I was recently facilitating a workshop for our Managers on building the capability to provide effective performance feedback. The question I posed was simple: “Who do you think is more under pressure during the annual performance management process—the employee or the manager?” The unequivocal response was – the manager.
Performance management has long been perceived as the elephant in the room—the dreaded annual exercise that evokes anxiety and apprehension among employees and managers alike. The process often feels more stressful than empowering.
However, shifting this narrative is essential for unlocking the true potential of employees and driving organizational success. More than a process issue, this is a culture issue, and we can transform performance management into a shared journey of success.
The leadership team of the organisation holds the key to revolutionizing performance management by adopting a human-centric approach, leveraging technology, and cultivating a culture of continuous improvement. Here is how we can rethink it:
Redefining Performance Management
One of the primary reasons performance management is dreaded is the over emphasis on annual reviews. These reviews are often retrospective, focusing on what went wrong rather than how to improve moving forward. To break this cycle, we need to reposition performance management as performance partnership.
Performance management should be an ongoing conversation—a dialogue rather than a monologue. While managers should regularly check in with employees, employees should also be encouraged to reach out to their managers for constructive feedback, celebrating wins, and aligning on the path forward. This approach shifts the focus from identifying shortcomings to enabling growth and engagement.
Human-Centric Approach: Understanding the “Human”
Performance partnership is not about ticking boxes; it should be about understanding the “why” behind each employee’s actions and outcomes. Managers need to know their teams beyond job roles—their motivations, career aspirations, and obstacles they face.
The underlying muscle for creating a partnership experience is empathy. Empathy has the power to eliminate fear and bring out the best in people.
We must remember that the person in front is first a “human.” The reality is that the person in front is never the problem. It is the unresolved issue in between which is the problem.
Technology as an Enabler
Technology serves as a powerful enabler of this process, making feedback real-time and engaging while providing valuable analytics and insights. These insights empower managers to make progressive decisions and drive meaningful change.
Active Listening and Focusing on Strengths
As Scott Keller and Mary Meaney write, “People aren’t against being evaluated; they want to know where they stand. They just want the process to be fair.” This reinforces the importance of transparent and equitable systems that foster trust and engagement.
This environment develops over time when managers are trained to be coaches. The power of conversations is the lifeblood of performance partnership. The very reason why managers feel pressure during annual reviews is due to insufficient trust-building, inadequate preparation, and lack of investment in the process. When managers realize that the best outcomes emerge from active listening, half the issues are resolved.
Following Keller’s insight, managers should strive to be “fair” rather than “popular.” Additionally, optimal results occur when both parties recognize and leverage the employee’s strengths rather than fixating on weaknesses.
Successful sports teams comprise players with varied strengths that collectively create a winning combination. During training sessions, I emphasize that the performance management process is merely the body—it is the soul that flourishes through engaging, meaningful conversations that leave lasting impacts
Align with Vision and Purpose
It is extremely important for employees to understand how their contributions impact the organization’s success. This requires clear communication of the company’s “big picture”, helping managers develop a sense of ownership and create a value-generating organization.
We should encourage managers to look beyond sales figures and production targets. How effectively do employees collaborate? Are they innovating and contributing fresh ideas? By recognizing these intangible contributions, performance management becomes a more comprehensive and meaningful process.
Embrace Performance Partnership as a Path to Growth
The shift from Performance Management to Performance Partnership is not very difficult. Once embedded in the organization’s DNA with leadership serving as role models, positive change becomes inevitable.
Performance partnership can be a catalyst for transformation, offering us the choice to embrace it as a journey of growth rather than enduring it as a burdensome task.
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