On May 7, I will be presenting a webinar with Saba on a new approach to performance management that delivers on business results. During this session, we will explore the key drivers for investing in performance management and how organizations that commit to transforming traditional performance management practices are driving business outcomes.
The business imperative for performance management is undeniable, yet after years in place and stacks of research, organizations everywhere still seem disenchanted with the effectiveness of their approach to performance management.
In Brandon Hall Group’s latest Performance Management Study, the majority of organizations reported that improving overall business performance is a critical outcome of their performance management. To that point, 88% have a performance management strategy, yet, unfortunately, 71% say their current approach to performance management needs improvement, and more likely total reinvention.
There is at least one reason shaping the business case for investment in performance management reinvention – one very compelling reason: better business results.
In our research, the small percentage of organizations that had re-invented their approach to performance management had the following results:
- Revenue increased by 1% to 20% or more
- Engagement increased by 1% to 20% or more
- Voluntary turnover decreased by 1% or more.
After half a century practicing various forms of PM, a few high-performance organizations are lighting the way to how to manage performance. Success hinges on practices and technology that focus on development and coaching.
While talent management budgets are expected to remain relatively flat in the area of performance management, we do know that the best organizations will revisit their talent budgets and find ways to accommodate a facelift to their performance management. At a minimum, these organizations will be coaching their managers to be more effective development coaches, leveraging technology to ensure better goal alignment and data integration among all talent processes, and revisiting any real need for rating scales and a “rank and stack” approach.
These solutions will ignite the transformation of performance management from an annual performance appraisal to evaluate last year’s performance to a continuous process of talent development that makes a quantifiable business difference.
A few of the topics we plan to discuss about performance management in the webinar include:
- The Context: What it is and isn’t? What its challenges are and why we do it? Is what we do working?
- The Research: Why is PM faltering and how do we fix it? What are leading practices, and how do they look different from traditional practices? What difference will it really make if we transform to leading practice? How do we sustain the transformation?
- The Stories: How are organizations leveraging leading practices to accelerate business results and optimize the productivity (and retention) of top talent?
See you next month!
Until next time….
Laci Loew, VP and Principal Analyst,
Talent Management, Brandon Hall Group