Performance Management: The Individual Strategic Plan
Performance Management: The Individual Strategic Plan
"Would you tell me please, which way I ought to go from here?"
"That depends a good deal on where you want to get to," said the Cat.
"I don’t much care where-" said Alice
"Then it doesn’t much matter which way you go," said the Cat.
- from Alice’s Adventures in Wonderland
If you have had the opportunity to attend one of my strategic planning sessions, you’ve seen me use this quote in reference to developing a company or department’s strategic plan. But, a strategic plan is a waste of time and effort if it does not get communicated and tied to the performance of all employees through Individual Strategic Plans. Whether this is a formal process or informal process depends a great deal on your particular organization.
Let’s start with the informal process... If your organization can effectively communicate and link the strategic goals of the organization to each individual’s goals AND regularly provide feedback to an employee, then you may be able to succeed without a formal performance management tool. Even with an informal process, you will need to develop a system with specific checkpoints to be sure the communication is constant and two-way to ensure that the employee is on-track and getting both positive and constructive feedback in a timely manner.
If the world were perfect, I would encourage everyone to use an informal process; however, time seems to get the best of us. Without a formal process, goals are unclear at best, and feedback is rare. To facilitate a process that is successful for both the employee and the organization, a formal performance management system can "work for you." A well-designed performance management system should make your job easier not more cumbersome.
To begin developing a system or any new program or initiative, I like to use Development Dimension International’s (DDI) six Checkpoints for Implementation:
1. OUTCOMES — What results am I looking for?
For your performance management system, you’ll need to think about what you hope to gain from the system. For example: increased productivity, improved retention, increased employee morale, and improved communications.
2. BENEFITS — Why is this important? (Payoff — What’s in it for me?)
Both the company and the employee need to know why they are doing this in order to feel ownership for the system. Your organization may see the benefits as some of the outcomes listed above, as well as a method for linking individual performance to the organization’s performance. Individuals may see it as a way to continue to develop and grow with the organization while adding value back to the company. Remember, growth opportunities and meaningful work are two of the top reasons employees leave their jobs.
3. BARRIERS — What might prevent me from being successful?
In order to ensure the success of your system, you need to anticipate any barriers and identify what you will do to prevent or minimize the impact of those barriers. Some examples may be: resistance to change, time constraints, or lack of management support.
4. SUPPORT — What resources are available?
You’ll need to clearly identify what resources or individuals are available to help you develop and implement the system. Once you have identified your resources, you’ll want to include them in the process as much as possible in order to obtain their buy-in and benefit from what they can offer. Some examples of support are: top management, employees, expert consults, other organizations, budget, and customer needs.
5. APPROACH — What steps must I take to achieve my goals? (Be specific — who, when, duration, etc.)
By identifying the outcomes, benefits, barriers, and supports, you will be better able to begin mapping out the approach for developing and implementing your performance management system. Some questions you may want to consider include:
What exactly do you need formalized to help facilitate goal setting, feedback, and documentation?
Many times organizations assume performance management is the evaluation at the end of the review period. However, an effective performance management system begins with the development of a performance plan at the BEGINNING of the evaluation period. This performance plan or individual strategic plan is a living document that may need updating throughout the plan year.
In general, systems should include both competencies and goals. With most of my clients, we develop a group of core competencies or behaviors that mirror the values of the organization. Plus, we develop individualized goals for each employee that are tied to the goals of the business.
There are many canned and customizable systems out there that can help you identify what you want to include in your system. To help you generate ideas, you may want to seek samples from other companies or resources (i.e. Performance Appraisals: A Collection of Samples by SHRM Information Center ~$35.00 or Performance Impact by KnowledgePoint). Be sure any piece of information you include on the form adds value rather than creates work for others. Plus, be sure the form is a tool not a rule!
How often do you need to formally discuss goals and feedback versus informally?
Like your business plan, a performance plan is a living document and the goals and feedback should be ongoing and constant. However, it often takes a formal get-together for this to actually happen. If your organization is not one to proactively meet throughout the plan year, then a formal meeting, even if short, should be arranged at least quarterly to ensure an employee is getting timely feedback and still supporting both their individual and the organization’s strategic plan(s). Plus, if you summarize this quarterly meeting your end of the year review will be a breeze.
Who needs to be trained on performance management and coaching?
We all could benefit from training on performance management and coaching. Even if you are the best manager, a refresher on performance management simply helps you continuously grow as a proactive manager. Formal training can also help ensure all managers are working with the same set of tools, including assistance with the seeming struggle about how to be a manager and a coach at the same time. Learning what has been successful and not successful with others will help everyone in the organization succeed.
What will you do to involve both employees and management in the process?
Employees and supervisors will not take the time for performance planning and reviews if management does not support it. Management has to realize the value added (i.e. increased productivity, improved morale, retention) of performance management and demonstrate their support of the system to all employees. This may require involving a key management player in the development and implementation of the system.
Like management, employees will be more encouraged to take the feedback and direction of performance management seriously if they are involved with the development of the system. To do this, you can either survey employees to identify their needs or include them in a team tasked to evaluate and develop a program. COMMUNICATE!!!
How will the system be tied to compensation?
Of course, any system is going to be much more open and honest when there is little or no connection to pay. The catch is, that you need to have some way to measure employee performance, in order to provide performance based increases. You’ll need to develop a clear philosophy and supporting policy for merit increases. Because this will depend on your budget and values, each organization may have a totally different philosophy and policy on pay increases. By making this policy clear and communicating it up front, the link to compensation will have a better chance of being both objective and effective.
6. EVALUATION — How will I know when I’ve reached my goal?
Too often this last checkpoint in implementation is skipped. It is very important for you to constantly evaluate your program. Some ways you can do this is through focus groups, employee surveys, or interviewing management. The key is to schedule it and just do it!
Remember, you don’t want your employees feeling like Alice did in Alice in Wonderland. You need to be sure you are communicating the expectations and goals of the organization and tying them to each employee’s Individual Strategic Plan in order to realize success. Whether this is a formal or an informal process doesn’t matter as long as you are doing it!!
Performance Management The Individual Strategic Plan - To learn more about this author, visit Robin Throckmorton's Website.
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Performance management has become an ever-increasing critical tool to success for businesses. Within the last year we have experienced both a booming economy as well as a recession; a historically low unemployment rate combined with massive layoffs and business closings. But the bottom line to all of this is people! AND, we are human and as such are typically much more productive when we have clear goals, expectations, and feedback.
"Would you tell me please, which way I ought to go from here?"
"That depends a good deal on where you want to get to," said the Cat.
"I don’t much care where-" said Alice
"Then it doesn’t much matter which way you go," said the Cat.
- from Alice’s Adventures in Wonderland
If you have had the opportunity to attend one of my strategic planning sessions, you’ve seen me use this quote in reference to developing a company or department’s strategic plan. But, a strategic plan is a waste of time and effort if it does not get communicated and tied to the performance of all employees through Individual Strategic Plans. Whether this is a formal process or informal process depends a great deal on your particular organization.
Let’s start with the informal process... If your organization can effectively communicate and link the strategic goals of the organization to each individual’s goals AND regularly provide feedback to an employee, then you may be able to succeed without a formal performance management tool. Even with an informal process, you will need to develop a system with specific checkpoints to be sure the communication is constant and two-way to ensure that the employee is on-track and getting both positive and constructive feedback in a timely manner.
If the world were perfect, I would encourage everyone to use an informal process; however, time seems to get the best of us. Without a formal process, goals are unclear at best, and feedback is rare. To facilitate a process that is successful for both the employee and the organization, a formal performance management system can "work for you." A well-designed performance management system should make your job easier not more cumbersome.
To begin developing a system or any new program or initiative, I like to use Development Dimension International’s (DDI) six Checkpoints for Implementation:
1. OUTCOMES — What results am I looking for?
For your performance management system, you’ll need to think about what you hope to gain from the system. For example: increased productivity, improved retention, increased employee morale, and improved communications.
2. BENEFITS — Why is this important? (Payoff — What’s in it for me?)
Both the company and the employee need to know why they are doing this in order to feel ownership for the system. Your organization may see the benefits as some of the outcomes listed above, as well as a method for linking individual performance to the organization’s performance. Individuals may see it as a way to continue to develop and grow with the organization while adding value back to the company. Remember, growth opportunities and meaningful work are two of the top reasons employees leave their jobs.
3. BARRIERS — What might prevent me from being successful?
In order to ensure the success of your system, you need to anticipate any barriers and identify what you will do to prevent or minimize the impact of those barriers. Some examples may be: resistance to change, time constraints, or lack of management support.
4. SUPPORT — What resources are available?
You’ll need to clearly identify what resources or individuals are available to help you develop and implement the system. Once you have identified your resources, you’ll want to include them in the process as much as possible in order to obtain their buy-in and benefit from what they can offer. Some examples of support are: top management, employees, expert consults, other organizations, budget, and customer needs.
5. APPROACH — What steps must I take to achieve my goals? (Be specific — who, when, duration, etc.)
By identifying the outcomes, benefits, barriers, and supports, you will be better able to begin mapping out the approach for developing and implementing your performance management system. Some questions you may want to consider include:
What exactly do you need formalized to help facilitate goal setting, feedback, and documentation?
Many times organizations assume performance management is the evaluation at the end of the review period. However, an effective performance management system begins with the development of a performance plan at the BEGINNING of the evaluation period. This performance plan or individual strategic plan is a living document that may need updating throughout the plan year.
In general, systems should include both competencies and goals. With most of my clients, we develop a group of core competencies or behaviors that mirror the values of the organization. Plus, we develop individualized goals for each employee that are tied to the goals of the business.
There are many canned and customizable systems out there that can help you identify what you want to include in your system. To help you generate ideas, you may want to seek samples from other companies or resources (i.e. Performance Appraisals: A Collection of Samples by SHRM Information Center ~$35.00 or Performance Impact by KnowledgePoint). Be sure any piece of information you include on the form adds value rather than creates work for others. Plus, be sure the form is a tool not a rule!
How often do you need to formally discuss goals and feedback versus informally?
Like your business plan, a performance plan is a living document and the goals and feedback should be ongoing and constant. However, it often takes a formal get-together for this to actually happen. If your organization is not one to proactively meet throughout the plan year, then a formal meeting, even if short, should be arranged at least quarterly to ensure an employee is getting timely feedback and still supporting both their individual and the organization’s strategic plan(s). Plus, if you summarize this quarterly meeting your end of the year review will be a breeze.
Who needs to be trained on performance management and coaching?
We all could benefit from training on performance management and coaching. Even if you are the best manager, a refresher on performance management simply helps you continuously grow as a proactive manager. Formal training can also help ensure all managers are working with the same set of tools, including assistance with the seeming struggle about how to be a manager and a coach at the same time. Learning what has been successful and not successful with others will help everyone in the organization succeed.
What will you do to involve both employees and management in the process?
Employees and supervisors will not take the time for performance planning and reviews if management does not support it. Management has to realize the value added (i.e. increased productivity, improved morale, retention) of performance management and demonstrate their support of the system to all employees. This may require involving a key management player in the development and implementation of the system.
Like management, employees will be more encouraged to take the feedback and direction of performance management seriously if they are involved with the development of the system. To do this, you can either survey employees to identify their needs or include them in a team tasked to evaluate and develop a program. COMMUNICATE!!!
How will the system be tied to compensation?
Of course, any system is going to be much more open and honest when there is little or no connection to pay. The catch is, that you need to have some way to measure employee performance, in order to provide performance based increases. You’ll need to develop a clear philosophy and supporting policy for merit increases. Because this will depend on your budget and values, each organization may have a totally different philosophy and policy on pay increases. By making this policy clear and communicating it up front, the link to compensation will have a better chance of being both objective and effective.
6. EVALUATION — How will I know when I’ve reached my goal?
Too often this last checkpoint in implementation is skipped. It is very important for you to constantly evaluate your program. Some ways you can do this is through focus groups, employee surveys, or interviewing management. The key is to schedule it and just do it!
Remember, you don’t want your employees feeling like Alice did in Alice in Wonderland. You need to be sure you are communicating the expectations and goals of the organization and tying them to each employee’s Individual Strategic Plan in order to realize success. Whether this is a formal or an informal process doesn’t matter as long as you are doing it!!
Performance Management The Individual Strategic Plan - To learn more about this author, visit Robin Throckmorton's Website.
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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