Optimizing Performance Management: A Few Practical Tools

The concept of performance is highly complex because it is subject to many variables, within and outside of individual control. While it is a commonly pursued goal by many organizations, leaders don’t always know or agree on what to measure, and even more challenging, how to measure performance.

Research tells us that multiple factors affect human performance. When we focus on the individual performer, performance varies depending on the individual’s job competencies, intrinsic motivation, external incentives, and the work environment, among other things.

When we look at individual performance in the team context, additional elements need to be factored in, such as team members’ characteristics (age, education, gender, experience, personality, etc.) and team functioning (for example, interpersonal relationships). To add another layer of challenge are the different personalities of the supervisor (the evaluator) and the subordinate (the evaluatee), the dynamic relations between them, and the timing of the evaluation.

All these complexities suggest there is no one-size-fits-all approach to managing and/or assessing individual performance. In the third part of MSCI’s Talent Management webinar series, which is available here and was hosted by Monique Combs on October 26, 2023, I discussed the science of performance and the various influences on individual performance.

I also provided a few practical tools that I consider simple but powerful:

• The Power of Engagement — Who you invite to the performance management planning table matters. To gain their initial buy-in and sustainable support, and ensure effective execution, make sure you engage evaluators (supervisors and managers) and performers (job holders), in addition to the HR team.
• The Power of Questioning — Apply the “Five Why’s” technique to help you think through different aspects of performance. Here are five questions for illustration: Why is there a performance discrepancy? Why is the discrepancy worth pursuing? Why is training the right solution? Why it necessary to specify consequences for low performance? And, why is it important to recognize good work?
• The Power of Goal-Setting — Apply the SMART principles to develop effective performance goals. Is your goal Specific, Measurable, Attainable, Relevant, and Time-bound? SMART goals lay a solid foundation for success later.
• The Power of Assessment — What tools do you use for performance assessment? How do you categorize your employees based on evaluation results? The “Nine-Box” is an excellent tool for taking your performance review to the next level. By ranking each employee’s past/current performance and future potential on three levels (low, moderate, or high), this tool will enable you to differentiate your employees into nine different categories (boxes), ranging from low-performance/low-potential all the way to high-performance/high-potential.
• The Power of Feedback — Regardless of your position in your company, the evaluator or the evaluatee, use what I call MOSTC to gauge the quality of the feedback you provide or receive. If the feedback Multidimensional? Do you provide/receive Ongoing feedback? Is the feedback Specific to the job? Is the feedback delivered in a Timely manner? Finally, is the feedback Constructive?
• The Power of Developmental Planning — Effective performance evaluation most likely generates meaningful results that can be used to identify opportunities for performance enhancement. Based on the evaluation, what are the areas for future improvement or development? What impediments may limit current or future performance? What actions can be taken to remove these barriers? A well-designed developmental plan will address these questions.
• The Power of Recognition — The findings from a 2022 study by Gallup and Workhuman show that well recognized employees are five times more likely to feel connected to their organizational culture; four times more likely to be engaged in their work; five times more likely to see a growth path within their organization; and four times more likely to recommend their organization to others. So, make a concerted effort to recognize your colleagues and subordinates in genuine, timely, and meaningful ways!

These simple tools, when used intentionally and consistently, will help your company move the needle on employee performance. I encourage you to apply them in your workplace.

Remember: Managing performance is about managing people. When you make investments in people and connect with them, they will be inclined to perform better in return.

Jia Wang is a professor in the Department of Educational Administration and Human Resource Development at Texas A&M University. Her research focuses on international and national human resource development, organization crisis management, and learning within organizations.