When to start doing “formal” performance reviews, how to structure talent conversations and link that to growth for the individual and the organizations? Do these questions haunt you? In the virtual conference on SME Talent organized by People Matters, Shyamla Deshpande, Consultant and veteran HR practitioner, explores how to build performance management systems when you are small organizations prepping to scale-up.
The key takeaways from the session:
You need to first crack the thought process
Before finalizing the right performance management system, you should ask the right questions.
- Why do we need to have a performance management system in place?
- When is the right time to get one.
- Who will drive the project.
- What kinds of tools are required for the system
- And How should the system be measured.
Be ready with the Balance Scorecard strategy
The BSC is a framework to translate the vision and strategy into operational terms. And makes strategy everybody’s job.
The BCS creates climate to support strategic change
- Create strategic awareness
- Align personal objectives
- Align incentive compensation
- Align activities to goals or else you will be busy doing a lot and not achieve results
- Break down the strategy into financial, customer, process and people perspectives
- Each function will own/be assigned relevant parts of the strategy which will be translated into the KRA
- KPI will be measurable targets for each KRA. There will be a maximum of 5-8 KRA per role and will attempt to distribute them so that there is a balanced approach in dirving results
- Weightage will be given to each KRAs to define relative importance of the KRAs
Prepare the Performance Management Cycle
Goal Setting: Job description/KRA & KPI sheet, Set KPI with Supervisor
Appraisal Management: Appraisal form, appraisal meeting, feedback
Performance Review: Employee development
A good performance depends on two distinct features. It depends on competency and commitment. Competency is measured by your knowledge, skill and experience, while commitment is the interest, motivation and confidence. And it also should be remembered that a good manager's 30% time should be devoted to people issues.