clear idea of what is expected of them. This creates a sense of accountability from each persona and eventually becomes a culture.
Of course, your performance strategy includes rewards and recognition strategies for those who perform well. This motivates employees to achieve those goals. Sharing the success of the strategy and showing employees how their contributions factored into the business’s success is also another great way of motivating your talent.
How to create a great performance management framework
Here is a quick overview of how to create an easy, step-by-step performance management plan:
1. Identify concerns and areas that need resolution
Pinpoint precise pain areas, and this allows you to focus your goals on creating a solution to that specific problem. Prioritize the most important concerns first. Get the big stuff out of the way and then move on to the other stuff.
2. Create specific goals and share them
Set Specific, Measurable, Actionable, Relevant, and Time-bound (SMART) goals. This way, you can easily measure your success.
3. Provide the means and the knowledge
Give your employees regular feedback on their progress towards achieving these goals. Ensure they are informed and have access to the skills and tools to achieve each objective.
4. Set up regular progress meetings
You need to have your annual reviews; however, it is also vital to have regular meetings with your team members. This lets them know that you have an eye on their progress helps you provide solutions to any obstacles they may be facing. It is a great chance for you to motivate them on their success so far.
5. Make plans for development
In an ideal world, your strategy should help achieve all the objectives; however, each individual is different in your team. You may have to help them with development plans and short-term remedial action plans.
- It is always about teamwork. Leadership, management, and team members all have to be on the same page working towards the same goal.
- Everything you ask of your talent must contribute towards the larger picture, that is, the company goals.
- Invest in professional development plans. The more skills and knowledge you have in your team, the easier it is to achieve your business goals.
- The most important thing to keep in mind is that all strategies need to be revisited, adjusted, and improved regularly. Focus on how to get better rather than what you’ve been doing wrong.
Choosing the right performance management system
The recent tech boom has created a vast pool of performance management systems; however, not all of them are ideal for your business. Read this blog to understand how you should choose your performance management framework.
Ready to take a more organized approach to employee management? Start by choosing a good performance management system.