Hugh Margesson discusses the importance of managing performance effectively to achieve more in your business with fewer staff.
When profits or budgets are under pressure, you need your people to be motivated and productive and to understand how their hard work helps your business to survive and thrive. But experience tells us that raising the performance bar can be challenging, particularly if you've already been through a cost-cutting exercise. Here are some ideas to help you get it right.
- Be clear about what you expect in terms of output as well as
input. These expectations may be performance standards, which are
likely to stay the same throughout the year, or objectives which
have specific deliverables attached.
- Agree with each person exactly what is required of them, as
well as how you will measure their performance. If this involves
big changes to standards or targets, explain the context to the
employee and offer some practical support. Remember that an
impossible target will simply be demotivating.
- Monitor performance regularly and discuss this with each
employee. You can use a range of methods including simply observing
their work, informal discussions, team meetings and third-party
feedback (e.g. from customers or other managers and team leaders in
your organisation).
- Make your performance reviews meaningful. It's better to
have short, more frequent face-to-face discussions about
performance rather than relying on an annual or half yearly formal
review process. Regular one-to-ones allow you to provide feedback
to employees immediately – recognising good work,
providing guidance or challenging under-performance.
- Make sure that your managers and supervisors understand the importance of good performance management, and don't forget to check that they have the skills and confidence to do this well.
So how are you managing performance at the moment? Are your systems fit for purpose in a turbulent economy? Do your managers have the skills and confidence to get the best from your people? If not, now is the time to plan for better performance management in 2010.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
