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 had asked myself and several other 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 on improving service excellence through managing performance. The real issue in the 90's was managing talent.  We found performance was a problem holding back business improvement.  We found that measuring and evaluating performance varied widely across the group functions.  Not dealing with it was a major issue.

Our research suggested that between 10-25% percentage of staff in different units (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, that is 0.5% of staff, were on PIP's (Performance Improvement Plans).  It was clear 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.  As was the case for this organisation - it still is in some businesses.  We dealt with the key issues and introduced a Leadership programme, 360 degree assessment and a new appraisal system.  But just thinking have things changed in the average business.

Performance Improvement is still a key issue in today

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.  Worse still, your talented 'high flyers' 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. 

In trying to shape a recovery for our businesses - we need to realise that profitability is what will keep us competitive.  We have to maintain and build even stronger links with our existing customers and win new ones and retain their loyalty.  That can only be achieved through harnessing the capabilities of our people

"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 charismatic and focused management style which energises people and watch performance rocket.  In other words "It's not the people - it's how they are led".

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

Take this ' brutal but true test'.

Just suppose for a second that the business in which you work currently belonged to you. That's right, you take the personal risk by underwriting the salaries of the staff. Now think about this carefully. Their individual and team performance will influence your personal prosperity. Think seriously - now answer these questions.

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

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

Customer Relations is a Reflection of Human Relations

If you improve the quality of the business through your people 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 in 'performance management' if they cast their eyes internally and self assess.

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 if that culture prevails?   And focusing purely on the 'poor performers' does nothing for maintaining high standards and service.

The Secret to Managing Performance; Talent Management

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.

The following two articles are good in expanding these issues.  The 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››