In today’s environment of greater competition, it becomes more important that you understand your Sustainable Competitive Advantage. What is it that makes your customers buy from you and not a competitor? What will be your success factor in this current market?

I find that most professional firms point of difference is their people and the way they deliver their services. So, it is important that you develop a culture in your business that represents the way you want to do business.

A crucial factor of culture development in a business is the Performance Management (PM) of its’ team. The process ensures that the employees get the direction, feedback and development they need to succeed in their roles. It also provides a platform to develop the culture and values of the business.

The aim of a successful Performance Management process is to:

  • Align the contribution of the employees with the goals of the business;
  • Provide clear direction of what is expected of them through detailed job descriptions that develop as an employee progresses through the business;
    Build competencies by setting the standard for tasks and financial KPI’s for accountability;
  • Outline the career development of the employee with necessary or desired training programs to continually improve their performance, increase their knowledge, skills and capabilities;
    Provide a safe environment where regular discussions take place between the employee and their manager/supervisor about expectations, progress, outcomes and development needs;
    Provide a formal process for feedback and recognition;
  • Engage and empower employees to take responsibility for their own performance, development and career progression;

Performance management reviews should be conducted at least annually, however, in smaller teams this may be done quarterly or through a less informal process periodically. Setting the expectation of what you require from an employee is crucial to successful people management. Understanding their abilities, their strengths and weaknesses allows you to lead them in a way that will achieve maximum benefit and create an environment for success.

There are many benefits to conducting a structured performance management program for all the stakeholders –the owners, the employees and the customers.

The benefits to the owners:

  • Alignment of business goals
  • Employee retention
  • Improved team morale
  • More engaged tea
  • Minimize the skill gaps by improved training
  • Reduced costs
  • Accuracy in job performance
  • Accountability and taking of ownership
  • Improved communication
  • Reduced risks
  • Increased profit

The benefits to the client:

  • Continuity of business relationships
  • Increased quality performance of services
  • Increased communication

The benefits to the employees:

  • Improved team morale
  • Improved job satisfaction
  • Increased clarity of expectations
  • Possible increase of financial rewards
  • Increased communication
  • Clarity of career path
  • Skills development
  • Increase in personal growth

As we enter the final months of this financial year, now is time to plan and establish your performance management process. Take the time to develop the process and include the aspects that you would like to improve in your business.  Align team members’ objectives with your goals. Here are some questions that will assist you to be prepared.

  1. What are your PM related challenges?
  2. What are your PM objectives?
  3. What are the developmental needs of your team?
  4. Have you detailed job descriptions for each team member?
  5. Have you communicated the standard for performance expectation?
  6. Have you set the coming years budgets and KPIs?
  7. Have you developed a rewards and recognition process?
  8. How will you share the next 12 months’ goals for the business with the team?
  9. Have you developed and documented the steps required to conduct a PM review? What’s needed?
Be the difference in your business!
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *