Performance Management: The Right Thing for Leaders To Do

Ironically, after a downsizing or restructuring, or navigating difficult economic conditions, the tendency for leaders is to not manage performance better. In actuality, with fear, uncertainty, and low trust running rampant in many organizations, implementing a robust performance management process is not only good business, it's the humane thing to do for staff at all levels. Here's why:

1. People want to know how they can contribute to the success of the organization - for their own job security and stability, sure, but also genuinely wanting their company to do well. Leaders have everyone's attention right now in this economy - so tell people what you need from them and why, coach them to get there, and eliminate obstacles in their way.
2. Performance management simply helps everyone do better by focusing attention on specific goals and behaviors. And who doesn't want to know the "rules of the game" where they work?
3. Paradoxically, it's a company's best people who most want their performance managed, measured, and rewarded. Winners lose morale when there are no consequences for sub-par performance. These folks will be the first to leave when the job market turns around.
4. In this economy, can anyone argue that individual, team, and overall organizational performance doesn't matter, or that there shouldn't be consequences for poor performance? (regardless of your politics, the uproar over bank bailouts, Wall Street pay, health care reform, and government budget deficits indicate a new-found interest in accountability for performance).
5. Uncertainty breeds doubt and a lack of confidence and trust. Employees want more control over their destiny. Seeing how their work contributes to the company's bottom or top line gives them that control. Tell people what they need to do to be successful. Give employees real power to innovate. Have meaningful and actionable conversations about what win/win performance looks like (for employees and for the organization).
6. Performance management is a critical component of a talent management strategy that will ensure a pipeline of people in the right jobs, doing work that matters.

Engage your people today and determine together what performance matters in your organization, and which behaviors, attitudes, and actions will drive those specific results. Make clear how everyone can and will contribute. Then help them be successful. Because when it comes to managing performance at all levels, the status quo is no longer an option. Besides, as a leader, managing performance is just about the most humane thing you can do right now.

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