In today's rapidly changing business environment, enterprises are looking for a more flexible, agile and timely feedback way of business operation, which puts forward the same requirements for performance management systems. Based on the above background, the third Performance Management Research report was jointly organized by Beisen and Wisdom Sharing recently, aiming at helping enterprises to recognize agile performance management and providing suggestions and case practices on performance agility.
Since the second half of 2018, a large number of companies have begun to test the waters of performance management change. Baidu nearly 50,000 employees top-down implementation of OKR; Huawei is also piloting OKR in the R&D system staff, breaking the PBC model for many years; What's more, Internet enterprises in East China's Jiangsu and Zhejiang regions are influenced by Alibaba's dual-track performance appraisal system and begin "Ali-like assessment" in combination with their own business development and management requirements... In view of the goal setting, assessment and evaluation methods, a variety of fancy games emerge in an endless stream, enterprise reform is very happy, but how the effect, whether really achieved the goal of enterprise performance reform, also "just like drinking water, cold and warm know". Thus, the era of Agile Performance 3.0 has arrived, and continuous change is needed to build outstanding organizations.
Back to the roots, what is the purpose of performance management?
As we all know, performance management is the implementation of corporate strategy, so that all staff can coordinate, ensure output and achieve organizational goals. At the same time, it is to recognize and motivate the majority of employees, to promote the growth and development of employees, but also to establish a relationship with employees. Jack Welch believes that the ultimate goal of performance management is not just to make employees achieve the expected performance, but to make them willing to make efforts beyond their duties.
From this point of view, no matter how performance management changes and what evaluation methods it adopts, it must ultimately serve the decomposition of corporate strategy, the achievement of organizational goals, the stimulation of employees' subjective initiative, the promotion of employees' growth, and the ultimate success of both enterprises and employees. In 2017-2018 Chinese Enterprise Performance Management Maturity Survey Report, Beisen conducted a survey on performance management maturity of hundreds of Chinese enterprises, and found that 66% of the main challenges faced by enterprise performance management come from the middle and grass-roots management ability and the recognition of performance, 52% from the disconnection between daily work and main objectives. 48% comes from the inability to effectively motivate employees and promote their development, 44% comes from the inability to effectively decompose corporate strategic goals, and 36% comes from shaping an open, challenging and innovative performance culture.
It can be seen that enterprises are most looking forward to changes in the analysis and alignment of organizational goals, the process management of the implementation of goals, and the continuous feedback between employees and managers. Instead of expecting a one-size-fits-all approach to all problems, we need to restructure our performance management system with an integrated mindset. Each enterprise needs to combine its own development stage, business pain point, management maturity, enterprise nature and other factors to choose a performance management mode that is most suitable for itself, so as to respond to external changes in an agile manner, quickly give feedback to employees, and finally achieve the goal of common growth of the enterprise and employees.
Build excellent organization performance management winning weapon
Strategy decoding: One map, one heart
We are in an era of rapid change. We need to respond to internal and external changes more agile, adjust organizational strategic goals and team goals more quickly, and implement changes into employees' action goals and next steps in a more timely manner to achieve strategic decoding. The goal can not be made by each department behind closed doors, the goal alignment of the whole company can make the whole company keep pace; In addition, goals cannot be set and put on the shelf. Continuous process management allows employees to focus on how to achieve and do better. Finally, it's about decoding strategy. Alignment of goals and constant feedback are especially critical for organizations that need to run faster.
More and more enterprises are no longer just top-down step-by-step decomposition and passive acceptance of employees when making goals, but more emphasis on employees' initiative to set challenging goals, align organizational goals from the bottom up, and give full play to employees' subjective initiative. In addition, there may also be other people's contracted goals, cooperate with each other, establish a network goal structure, promote the dynamic play of individual value, and employees will also get multiple evaluation and comprehensive returns.
Continuous feedback: Connect employees and managers in real time
For performance management, its function is not to score at the end of the year, but to timely correct errors and promote the achievement of goals by paying attention to the process of goal realization. And performance feedback is an important means of correction. The once-a-year performance interview has evolved into real-time, sustainable feedback. Real-time feedback not only enables employees to constantly reset their goals and improve their work, but also recognizes the value of their hard work in a timely manner, making their work more fulfilling.
This continuous feedback requires more than just being able to connect employees and managers in real time; At the same time, it also brings a great challenge to the coach ability of managers, and also tests the organizational culture and management DNA. The manager should act as a catalyst to help subordinates focus on the right things, coach them to do the right things, inspire them to embrace challenges, and help them achieve performance goals while growing personally.
Objective evaluation: full-time normal, data-driven
At present, the mainstream performance evaluation methods include BSC balanced scorecard, KPI key performance indicators, 360-degree evaluation feedback, MBO management by objectives, OKR, dual-track system (performance + values). No matter what kind of performance evaluation method is adopted, the purpose of performance evaluation is to evaluate the contribution of employees in a fair and objective way, and identify high performance and low performance employees at the same time, so as to achieve the goal of promoting the vitality curve forward and improving organizational performance. At present, the performance evaluation of enterprises is not only a single dimension of performance achievement, but also a comprehensive evaluation of employees' performance contribution, ability matching and cultural values from multiple dimensions. At the same time, in addition to clear assessment criteria and scoring basis, data collection and real-time evaluation of goal achievement process are also important factors to consider in the evaluation of performance results. Combined with the accumulation of data over the years, data analysis is provided to see the changes of employees' performance results year-on-year and month-on-month, providing basis for talent decision-making.
Faced with increasingly fierce market competition and increasingly frequent industry changes, Chinese enterprises have embarked on the fast track of digital management and agile transformation. Performance management, as an important management means to promote the achievement of enterprise strategic goals and help enterprises achieve win-win results, has become increasingly popular in recent years. In the process of agile performance change, enterprises need no longer the stereotypical "one trick fresh" management tools, but should combine their own characteristics and change objectives, truly solve the pain points, promote the achievement of comprehensive solutions. Performance reform is not a high-speed sprint to switch an assessment mode, but more likely a marathon of gradual iteration and small steps of trial and error.
The essence behind the new agile performance management model is to focus on business pain points, focus on continuous performance improvement, achieve alignment, transparency and focus of strategic goals, pay attention to real-time communication and feedback in the process, help employees grow, stimulate their potential, and ultimately achieve a truly integrated win-win situation of employee success and enterprise success. Beisen Agile performance is bound to help enterprises achieve business success and build outstanding organizations.
