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The Six Disciplines Blog


Thursday, August 04, 2016

10 Ways Performance Management Will Change in the Next 3 Years

No doubt about it, the performance management industry is changing – QUICKLY!. Let’s take a brief look at “10 Ways Performance Management Will Change in the Next 3 Years”

1. “The market for new performance management systems is emerging in 2016,“. says the leading industry HR expert Josh Bersin.

2. “There is a massive replacement of licensed, traditional HRMS systems taking place.” As a result, the HR software market reinvents itself over the next several years.

3. “Annual performance reviews go away – replaced by frequent check-ins. Since some 90% of HR professionals don’t believe performance reviews are effective, the dreaded, old school performance reviews are finally going away, slowly at first, and now, at a much quicker pace. Check-ins are regular and informal meetings (or conversations) between managers and individual employees to detect issues early on, support employees and encourage progress.

4The significance of leadership development within teams increases. Since most work is accomplished in teams, it’s important to give clear responsibility, while monitoring progress of your team members and the team’s progress overall. Three types of leadership skills (process leadership, functional leadership and change leadership) are all essential skills required to manage teams effectively.

5. The use of multi-rater feedback for team members increases. Every employee has multiple “customers” – their immediate manager or supervisor, people who use the output of their work inside and outside the organization, those who they work with to get projects done, etc. Multi-rater feedback surveys can be given to a number of people who have a variety of perspectives of your performance. This takes courage to ask and to solicit constructive feedback, it takes an investment of time to provide that feedback, and it takes openness to process the feedback to advance your development.

6. Performance management and coaching evolve to be both team and employee-driven. With new mobile performance management apps, your employees can track and update the progress of their plans, goals, and performance results at any time, on any device. Your managers can easily set up multi-rater feedback for their team members, resulting in more meaningful one-on-ones, and more engaged employees. Performance management and coaching can now be both team AND employee-driven. This approach drives engagement, motivation, and ultimately improves organizational productivity with more consistent execution of your strategy.

7. Continuous feedback vs. the annual performance review. Many organizations have experienced the dysfunction of the once-a-year performance conversation, and they’re increasingly ditching this traditional practice. The “once and done” annual performance review event is being replaced by an ongoing and more real-time stream of feedback between employees and their managers. This can take the form of weekly team check-ins, quarterly one-on-one check-ins, and multi-rater feedback, which recasts the annual performance review to be developmentally focused – not performance- or compensation-focused. With Six Disciplines, your organization gets the best of all three worlds: continuous feedback, multi-rater feedback, and annual performance reviews, which are focused on future performance and leadership development – not past performance.

8. Shifting from a performance-based review to a development-focused review. Because performance feedback can be delivered continuously, the previous annual performance review process can now shift to a capabilities and skills development process of your employees. Since less time is required to review the past, the dialogue between manager and employee becomes more forward-thinking, future-focused, and career development based.

9. The importance of employee coaching vs. managing continues to grow and evolve. Amy Herrbold, Senior Director of Organizational Development at Kellogg: “advocates for organizations to develop coaching cultures, where leaders are equipped to serve effectively as coaches for their team members. Furthermore, Herrbold feels that it is imperative that organizations need to be able to, “adjust goals, actively work priorities and calibrate on expected outcomes to manage work effort and remove bias in favor of the facts.” By clearly linking peoples’ individual goals and priorities to the larger strategy of the organization, leaders help drive value-add performance and feedback. Coaching conversations can then be grounded in activities that align with the culture and realization of that strategy.” With the advent of more frequent feedback comes the requirement for a new set of management skills, including new employee coaching techniques, focused on challenging team members to take on more responsibility and accountability.

10. The changing landscape of teamwork. Regardless of the type of industry, the majority of work today is accomplished by groups or teams of people working together. Your teams are typically not static, and many times they’re cross-functional. Increasingly, your teams include people who are not even employees of the organization. Regardless, the agility of your entire organization depends on the ability for teams to communicate and collaborate effectively to both “run the business” and “change the business” at the same time. Developing self-leadership capabilities within every individual is a key requirement to facilitate effective teamwork.

Want to know more about the quickly-changing performance management field? Contact us at Six Disciplines to find out how we help our customers improve their performance every day.

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Since 2005, the Six Disciplines blog offers posts about performance excellence, strategy execution, business coaching, leadership development, innovation, and business process improvement. This blog has received prestigious awards for leadership and management and has been syndicated by several major media sources.