Employee Evaluations Must Change to Encourage Honest Feedback

Performance Management (PM) is currently a hot topic among business leaders and human resource professionals, with many voices challenging the value being delivered by todays traditional PM programs.

Whats changed? Lots.

The working world has experienced dramatic changes driven by globalization and shifts in the expectations of todays workforce. New technologies have been introduced that were not available during the design of most PM programs operating today. Additionally, new research have debunked several of the common foundational assumptions of performance programs. Collectively, these changes have raised questions about the role of PM, its objectives, design, administration and effectiveness.

What do we know?

Current thinking leads us to three conclusions: 1.) Performance Management processes, structures and activities cannot be directly correlated to business outcomes; 2.) Many HR professionals are dissatisfied with their current PM systems; 3.) Employees perceive PM systems to be more punitive than productive

Whats wrong with PM?

Thought leaders in the fields of business, management, human performance technology and sociology are some of the strongest critics of traditional performance management. Their concerns are summarized in the following brief assessments.

1. Traditional models impede ongoing feedback and limit honest dialogue.
2. Both reviewers and those reviewed believe the objective is to seek the negative.
3. There is no solid evidence that the process motivates people.
4. The process is focused on the individual, rather than the system organization.
5. Fairness and standardization in ratings or the judgment of performance cannot be achieved.
6. The activity of comparing people erodes attempts to create a collaborative culture.
7. The output of the process is unreliable for making talent decisions.
8. Pay-for-performance does not deliver improved performance.

What are the alternatives?

We we find two approaches being put forward to address the recognized weaknesses of traditional Performance Management: fix it; or abandon and rethink.

Fix It

While the advice is broad, three key themes emerge as the most consistent areas for improvement.

1. Goal-Setting
   1. Improve the alignment of Organizational and Department Goals (cascading goals).
   2. Increase accountability for results in the goal setting process (measurable).
2. Feedback
   1. Build on-going feedback into the culture.
3. Process and Content
   1. Clarify the process for all.

Abandon and Rethink

Unbundle the activities traditionally associated with performance management and treat them as separate and distinct programs. Create a new cultural model that would be described by words such as autonomy, empowerment, and agility.

Now what?

Now is the time to engage in meaningful dialogue. It is time to open the door to the possibilities of fully aligning the intent of performance management with its outcomes. It is the time to ask questions, get answers, and take action. It is time to review.

M. Tamra Chandler

Tamra is the CEO and a founding partner of PeopleFirm LLC, a strategy and implementation consultancy located in Seattle, Washington. In her 20-year career, Tamra has developed a track record of managing complex business transformation projects that require a blend of strategic, technical, and change management skills. Prior to founding PeopleFirm, Tamra was the Managing Vice President of People and Global Solutions for Hitachi Consulting and one of a four-person executive team with full accountability for the strategy and performance of the global consulting practice. As an Arthur Andersen alumna, she was the partner in charge of the Pacific Northwest (PNW) Consulting practice until Andersens closure in 2002.

Her work with Hitachiincluding orchestrating the integration of the firms six heritage companies into a cohesive delivery organizationearned her recognition as one of the Top 25 Consultants for 2007 by Consulting Magazine.

PeopleFirm was recently recognized as #9 Best Small Firm to Work For by Consulting Magazine and #3 of Top 100 Fastest Growing Private Companies by Puget Sound Business Journal.