How Do You Define Performance Management?

The idea of a results-based work environment, where employees have the flexibility to work in a manner that suits them as long as they produce results (tailgating the work from home debate), leads us to point your attention to the question many do not want to face…as a leader, am I fostering an environment where my employees can be successful in a results-based work environment? Enter: performance management.  

Performance management is a process that’s supposed to ensure everyone in the organization recognizes exactly what it is they are there (and compensated) to do, and to encourage all employees’ individual success. Performance management, confining of defining company needs, job descriptions (or what we now call career defining agreements), goal setting , and the annual performance appraisal, so often falls short of the desired outcome of increased productivity and job satisfaction. Have you ever seen a disconnect between these variables? What is someone paid to do vs. what are they actually doing? What performance is actually being measured and rewarded? Do leaders and employees have a clear understanding of expected expectations? Do they see success in the same way?

What is the foundation of performance management? Success. Success of the employee and success of the company overall. Success in a symbiotic, mutually beneficial employment relationship can generally be defined when considering four things.

#1 Accomplish Outcomes

From the Department Head or Studio Lead to the Office Administrator, every person is accountable for achieving certain and specific business outcomes and results. Too often, successful performance is viewed or defined as having accomplished a certain task or tasks, not as having achieved outcomes. 

Consider this:

• Editing a CAD file or model based on redlines is a task. Making sure every project is carefully detailed and minimizing change orders is an outcome.
• Implementing a new marketing strategy is a task. Gaining a 30% increase in market share as a result of a well-executed marketing strategy is an outcome.
• Load calculations and test fits are tasks.  Creating a winning design that meets your clients needs is an outcome.

Do you reward your staff members to clock their time to accomplish tasks or to achieve results? Understanding the difference is critical to establishing clear expectations of success.

#2 Operational Quality (OQ) 

Every person is functionally accountable for adhering and performing to some level of standard. Standards of operational quality may include a specific design standard, a constructability standard, a code-compliance standard, or some other metric of best practices. ‘Timely and accurate’ is a perfectly acceptable operational standard against which many outcomes should be benchmarked.  Every employee should have a clear understanding of the operational standards within which they’re paid to achieve business results.

#3 Relationship Management

Every position is accountable for some aspect of effective relationship management. All
employees are accountable for being a contributing member of a team, and for developing
positive working relationships within their company. Many roles, especially more senior roles, are also accountable for the development of external relationships with clients, vendors, network nodes, associations, and other important consultants/industry partners. Most position descriptions exclude this very important accountability…yet it is so often the reason someone is considered ‘unsuccessful’ or asked to leave.

#4 Leadership/Citizenship
It is fundamental  to the success of any organization that all employees uphold its mission, values, and guiding principles. Anyone in a leadership position is also accountable for ensuring the development of a high performing team and a positive, safe, and productive work environment. 

Performance management is a process to ensure 1) a successful business, 2) high-achieving, happy employees, 3) overall reward for both organization and employee, and 4) continuous people development to further their career. This is a unique lens to look through. When utilized correctly, it safeguards clarity and consistency throughout every component of the performance management process. Undeniably, when employers embrace and enact these accountabilities, and there is alignment and transparency throughout every step, it creates a win-win strategy.