This post explains why it’s important to manage business performance at all levels: corporate, team and individual. This approach works in most organisations of 10 people and above, all sectors.
- We explain how a whole business approach makes employee performance reviews more engaging
- We describe how effective performance management makes organisations more successful
- We look primarily at the rationale for taking this approach and signpost you to further detail around the methodology and sources of support
Let’s start with a few questions:
- Do you know how your organisation is performing, team by team?
- Do you have SMART* goals and success measures in place for teams?
- Are team goals and measures linked to corporate, and to individual performance?
If the answer to any of these is ‘no’, then read on …..
Employee performance reviews
Individual performance management reviews are widely used in organisations. They are often unpopular with staff, and managers find them time-consuming. Typically, personal objectives are set annually and progress is discussed at pre-determined intervals.
If these objectives aren’t connected to corporate objectives, employees may not be clear how they are contributing and the potential value of one-to-one performance discussions is lost.
Linking employee performance to team performance
The first step in linking employee performance reviews to corporate performance is to look at how teams are performing. For example:
- How quickly is the HR unit recruiting the right candidates?
- How many transactions are the operational staff processing per day?
- How many client enquiries can the customer service team deal with each month?
When measuring team performance, it’s important to keep the focus on what customers would be prepared to pay for. Sometimes these measures will be straightforward, at other times more complicated, depending on the process. Sometimes a best estimate is better than nothing.
A range of benefits arise from focussing on team performance. It:
- Encourages you to look at the system and not individual employees
- Reduces the likelihood of subjective, protective conversations with employees
- Promotes team engagement, good practice and performance improvement
- Enables you to prioritise areas for improvement
Linking team performance to corporate performance
Once you have a clearer picture of how each team is currently performing, you are in a much better position to ask yourself:
- Whether overall performance is meeting your customer requirements
- Which areas are limiting overall performance
- What are the key priorities for problem solving
There are benefits of linking employee and team performance to corporate performance in this way. It:
- Provides a clear line of sight, which engages people in a common purpose
- Helps you objectively decide, with data, what improvement action to take
- Links employee strengths and development needs to corporate objectives and plans
By linking performance, measures and goals through all levels, you will get a clearer picture of what is needed to improve or grow your business. You will better understand which areas to focus on. The performance shortfall and the urgency will dictate start dates and timescales.
*SMART = specific, measurable, achievable, realistic and timebound.
About the author
Maureen Whyman is the owner of Lose the Box, a Business Improvement consultancy based in the East Midlands. Specialists in Continuous Improvement, Lean Thinking, cultural and behavioural HR, Transformation and Change Management, they support leaders, managers, teams and individuals with Business Improvement, via coaching, training and on-site workshops.
Lose the Box consultants blend simple science with creative facilitation, getting people to work much more effectively together. Their unique approach ensures skills are transferred, achieving sustained efficiencies and measurable benefits for their clients. See testimonials here.
Please contact us on 07824 660 120 or email@example.com for a no-obligation discussion if you think we could be of assistance.