As you'll recall (though you've undoubtedly been doing your best to forget), last week we advocated throwing out your performance management process because it's likely a terrible waste of time, energy, emotion and money. And in these times -- or in any times, for that matter -- what organization can afford to waste time, energy, emotion and money? None that we can think of.
Actually, what most organizations need now is a way to increase the number of outstanding performers on their payroll. Enough of this obsession with normal distributions (a.k.a., bell-shaped curve), where only a select few people can be considered 'top' performers -- and, shockingly, where a vast majority of the employee population doesn't even know what qualifies as 'outstanding' performance. How can you expect people to aspire to something that's ill- or undefined?
Enough of the quota system -- whether written or otherwise -- in which a fixed number of employees can be considered outstanding. Enough with the obsession with rating performance. It takes too long, it diverts many from the job of work (note the nice tie-in to the title of this blog), and it doesn't work. Toss it. And consider something entirely different (with apologies to Monty Python).
We suggest an approach that will measurably increase the performance of your organization. Here's how it works:
1. Define 'world class'. Simply put, what level of performance must your organization achieve if it's to be considered world class? Substitute 'world class' for any concept you like, as long as it's:
- Ambitious, so as to capture the imagination of your people, and
- Compelling, so as to grab the hearts of your people. Critically, our bet (based on years of research) is that your people want your organization to be great. If they don't, you're in more trouble than you think.
Your definition of 'world class' should be clear and include concrete metrics. This is not a vision statement; instead this is a definition of what you believe your short-term business objectives to be and what 'winning' looks like.
Do this at the enterprise level. Then within each division and department. If you have a good Strategic Plan, you should already have the definition -- at least at the enterprise level.
2. Within each department and work team, create an operational definition of what it will take to become world class. That is, what do we need to do to perform at a world-class level?
There are two keys to this:
- The use of 'we', and
- A focus on becoming best-in-class.
Emerging from this discussion, if done well, will be a set of tangible, observable behaviors that will help the department/team contribute brilliantly to the organization's goal of becoming world class. This list becomes -- get ready, here it comes -- the definition of outstanding performance that is typically lacking from the vast majority of performance management systems.
What's powerful about this definition is that it's tied directly to the organization's goal of achieving world-class results. Maybe of greater importance, though, is that employees helped create the definition. As a result, no more disconnects. No more will employees not know what 'outstanding' looks like. And, thankfully, no more will 'showing up on time' and/or 'good attendance' be viewed as outstanding performance.
A quick side-note for the skeptics among us (you know who you are): EVERY time we've implemented this process, employees have set the performance bar higher than it had been by the department or work team's manager. Why, you ask? When we've asked, we've heard the same thing repeatedly: Because employees want their company to win, to be the best in class. And when given the chance to set a standard for excellence, employees will set it sufficiently high to enable their department or their team to help their company outperform their competition. This competitiveness, this eagerness to win, is a key driver of this process.
Okay, at this point we know what winning looks like and we know what we need to do to win. We're cooking, to be sure, but we're not there yet. Arguably, we've saved the best for last.
3. Help each other become world class. Yes, you read that right. Create a way to help everyone perform at the highest level, a way to help everyone perform brilliantly.
(Take a few deep breaths if you're feeling dizzy. This concept may not be for everyone. Probably only for those who want to beat the competition.)
This concept is based on research -- ours and others -- of high-performing teams in sports and in corporate settings. You've seen how athletes help each other during a game? The same can be seen in teams that consistently exceed their goals. Team members helping improve the performance of their fellow team members so that the team, together, can win.
But, but, but, you sputter. This can never work. We don't talk about performance with each other. Team members must be nice, play nice, overlook the weaknesses and deficiencies of their colleagues -- even if the performance of the team suffers. Talking with each other about how we're doing in our jobs to help our team win is something we simply don't do. That's the job of the manager. Once a year.
Right. And you're probably not used to winning, either.
Admittedly, this last step requires a bit of work. Creating an environment in which co-workers can help each other takes come effort, as does providing guidance on how to help co-workers improve. We believe that co-workers can be the best teachers. We also believe that the more you help people, the more it is likely to become a habit. We also believe that the company that has the most outstanding employees has the best chance to win.
Are you ready for something completely different? Like winning? Say 'yes' to both. You wouldn't want to disappoint these guys, would you?
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