Big Idea for 2016: Don’t Ditch the Performance Management Process

When several large, respected companies scrapped their formal performance evaluation processes in 2015, it seemed to signal a seismic shift in talent management. Many people following the HR industry predicted that performance reviews were headed for extinction as companies adopted the “constant feedback” mantra.
But, there is no either-or decision to be made between the traditional review process and thoughtful, real-time feedback. Both formal and informal performance and development assessments are critical to the success of our work force and the attainment of our business goals. They are an investment in our people that – when done consistently – result in high performance and alignment.
The formal performance review, harnessed correctly, remains an asset, because it provides a framework for reflecting on long-term goals and achievements. Employees know where they stand, including what they’re doing right. People love to hear good news and it helps them know what they should do more. A formal review neatly complements the regular conversations we want to see happening between managers and their teams that are often about more immediate, short-term issues.
The hybrid approach we take at BNY Mellon is the outgrowth of several trends that have prompted us to take a hard look at our talent management practices. We know that writing and delivering formal reviews can be a daunting task for many managers as the pace of business accelerates. There is also a growing percentage of the workforce that expects frequent, thoughtful feedback. I like frequent formal and informal feedback too! Leaving feedback to chance and not building up the capability of your managers is a mistake.
We see performance management as a partnership – between our employees and the company, and between each employee and his or her direct manager. It is critical that each of us identify and define our own development goals and path so that our managers can support and assist us. Our managers conduct twice-yearly reviews and also have informal dialogues that take place throughout the year to give and receive feedback and promote ongoing career planning. Through our Talent & Development team, we have invested in innovative tools, processes and learning events for our managers and employees to maximize the return on investment from informal and formal coaching.

Our CEO Gerald Hassell said it best in his recent post, “Gone are the Days of the Traditional Manager”: We are challenging our managers to be coaches. I love the coach analogy for our managers because I played basketball and a number of other sports growing up, and I still remember how effective my coaches were at pushing me to be the best version of me I could be. The essence of coaching is that feedback is delivered frequently. No coach waits to the end of the season to tell the team how they could have advanced the ball or improved their defense.
So what does this mean for managers and all of us as individual employees?

Behaving more like a coach than a traditional manager takes training, practice, and new attitudes. The key is that communication must become a dialogue, not a monologue. This means managers must learn to ask open-ended questions, focus on useful outcomes, and use language that encourages rather than judges team members. It also means knowing the resources available to team members. The best managers spend quality time with their employees.

If you’re a manager, you should set a high standard and model excellent performance every day. Invest in giving your team opportunities to learn. Empower them to raise the bar. Build trust and reward great results. Your team will respect you for it, be inspired by it and work even harder to meet your expectations.
As individuals, we need to take charge of our own development. We should not wait on the sidelines for a manager to set the bar for us. You can and you should set that bar high for yourself.
If you find that you’re not receiving enough feedback, seek it. A CEO I used to work with called me his “how do you like me now” employee because I always wanted feedback. And that does not stop with my manager. I have a couple of friends who I call my “trusted mirrors” who are with me in different types of settings and will share their thoughts on how I am perceived and what I need to manage.
Understanding and then confidently internalizing and responding to feedback is important in navigating your education and your career. Embrace the formal performance review as a chance to revisit, reset, and raise your performance, and open yourself to the ongoing dialogue.

So, don’t blow up your forms, rating scale or process. Simplify your process and integrate it into the business. Invest in making your managers great coaches so you can fully leverage your employees’ strengths and see measurable improvement in performance.