Performance management: choosing what suits your organization best

 Annet Weidema is a recruitment consultant at Rvdb and a specialist in strategic HR topics. She regularly enters into discussions with organizations about Performance Management and has implemented a new system for performance management at several organizations. She is interviewed by colleague  Carlo Velthuijs,  interim professional at Rvdb. 

 

There are many trends in performance management: abolishing appraisal interviews, only using 360 feedback, digitizing everything, or just working with coaches instead of managers. How do you view these trends and what would you advise organizations about this? 

 We are often asked whether we want to introduce aspects of such modern performance management, such as 360-degree feedback. It is only important to realize that this is a tool. For example, I really see 360-degree feedback as an instrument. It is – just like a lot of other hip tools & trends in performance management land – a means and not an end in itself. You can then think: why should we choose this remedy? And when do we choose other means; what actually helps us best? Something may be a popular method, such as killing assessment interviews, but for the same money, something else works better. A trendy tool is tempting,

 

What you can do best, in our view, is actually very simple: apply what is best for your company. Think about the purpose of Performance Management for you: why are you using it? What do you want to get out of it, what do you want to achieve with it? If you have that in mind, it is also easier to think of which means and methods are appropriate. You don't just choose a process or tool because it's hip, but because it contributes to the higher goal of your Performance Management." 

 

Do organizations have a clear goal in Performance Management? 

 Many organizations do 'something' with performance management and there is always, consciously or unconsciously, an assumption behind it. That is also logical: why else would you start as a company if it doesn't yield anything for you? It takes a lot of time and effort, and then it's nice to know with what added value you do that, and not just 'because vacatures hr adviseur has to do it. It is true that the underlying assumption, the goal of Performance Management, is no longer always clear. Over time, the required follow-up, the forms, or the deadlines of Performance Management can take precedence over the 'why'. One then falls back on the annual recurring pattern, which wears out, and in the end, it can feel as if you as an organization are playing this tune because this is how it always goes. It is great if organizations can use Performance Management in a targeted manner so that it helps them further. Performance Management has a lot to offer."

 

What exactly do you mean by that? What could you achieve with it? 

"Applied well, it can yield a lot of profit for your organization: it can greatly increase the motivation and involvement of employees and can ensure the development of talents and individuals. It can also strengthen the organizational structure or achieve organizational growth, facilitate self-management or increase ownership among employees. But then you have to know how to use it, and many organizations do not have that clear in mind. To help them with this, we have mapped out different streams within Performance Management. These streams each represent a different goal that you can have in hr interim. We also see that the currents correspond to different types of organizational DNA. For each movement, we show how the associated goal can be successfully achieved. We show which tools and which process fits best, and also how other organizations have implemented a certain flow in practice. Then you see that some movements are indeed characterized by elements that are currently trending (such as no longer conducting assessment interviews), but that is certainly not always the case. Insight into these different streams can be a good tool to consciously choose what you as an organization would like to stand for and which goals you would like to achieve with Performance Management. Instead of choosing separate elements, you can adopt a movement to a certain extent, in line with your organizational objectives and DNA. It is then a lot easier to set up this process in your own company, including the choice of instruments, since you work from a well-considered consideration for the intended purpose of this process." this allows you to adopt a movement to a certain extent, in line with your organizational objectives and DNA. It is then a lot easier to set up this process in your own company, including the choice of instruments, since you work from a well-considered consideration for the intended purpose of this process." this allows you to adopt a movement to a certain extent, in line with your organizational objectives and DNA. It is then a lot easier to set up this process in your own company, including the choice of instruments, since you work from a well-considered consideration for the intended purpose of this process."  

 

So what are those currents that distinguish you? 

" The first movement we identified is the most classical approach. Performance Management is used as a management tool in the organization. The goal is to keep control over people and costs within the company and to be able to make future predictions. In order to achieve this, this movement mainly looks back at the performance of employees in the past period. This is based on the assumption that behavior is shown in the past, and with it, success or failure offers a good guarantee for the future. In organizations that like to apply this trend, they have a clear idea of ​​what they now expect from each position. They assume that those expectations, i.e. the tasks and responsibilities of each role, will remain the same for the foreseeable future. Often it concerns more hierarchical organizations.  

 

In the second movement, the focus gradually shifts away from functioning, and soft skills & reflection gain ground. It is not only about looking back at the past period, but also about looking ahead. In this way, organizations that use this approach do not only use interim professional as a management tool but also as an incentive for employee development. You can see that difference, especially in the mid-year conversation. This is not an interim evaluation, but a moment to zoom in on development wishes and opportunities. One of the advantages is that career paths are more in line with the development of employees. We see this movement as a hybrid between the classical and the third movement.  

 

In this third movement, development is completely central. Organizations that focus on this movement do not use Performance Management as a management tool at all, their goal is very different. On the one hand, they want to keep employee satisfaction high, on the other they want to be or become agile as a company. The prevailing assumption in this movement is that the future is unpredictable. In order to be able to respond to this possibly rapidly changing future, it is important that employees develop strongly and are reflective so that the organization is too. That is why career paths are dynamic, just like the interview cycle. Sounds great, but be aware that this requires a very different approach from leadership in the organization. A manager will not only have to be able to direct but also to coach.  

 

Finally, a movement arose from an advance of self management. Performance Management is used in this to be able to bear joint responsibility for the organization. To achieve this, a lot of work is done with feedback and reflection, conversations are easily accessible and with colleagues. Traditional hierarchy no longer exists in this type of organization and instead, natural hierarchy is used with regard to development. This means that there is no 'up or out policy (which you do see in the more classical movement) and development here is not based on raising your weaknesses but on exploiting your strengths. Based on a natural hierarchy, there is mainly attention here for what you have a talent for, and you can specialize further on that.  

 

We, therefore, see four different movements: classical, hybrid, modern, and self-directed. We also consciously call them movements: they are not fixed boxes, and the different categories are not at odds with each other. The word 'flow' already implies that there can be overlap and that the elements are not cast in concrete either. It keeps moving. The descriptions I give are also not outlined in black: the main characteristics described give you a good idea of ​​the underlying idea of ​​each movement, but this is not exclusive. There are many more features, and the great thing is that combinations can also be made in between. There are a lot of flavors in between." 

The trends you outline seem to run from traditional to modern Performance Management. You hear and see a lot about those newer forms. Do you think all organizations should go that way? 

"No, not at all. Whichever movement an organization ultimately chooses: it is important to realize that one is not better than the other. If the trend you apply or would like to apply does not happen to flourish most by abolishing assessment interviews or applying 360-degree feedback, then that is not wrong at all. It is no worse than certain characteristics of other currents; it's just less hip. It is true that certain ways of filling in an instrument have proven to be more successful than other ways. For example about feedback: if you consciously choose to be a learning, self-reflective organization, 360 degrees feedback works better than top-down feedback from manager to employee. That's why something like this is more popular. 

 

It is important as an organization to choose a movement that best matches your organization's DNA and the goals you have in mind. Above all, it is important to be consistent: uniformly apply what works best for you, and not elevate an entirely different means, which happens to be popular now, into an end in itself. We therefore always assume best-fit and not best-practice. It doesn't work everywhere to implement the most modern or hip instruments, the important thing is to think about it consciously and then choose." 

 

What impact do you think remote working has on Performance Management?

Our tip for managers who work in a company with the classic flow is to shift the management to the front. In this day and age, it is more difficult to look back at performance than to clearly state in advance what expectations you have of someone. 

 

In addition to the classic flow, there are of course many managers who work in an organization who apply the hybrid or modern flow. And although they are more used to pre-tuning and reflecting, they don't have it easy either. They often use Performance Management to keep employee satisfaction high, and that turns out to be more complicated in a world of distance and digital meetings. In addition, their assumption that the future is uncertain has become extremely true. It also requires a lot of adaptability from them to respond to current times and the (change in) needs of employees. Fortunately, they are used to dynamically deploying Performance Management conversations and the manager already knows the role of coaching manager. 

 

In general, you see that employees struggle with working in times of Corona: the line between private and work becomes blurred, uncertainties about the future arise, parents have to combine caring tasks with work and single people can feel very lonely. It seems more and more normal that someone is down for a while. All the more important are the Performance Management conversations that many organizations have today! It is precisely at this time that continuous dialogue is important. So do not stick to the usual formats for performance and assessment interviews, but check in more regularly and continue to discuss commitment and performance on an ongoing basis. And when the annual appraisal interview comes around, use this moment as a manager to expand the conversation. Inquire more deeply about how someone is doing and how they are holding up. This will require some extra time and attention, but it will be an investment that will pay off. And as a manager, you will see that it also becomes easier: taking on your role as a coaching manager becomes more and more natural.

 

Fortunately, we generally see that employees and managers are resilient and many assessment or development interviews can be conducted virtually. Colleagues value connection with each other and many companies know how to come up with creative solutions to maintain the connection with their employees."

 

Do you also want to think about Performance Management in your organization?hr vacatures from Rvdb can offer you the right expertise and capacity for this. Check out our website or contact Nienke Tolboom to exchange ideas. Contact:  n.tolboom@rvdb.nl  – 06 46 83 35 75