How can you stay adaptable in Performance Management?

Studies have shown HUGE gaps between top leadership's vision and what the rank and file's understanding of the vision. The first question is "Are we aiming at the right target?". If the answer is yes, which is rare, then the question becomes, "OK, now how do we actually set about hitting that target?" The great thing about successful organizations like Toyota is that they reward both results and HOW you got those results ("problem-solving"). You may have lackluster results (due to factors out of your control) but if you consistently utilized a problem-solving approach, then you still get some credit. That incentivizes the practice of utilizing problem-solving tools and thinking.

New technologies such as AI are about to dramatically change the way we work. Even the most conservative research studies suggest that more than half of all the current jobs will somehow be affected. Therefore, it is now more than ever when we need to reevaluate wether or not our current system is really assessing the factors that predict outstanding outcomes. Also, new generations (e.g.: GenZ) are joining the workforce community and their perspective about work ethics makes us re-evaluate our systems every year. Our world requires a continuous improvement mindset if you want to remain competitive.

Performance Management, rather than an HR tool focused on individual employee assessment, should first be read as Business Performance Management (BPM), which targets broader organizational performance. BPM plays a strategic role in optimizing business processes and outcomes, offering a more holistic view than traditional HR methods, which overemphasize individual influence on performance and can be rigid and subjective. Dr. Deming's insight that 94% of performance variations are due to the system, not the individual, underscores this. Recognizing BPM's role is vital for understanding performance in driving strategic business goals and adaptability, as it accounts for complex business systems and external factors impacting performance.

Stay adaptable in Performance Management by fostering a culture of continuous feedback, leveraging real-time technology insights, encouraging skill development, and remaining responsive to industry shifts. Keep goals flexible, embrace innovation, and champion continuous improvement to thrive in the evolving landscape. #performancemanagement #adaptability

The first step in staying adaptable is understanding where you currently stand. Regularly assess your performance management system to identify strengths, weaknesses, and areas for improvement. Consider feedback from both employees and managers to gain a holistic perspective. This assessment will serve as the foundation for making informed decisions on necessary adjustments

Rigid performance management systems can hinder adaptability. Embrace agility by creating a framework that accommodates change seamlessly. This involves setting flexible goals, reevaluating performance metrics as business priorities shift, and adjusting expectations in response to dynamic market conditions. Agility ensures that your performance management adapts in real-time to the evolving needs of your organization.

Performance management shouldn't just be about measuring outcomes; it should be about nurturing growth. Create a culture where learning and development are valued, not just for employees but for everyone! During my time at a financial technology company, we implemented a peer-coaching program where employees from different departments could share best practices and learn from each other's experiences. This not only boosted individual performance but also fostered collaboration and a sense of shared purpose. Creating a culture of learning and experimentation where employees feel empowered to take risks and try new things is transforming.

This is spot on. An assessment tool should be dynamic, providing the edit/update capability as business circumstances change. This should not overwrite the prior goals, but should be encouraged where appropriate along the journey to improve the effectiveness of the tool and ultimate communication.

Cultivate a growth mindset within your organizational culture. Encourage employees to see challenges as opportunities for learning and development rather than obstacles. A growth mindset promotes resilience and adaptability, enabling individuals to embrace change and continuously improve their performance. This cultural shift is instrumental in creating an environment where adaptability is not just tolerated but celebrated.

Forget about the old school mindset that states that you always need to be the main character. A great leader is one that not only gives credit to his/her team but also self-acknowledge the fact that without them things just do not happen. Psychology research shows that having faith in your team capabilities boosts their skills and increase the probability of delivering outstanding performance. This phenomenon is known as “Self-fulfilling Prophecy”. Therefore, believe in your team skills, provide them with the necessary tools, create an environment that rewards taking controlled risks and make them think “I can do it”.

"Where there is fear, you will get wrong figures." - Edwards Deming. This is as true as the law of gravity. Psychological safety is easy to talk about, but elusive in practice. Top leadership must believe it and live it. They must also continually be on the lookout for the manager who acts to the contrary. Here's a quick test of safety. How do you feel about the following 3 scenarios in your work place? (1) I have no hesitation telling my boss bad news. (2) If I disagree, I have no problem speaking up. (3) My boss has shared times when he/she has failed and how it helped him/her grow. If you didn't agree with all 3 of those, then safety is missing in your culture, and likely high performance too.

Involving and empowering employees must extend beyond having them set and review their own goals to fostering ownership of their work system and providing the latitude and safety for them to revise that system to create a higher-performing and more adaptive workplace. Fostering ownership and nurturing an environment where striving for systemically better is encouraged and mistakes lead to learning rather than punishment will cultivate psychological safety and allow people to shine.

A successful performance management strategy involves employees as active participants rather than passive recipients. Foster open communication channels and involve employees in goal-setting and performance reviews. Empower them to take ownership of their professional development, encouraging a sense of accountability and adaptability in their roles.

Adaptability is an ongoing process, not a one-time endeavor. Regularly review and refine your performance management processes. Solicit feedback from employees and managers, and use data-driven insights to identify areas for improvement. This continuous improvement mindset ensures that your performance management system evolves alongside the changing needs of your organization.

In my experience, staying adaptable in performance management involves ditching rigid annual reviews. Embrace continuous feedback, focus on real-time adjustments, and prioritize outcomes over processes. Agility beats bureaucracy in motivating employee growth and organizational success.

The key to staying adaptable in performance management isn't in chasing every trend. It's about mastering the fundamentals. Build a rock-solid foundation, then selectively integrate innovations. Adaptability isn't a race; it's a strategic marathon.

The above topics of fostering agility, fostering a growth mindset, engaging your employees, and instilling continual improvement practices can all help drive adaptive performance management. Considering the business performance context, I find it helpful to consider three views: 1. The external perspective of "How is the organization improving value delivery and benefits to its customers and other stakeholders?". 2. How is the organization investing in internal capabilities & enablers (such as people and a positive workplace culture) to drive adaptability and improvement? 3. As a leader, how should I tailor my engagement with the people and the organizational system to maximize opportunities to grow and improve?

I would counter an argument against performance management and for performance enablement. You may view this as a small semantic difference, but empowering performance rather than managing it is a totally difficult skill set which, when done consistently with two-way meaningful conversation with colleagues throughout the year, can contribute to them feeling valued and like what they do within their role is valuable; two things that every single one of us needs in our roles.