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HR Forum, March - Lets talk appraisal!

Timing is everything! I'm currently working with a company on a performance management (PM) project and I have to write this article on that very subject! Great timing, because working on the project made me reflect that during my 25 years in HR, I cannot remember one year where I was not involved in a process design, re design or a campaign to "engage" line managers in the PM process. Some aspect, be it performance evaluation, development and training, recognition and reward, objectives and KPI's or succession and capability, was always being looked at and benchmarked.

I am going to focus on the appraisal aspect for this article - or I will end up writing a book. So lets start with some straight talking! Many managers that I have worked with, would rather walk across broken glass than do an appraisal or tackle a performance issue. Many of those same mangers and their direct reports just saw the appraisal as an annual ritual, a necessity, like going to the dentist. More bureaucracy, adding hassle to their already busy schedules and demanded of them by the "police force", HR.

But, it makes sense that organisations put in a process to manage and improve performance and to ensure a strategy gets implemented. Intellectually, most managers understand that PM needs to go on throughout the year and nod during training courses, when there is a discussion about individual performance needing to evaluated, developed and recognised and direct reports being involved and engaged. Despite this, PM is one of the " most praised, criticised and debated HR management practices" (Alan Nankervis, Curtin University). So, it seems finding a company where this process works and employees see the value, is like looking for Utopia!

I can't promise Utopia, but here are some observations based on all those years working and re working the process.

1. Goals: I wish I had taken ten koruna for every time some one has said " I didn't agree with my objectives" or " I can't influence my objectives".

Objectives need to be set so that individuals have an input, feel they can be achieved and have some control over them. They need to be reviewed at least quarterly, as things change in organisations (well, the ones I worked for did!). I know this sounds obvious, however, the perception of many employees is that their goals are often not "SMART". This process takes time, but get it right, it saves time and argument later in the year.

There also need to be consequences if objectives are achieved or not. Differentiation is crucial. And we need to recognise that individuals are just that and are motivated by different things !


2. Alignment: I know myself how frustrating it is to have objectives where you can see no or a limited connection to the business goals or where they are just a reaction to the latest business crisis. I can tell you how liberating it is when I have seen the vision and strategy broken down into goals and targets and cascaded down the organisation. In my last company we used the balanced scorecard (BSC) as a means of breaking down the strategy and communicating what needed to be done. BSC is a great vehicle for giving clarity and removing communication complexity, if done well.

Fact. If people cant make sense of their objectives or see the link to the "bigger picture", individual and organisational performance will be damaged. Imagine a team pulling in different directions versus one that knows what it is doing and why.


3. Support: Putting in training, development and coaching support for all those involved in the process is a good investment of time, if (and it is a big "if",) it focuses on answering queries, concerns and practical "how to" approaches that really help. Focussing on the process and forms will not add value and managers will be writing their Tesco shopping list instead of making notes at the training session.

Help managers to learn the basics of coaching and handling performance issues. In my last company there were penalties for not doing the basics, but more importantly the succession and recognition system rewarded those who did develop the organisational talent pool and improved on their employee survey results. Don't get disillusioned, it is like cleaning the Charles Bridge, the communication and development piece never stops and there is always much more to do. Keep it simple, keep doing it and find some line manager role models (and they do exist, if you hunt for them enough!)


4. Core Skills: " Being willing to put in time, be honest and listen, are among the key ingredients for a successful appraisal" ( Miles, Westpac Bank). I can think of the best appraisals I have done and the most useful appraisals I have had. None of them focussed on the form. They basically were good conversations where I felt heard and understood, even if not agreed with! For me, this quote sums up the essence of a good appraisal conversation. Getting this most basic level to work is a start. Building a relationship with the people you work with will bring trust, information and feedback. Research shows that where these things happen, people feel better and performance gets better.


5. 2way Process: Life would be much easier if all mangers were perfect and all employees delivered what they said they would. Unfortunately, managers aren't and can't read minds and vice versa. Whilst it is the managers responsibility to set the tone for the meeting, employees need to prepare and have ideas and views and evidence to support these. Appraisals work best when both people are active in the conversation, sharing their views and ideas. It seems you "only get as much as you give". We need to keep talking to each other as often in a matrix organisation managers don't always see staff operating directly.

Coming full circle, performance management then is not just about better managing of performance, but improving performance. In a survey by Mercer's, the core issues that affected the PM process were inadequate skills at giving feedback, lack of follow up on agreed actions and inadequate ongoing feedback. Often, we get obsessed by the process and the forms. Forms don't make people feel better. Good, honest two way conversations usually do!

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