Performance Management System is the glue that bonds employee performance to a company’s mission. When fully leveraged, it aligns employees at every level with the organization’s key business goals.

Just how should a Performance Management System used?  Let’s break down a company’s annual cycle into three major sections that together provide the framework to gain employee commitment, align them with the company mission, and measure both individual and bottom-line results.

STEP 1: Setting Expectations

  • CEO and/or board finalizes the strategic direction and goals for the coming year
  • CEO communicates the organizational goals to all direct reports
  • CEO meets one-on-one with all direct reports to reach agreement on their department or division goals and priorities for the coming year
  • Division or department manager meets one-on-one with all direct reports
  • Front line manager meets with all direct reports to discuss and finalize their individual goals for the coming year

STEP 2: Coaching and Feedback

  • Conduct a mid-year review after six months with employees
  • Review performance to make sure goals are being met
  • Offer coaching and feedback in a timely manner
  • Make sure feedback and coaching are effective

STEP 3: Year-End Review

  • Providing regular coaching and throughout the year will avoid surprising feedback
  • It’s critical that team’s performance mirrors individuals
  • Keep Performance Management simple so its effective
  • Long-term viability and profitably will be your results

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