Managing Performance: Have things really changed since I wrote that article on Performance Management?

I was asked by the Debbie Carter, editor of Training Journal, to review an article I had written in the 1990's. She asked several business writers to assess how business practise had evolved since their publication.

Excellence through People

My article was based on a major cultural change drive through a Financial Services provider in Edinburgh.

The new culture was based improving service excellence through managing performance. The real issue in the 90's was managing talent.  Clearly here we found performance was an problem holding back business improvement.  We found that measuring varied widely across the group functions.  Dealing with poor performance or rather not dealing with uit was a major issue.

Our research suggested that between 10-25% percentage of staff from this 1,000+ person business were operating at marginal levels.  No action was being taken to 'manage people out' or to coach for 'improved performance'. 

To make matters worse we found that in this poorly performing business only five people were on PIP's - which told us that dealing with poor performance was an issue. 

Were things that bad?

many companies were not lean and mean.  That was a revolution waiting to happen.  It still is in some businesses.  Has my thinking changed?  Has performance improvement been implemented? Do we still fail to condone performance below the norm?  Of course it depends on the business.

Performance Improvement is still a key issue in 2008

Revisiting the old article (which you can access at the end of this piece)  I thought about how the majority of businesses had improved in creating the culture where people can contribute and give their best.

I made the very confident assertion in the article that, generally speaking, managing poor performance (out of the business) was a key priority for many organisations. I have not changed that view!

I no longer believe that '25%' is at the top end but I do believe that it ranges between 5-10%, which is still too high. It would be too high for my clients.  It has to be dealt with soon otherwise it will undermine behavioural team norms and your talent will vacate to a culture where performance levels are clearly deliniated and consequently rewarded.

Issues & People now are Managed out of Businesses

Some issues have now been "managed out" of the average organisation but there are still issues that need to be resolved.

It requires simple leverage of of performance standards that can drive overall productivity. The secret is change behaviours.  And if you want more on that phone me.

In our current 'talking our way into a recession' mode - we need to realise that profitability is what will keep us competitive when others are losing business.  We have to maintain and build even stronger links with our existing customers and win new ones and retain their loyalty.

"Those goals can only be achieved by recruiting and retaining the best.  Business improvement is based on our people who search for improvement in quality, cycle-time reduction, cost containment, a positive and measured return on human capital resulting in fantastic customer service and profitability."

My good friend and colleague Nick Price from Bright Purple Resourcing has contributed his thoughts in the above paragraph.

Management get the Staff They Deserve

If you have lousy managers, you develop poor practices and standards that fall well below average. Delivering at this standard spreads and becomes the norm.  People look about them and say "If it's okay to deliver at that level it's fine by me".

Introduce a charsimatic and energised focused manager who is good with people and watch performance rocket.  In other words "It's not the people - it's how they are led, stupid".

Great people and teams usually have fantastic managers and leaders. Amazing how one breeds  the other.

A Cold Brutal Test

Are these thoughts accurate or a phalacy?  Take this ' brutal but true test'.

Just suppose for a second that the business in which you work currently belonged to you. YThat's right you take the personal risk and cover the salaries of the people. Now think about this carefully. Their actual individual and team performance influences your prosperity personally. Think seriously - this is real - now answer these questions.

• What percentage of the people would you retain?
• What number would you gently encourage to work for your competition? 
• What percentage would you place on performance improvement projects?

Honest answers to serious questions reinforce the reality that too many businesses have not confronted the core issues.

Customer Relations is a Reflection of Human Relations

If you improve the quality of the business through your people internally you will create a fantastic climate of powerful and purposeful 'human relations,' which will be mirrored in how you do business with your customer.

Companies or organisations with a poor reputation for customer relations will find several problems if they cast their eyes internally to their own culture.

I still think the basic tenets of the original article are correct - although many more organisations are tackling the issue. Nevertheless, the problem is still around.

Better a poor Perfomer in the role rather than non one at all!

An operations manager was talking with and me about poor performance and the lack of talent in the market. She said simply, "It's better to have someone doing the job poorly than no one doing the job at all!

I can understand her viewpoint, but what happens to performance standards and team norms?

And focusing purely on the defaulters does nothing for maintaining high standards and service.

Alpha Performers or Question Marks

Managing performance is still an issue for business. People don't like to give bad news, and assertiveness is still an issue which needs to become part of a culture. We are in business to achieve goals through people.

The Secret to Managing Performance; Talent Management

Highly successful companies would never commit to a policy of employing and retaining below standard deliverers or do they?

And that's where the secret lies: in choosing, retaining and, through talent management, coaching people beyond their current dreams and abilities.

It is only by supporting others to move beyond their present performance

that people can really actualise their potential.

Given the choice, would you rather go through the Jungle with the high flying 'Alpha Performers or the 'Question Marks?' I know where my vote goes.

And, finally it's great looking back at interventions and know with certainty that all those efforts did make a difference to the performance of the

businesses.

The following two articles are good in expanding these issues.  !he third is an old pdf of the original article which may amuse.

Articles on Performance Management

Leading & Motivating: The Performance Grid››

Cioaching Performance Most Recent››

Original Article mentioned Above››