Here are three components to Performance Management that apply at all levels. They are a simple guide and a useful test.
- Clear and agreed EXPECTATIONS. Does everyone know and understand what the desired outcome looks like? Does an employee truly know in specifics what is actually required of the job? Is a clear set of business objectives created and articulated? Are clear metrics in place to determine progress to plan? Success? Failure?
- Regular and honest FEEDBACK. Accountability means "the ability to tell the story." Is every employee, team, business unit head asked on a regular basis how they are doing and what they are doing? Are the metrics applied to them? Is management giving true and timely appraisals of work done (or not done)?
- Appropriate REWARD AND CONSEQUENCES. It has to matter. Paying those who achieve goals and who do well more than those who don't is the purest form of capitalism and is NOT favoritism. Not everyone gets a trophy. There are winners and losers. Performers and non-performers. The simple truth is that some contribute more than others and therefore should receive the greater reward. Let the under-performing, closet socialists complain. Life is not meant to be fair!