As of September, one of the largest companies in the world will do all of its employees and managers an enormous favor: It will get rid of the annual performance review. See full article here
“Imagine, for a company of 330,000 people, changing the performance management process—it’s huge,” Nanterme said. “We’re going to get rid of probably 90 percent of what we did in the past.”
It will implement a more fluid system, in which employees receive continuous feedback from their managers on an ongoing basis following assignments.
These companies say their own research, as well as outside studies, ultimately convinced them that all the time, money and effort spent didn”t ultimately accomplish their main goal — to drive better performance among employees.
In March, the consulting and accounting giant Deloitte announced that it was piloting a new program in which, like at Accenture, rankings would disappear and the evaluation process would unfold incrementally throughout the year. Deloitte is also experimenting with using only four simple questions in its reviews, two of which simply require yes or no answers.
“All this terminology of rankings—forcing rankings along some distribution curve or whatever—we’re done with that,” Nanterme said of Accenture”s decision. “We’re going to evaluate you in your role, not vis à vis someone else who might work in Washington, who might work in Bangalore. It’s irrelevant. It should be about you.”
“Employees that do best in performance management systems tend to be the employees that are the most narcissistic and self-promoting,” said Brian Kropp, the HR practice leader for CEB. “Those aren’t necessarily the employees you need to be the best organization going forward.”
“The art of leadership is not to spend your time measuring, evaluating,” Nanterme said. “It’s all about selecting the person.
Everyone’s day is filled with tasks of short duration that don’t typically require extensive collaboration or highly involved management, yet must be done to bring the larger project to its most propitious conclusion.
And we want to have the ability to manage these everyday tasks with optimal efficiency and productivity, without having to immerse ourselves – and potentially get lost – in extremely complex project management tools.
Do your employees understand what you expect of them before their projects begin and on a continuous basis? Have you established clear goals and set hard and fast deadlines? If not, they’re liable to quickly disengage from productive behavior, especially when they are reprimanded for failing to complete an assigned task whose significance was insufficiently described to them.
Do your employees know what will happen when they’ve done a good job and when they’ve fallen short? It’s not enough for employees to fear they’ll be fired if they don’t perform up to expectations.