Overcoming Roadblocks to Performance Management
One of the biggest challenges to any company initiative is getting buy-in from managers and employees who are critical of change. In previous posts, we’ve focused on succession planning and how to bring CEOs, senior managers, and employees on-board. While the main ideas of those posts relate to performance management, changes to performance systems are especially challenging. This is because of resistance to performance management, both from leaders providing feedback and direct reports receiving the ratings.
The challenges of performance evaluation can be so great that industry titans like Adobe and General Electric have eliminated traditional performance reviews altogether. However, effective performance management is not the same as performance appraisal. Rather, performance management focuses on employee development and aligning individual goals with those of the company. Despite its benefits, a move from traditional performance appraisal to performance management can be difficult. Ultimately, having the answers you need to address employee concerns is key to success.
Common Concerns and How to Address Them
In order to win over hearts and minds when implementing performance management, it’s crucial that managers and employees understand why and how it’s being implemented. Below are some of the most common concerns about performance management and tips on how to address them.
Little Value Added
Many managers show resistance to performance management because they believe that performance assessments add little value to the company. Most of the time, they’re right. Managers are often already stretched thin and have multiple priorities vying for their attention. Asking them to spend time filling out annual performance reviews for their employees can feel like creating paperwork for little-to-no benefit. This is especially the case in small companies where managers have many roles and responsibilities.
To address these concerns, be open with information about the differences between the current system and the new approach. Emphasize that a move to performance management from traditional assessments will be beneficial, and that leaders’ feedback for their high-potential direct reports matters. Additionally, stress that their leadership role is the key part of the development pipeline that will add more value to the company.
Lack of Clarity
For both employees and managers, there is often confusion about the purpose of the performance management system. Many such systems lack focus. One set of ratings may be used for promotion decisions, remedial action, and protection against legal challenges. This lack of focus is frustrating to managers because they have to provide feedback to their direct reports that identifies areas for improvement, but doesn’t open them up to reprimands. This can also create anxiety for any employees who can’t focus on their development while believing that negative ratings could affect their advancement in the company.
Successful performance management requires that its main objective be decided early, and that procedures are designed to achieve that objective. To get the support of your workforce, design your performance management system around a main company goal. For example, a company-wide objective to improve succession planning can set up performance management focused on developing employees to eventually take on key roles in the organization.
Unsupportive Work Environment
Most companies have established procedures that managers and employees are used to. So, big changes to company-wide systems, like performance management, can be overwhelming. Consequently, strong structures must be in place to support individuals while they adapt.
Before introducing the new system, encourage communication between those most affected by the change, such as managers and employees, and those leading the initiative, like executives. Communication is always important, but a strong effort to improve it can create more trust in the initiative and its leaders. Another way to lessen resistance to performance management is to provide leaders with the training they need to give feedback that is in line with the objectives of the new system. This shows that the company is willing to invest resources in performance management, and that it cares about the quality of its feedback.
How SIGMA Can Help
At SIGMA, we want to help your company prepare
for the future. Our experienced consultants can help you integrate performance
management into a simple succession planning process. Visit our Launch
Series page to discover how we can deliver your personalized
Succession Plan in just 30 days. We also offer long-term consulting services to
help you navigate on-going succession planning functions, such as performance
management. Contact us for more
information on our succession planning offerings.
 Baer, D. (2014, April 10). Why Adobe abolished their annual performance review and you should, too. Business Insider. Retrieved from http://www.businessinsider.com/adobeabolished-annual-performance-review-2014-4.
 Nisen, M. (2015, August 13). Why GE had to kill its annual performance reviews after more than three decades. Quartz. Retrieved from https://qz.com/428813/ge-performance-review-strategy-shift.
 Society of Human Resource Management (2017). Performance management that makes a difference: An evidence-based approach. Science-to-Practice Series. Retrieved from https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expert-views/Pages/Science-to-Practice.aspx.