Effective Performance Management

Performance management is a critical business process, yet in many companies, it is an ineffective management tool. By striking a balance among committed leadership, effective program design and planned execution, companies can leverage performance management to achieve company goals. Our experience indicates that top-performing companies execute performance management effectively and use it to achieve their strategic objectives and improve operational results.

Effective performance management helps organizations:

  • Target critical talent for development and retention
  • Execute strategy by prioritizing and aligning goals and objectives
  • Improve group and individual performance
  • Make pay decisions based on performance and desired results
  • Identify top performers to develop a succession plan

Symptoms of an ineffective process may include:

  • Irrelevance — does not reflect "how we operate"
  • Narrow focus — only affects pay decisions
  • Resistance — managers hate doing it; employees resist it
  • High effort for low return — a lot of time spent filling out forms
  • An event versus a process — only happens once or twice a year
  • Separation from, or conflict with, other talent management processes

Sibson works with clients to implement critical success factors that ensure effective performance management. The top four are:

  1. Executives model a high performance culture and use the process at the top.
  2. Individual expectations are aligned with the goals and objectives of both the unit and the organization.
  3. Leaders, managers and employees understand the process and their responsibilities.
  4. Communication occurs regularly, and feedback is aligned with rewards and consequences.

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EPM Scorecard

How does your organization's performance management stack up? Wondering how your program ranks versus the criteria needed to ensure success? Find out by using Sibson's Effective Performance Management Scorecard.

Completing the Scorecard will take no more than 5 minutes. The results will help you pinpoint areas of concern within your performance management program and will enable you to have a complimentary discussion of your questions or concerns with one of our performance management experts.

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