Blog Performance Management Mechanisms

Performance Management Mechanisms

Large transformations often require a mindset shift and cultural revolution. ‘Old school’ values like efficiency and cost reduction need to be supplemented with ‘modern’ ideals like ownership, customer value and lifelong learning.

Most organisations rely on Change Management tracks to attain their cultural goals. However, Performance Management and remuneration also hold powerful leveraging mechanisms. Let us explore some of the practices that have a tangible impact.

Authors: Laurence Jourdain, Jens Desmet & Sonja Noben

Continuous feedback

Continuous improvement can only be obtained in an open and transparent feedback culture. Without feedback, there can simply be no learning. Therefore, the low-frequency yearly appraisals need to make room for continuous feedback between colleagues and peers.

Traditional leaders need to adapt their feedback skills. They have to leave room for failure, accommodate autonomy and act as a feedback role-model.

360° reviews

360° reviews are an ideal tool for Performance Management input. This is especially true when all stakeholders are involved and there is an embedded feedback culture. Otherwise, people tend to remain neutral on improvement points which makes 360° reviews ‘empty’.

Make sure 360° reviews are balanced. People should hear both what is appreciated about them and what their improvement points are. As it ensures active listening, always let the feedback receiver repeat what they just heard in their own words.

The Dreyfus Model

The Dreyfus model for skill acquisition is a convenient skill classification and level-assessment tool. It can be used for different skills, especially in the context of developing your role mastery through formal training and real-life practicing.

  1. Novice
  2. Advanced Beginner
  3. Competent
  4. Proficient
  5. Expert

In terms of job promotion or career advancement, the Dreyfus model really shines. Candidates who feel ready to rise in the Dreyfus classification are “judged” by the people already at that level. This requires no classic management intervention.

Toxicity criteria

As a transforming organisation, it is critical to understand the sensitivity of toxic staff. Their impact on mindset, productivity, employee satisfaction and many other important aspects is way too high to accept.This is true at any level: managers or not.

More to this, it will require accepting saying goodbye to knowledgeable people due to their higher negative behaviour.

A behavior criterion in performance, with clear commitment to act it will be valuable but uncomfortable. DigitalScaler Logo White Laurence Jourdain

Objectives and variable remuneration

Having the right objectives that contribute to the company strategy and purpose is crucial but difficult to achieve. Adapt existing variable bonus pay-out to the organizational shift you want to achieve, like team collaboration or Agile behavior.

Further on, it is crucial to see objectives and teams as a broader system including external partners. As a result, adapting their contractual objectives to an incentive on the team’s / organisation’s objectives will be an accelerating factor. Consulting experts like DigitalScaler will help you find the right balance and progressive steps towards a desired sta

Discover More