10 Positive & Powerful Performance Management Strategies
Pete is the general manager of a west coast plant for a national company. His performance management efforts are failing. He has had trouble meeting his revenue and profit numbers for the last year. His District Manager has asked him for a meeting to discuss action plans for performance improvement. Pete’s company is in a highly competitive market and margins are slim. He has been a general manager for several years and reached company goals before. However, he never achieved stellar results. This year has been particularly difficult. A bigger national competitor has purchased smaller local companies. They lowered prices and he is losing accounts. Likewise, he lost some employees due to turnover. Also, he fired a few managers for lack of results. Most of his salespeople are new. Unfortunately, sales have been slow in coming in.
Not surprisingly, Pete’s been working long hours and the stress is getting to him. He has wracked his brain with how to improve results quickly. He has already:
- Threatened his management team.
- Cut expenses to the bone.
- Pulled in favors from a few key accounts.
- Fired people.
- Held service and sales contests.
- Demanded his management teamwork extra hours.
- Delayed vacations
Unfortunately, results have not improved. He knew his job was on the line and he was not sure what to do next. However, he would have a plan for his boss with timelines and new projections. He just dreaded the meeting. His boss took no excuses. He ranted and raved at him and his team. Pete just hoped he did not stay an extra day.
This is a typical scenario and challenge managers face today. How would you rate this manager as a boss? What do you think his managers would say about his leadership? He is not a bad person. Some in upper management would say he is a good boss, doing the best he can. Others would say fire him. What do you think his employees say?
You Have to Create a Better Process
A 100-year-old services company in the US wanted to improve sales to their existing customers. Their results were mediocre. They had tried a variety of incentives and meetings, but nothing worked. By engaging them with the positive performance management strategies they began to make progress. Improvement began with a thorough assessment of their leadership skills. In addition, all the CX data was analyzed. Tracking reports were created around well-designed goals. Training was designed and implemented. The goals were shared with all involved. In summary, program roll-out involved consistent communication on the numbers and goals. Occasional incentives helped energize the team. On-going positive follow-up coaching and regular recognition caused results to soar.
What changed? Did the employees decide to become better? Are they fed up and decide to do it themselves? As a group, did they bring management a new plan? Certainly not. The management changed, with some help. They refocused their efforts with new goals, tools, and support. How was this process different from Pete’s?
Bad bosses often lack clear goals and plans. If they have them their execution is suspect and weak. Therefore, many threaten employees with termination if they are not achieved. One general manager in a retail organization changed goals and direction so often, he disillusioned his employees. Performance suffered and he lost his job. Other managers simply do not worry about goals. They do not know how to set them; no one showed them how or they do not care. So, they show up every day and do the best they can. Little is discussed about goals or progress. Of course, most managers have goals, but they forget to tell the employees. In short, if the goals are not reached, the employees get in trouble. Or are tormented for the lack of results.
How to Create High Performance Management Plans
Once they are clear on the goals and action plans, most people perform better. What is it about this that confuses or frightens managers? So, few really do it well. Research shows goal setting is the motivational technique that works, and performance will improve. To set goals and plans, a manager must:
- Think about and create a plan for his area, department, or company.
- Do this regularly with periodic updates, staying one step ahead of the company process.
- Identify department or company strengths and areas of improvement.
- Identify each direct report’s strengths and areas of improvement.
- Analyze customer feedback or quality data.
- Consider all relevant information: equipment, the economy, competition, resources, etc.
- Set SMART (Specific, Measurable, Attainable, Relevant and Time bound) goals on company priorities. Improving customer service is not a SMART goal. It is vague. Improving the customer survey results from 69% to 75% in the next year is a SMART goal.
- Regularly communicate results.
- Celebrate wins and praise progress.
- Set goals and review results with each employee on at least a monthly basis.
Furthermore, we recommend that managers include employees in the process. One manager I met in an airport had just accepted a job as plant manager with a new company. He was moving from Memphis to Houston. I could tell he was a good boss based on his actions. Similarly, in how he spoke about the value of his team. After assuming his new role, one of his first steps included involving his team in a planning process. Why do this? People want to be part of something – the team, a cause, a mission. With their contribution, managers not only achieve that, but tap their minds for creative ideas that they do not have. In addition, the employees are committed to performance management plans that they are a part of. Therefore, they now “own” them and the manager has buy-in.
All good performance begins with clear expectations and goals. When employees understand what managers expect, they will stay more engaged. Also, they want to do their jobs well and find ways to keep improving. They will perform more effectively and become more satisfied with their jobs. Without this important communication, only the absolute best employees will excel. The biggest complaint from managers is that all of this takes time. And it does. However, it is an investment in a process that saves you time later and that can dramatically improve productivity. Therefore, effective leadership is a high contact sport. Here are four key considerations.
4 Considerations for Performance Management Success
Above all, meet one on one and review the job description and duties in detail with a new employee. This begins in the hiring process. Answer their questions about the job, and once hired have them talk to others doing the job. Set goals for 30 through 90 days. Meet with the employee periodically to clarify any misunderstandings, review progress and handle problems. Ask for periodic updates on projects, and continue to check employees’ expectations: first day, first week, first month, and monthly. Consider, great performance management is a process not an event at review time.
Meet one on one and establish clear goals with all employees. For example, put three to five goals in writing and clarify what is in it for them, relating their performance to personal impact. Schedule a meeting to discuss this at least monthly, but flex with their challenges or needs. This is an invaluable communication process that will help the employee succeed. In contrast, some companies discuss goals daily, but most managers do not do it at all or just once a year at a performance review. That is not enough; jobs are too fast-paced and complex to let things go that long. As a result, good bosses make goal-setting, communication and feedback on results a top priority.
So, review employees’ performance daily, weekly, monthly, or quarterly depending on the need. Coaching discussions are not about pay increases or for job evaluation purposes. Follow your company procedures for those. They are usually required every six months or once a year. With coaching, talk about recent specific performance one on one and review how things are going from two perspectives. First, understand the employee’s view. Ask these key questions: How’s it going? What is working? Identify your key problems or challenges? What can you do differently or better? How can I help? While you ask the questions, you thoughtfully listen to their comments and then give appropriate feedback. For example:
- Give positive feedback. “I agree you did a good job on the report. It was specific and well-researched.”
- Bring up problems. For example, say, “Have you noticed the growth in complaints? What is happening there? How are you handling it?”
- Give guidance and create a plan of action together. For example, “What about a campaign to gain new customers. I have not seen much of that. Can we focus on that? What are your ideas?”
In addition, if you are separated by distance, this can be handled with a phone conference or Skype. Moreover, e-mail is inappropriate – it is too impersonal, and we will often write what we might not say in person.
Provide on-boarding training for all new employees. Likewise, enroll your other employees in all sessions your company offers. If they do not have any training, use videos from YouTube or our Superstar Leadership Blog. Learn to train yourself. To clarify, did you know best in class training is 50-60 hours a year per employee? In other words, if you commit to this your team, they will achieve better results.
Six Other Performance Management Strategies
- Manage by Wandering Around: Tom Peters coined this term. It means to touch base and observe what is happening with your team every day. Pat them on the back, tell a joke, or give them a hand if needed. Listen to what is going on or give needed praise and encouragement. However, there are times that your duties might prevent you from doing this but make every effort to make it a regular practice.
- Every day at the end of the day check in with every employee you can: Keep it informal and ask things like: How did it go? What progress did you make? Any problems? Anything you need help with? What is the plan tomorrow? Good job on that account. Always try to keep things positive!
- Track your priority goals on a bulletin board, an intra-company web site or dashboard: This provides immediate recognition for employees. It also, fans the flame of competition and pride in doing the job well.
- Meet weekly or every other week and review progress in a team meeting: Include people in other offices through phone conferences or a WebEx. The meeting does not have to be long. You want to give updates on priority goals or projects. Or discuss problems or issues. Similarly, communicate any news about your area or company.
- Keep people informed through email and text updates: Communicate progress and results to employees regularly. Without information, people tend to think the worst. Then, the rumor mill grows. This is especially important to employees in remote offices. Keep your e-mails positive as well. Use them for recognition, or sharing ideas, not reprimanding.
- Use the phone (or Skype) for the same reasons as above, but it is more personal: The phone is a good tool for coaching. Managers of a client company call their locations across their districts a couple of times a week to encourage or recognize them. This also gives them the opportunity to find out how things are going. In the beginning, most employees asked, “What’s the problem?” They were so used to managers only contacting them with issues. By the way, use the phone to confront performance issues only if there is no way to meet one on one. Then, focus on the problem, not the person. Consequently, identify a plan for improvement.
Pulling It All Together
Certainly, as a manager, you have the single biggest influence on your employees’ performance. Most importantly, you make up 70% of the impact on how well they do their job. Be proactive and consider the performance management strategies we have discussed. With positive implementation, you will have a powerful impact on your team’s results. In conclusion, remember this, “if you want your team to be better you must be a better leader.”
Also, do you want to learn how to become a performance management star? If so, I suggest you check out our latest book, Superstar Leadership.
In addition, go here for our RealTime Learning & Training leadership and personal development website. Micro-learning and career advancement at your fingertips!
Finally, do you want to accelerate your career and become a better coach? Therefore, see our complimentary eBook guide and assessment: Coaching for Results.