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How Do Performance Management Systems (PMS) Help You Achieve Flawless Execution?
Performance management is a key business process that ensures that team efforts conjoin into the organization’s common goals. The process that ensures that outputs and activities meet an organization’s goals effectively, performance management is becoming more than necessary for the changing business landscape. So, let’s talk about basics then?
Performance management is a process of continuous communication and constructive feedback between all the organization levels to achieve the organization’s objectives and key results. The framework of performance management not only helps in achieving common goals together but also motivates employees to do the best of their capacity while boosting employee-manager relationships.
However, over the years, performance management strategies have undergone a paradigm shift. As per the report published in Harvard Business Review, businesses aren’t operating on annual cycles anymore. Thus, companies must add frequent check-ins in their performance management systems to make the process agile. This will also help in achieving organizational goals with more clarity and focus on priority. This is why they are investing more resources in an effective performance management system. And why not? It’s only possible through an effective performance system that leaders can gain insight into the future and defeat early threats. Not only this, if the problem is detected, it’s your PMS system that tells you what works for solving that problem.
Apart from this, performance management helps companies in
a. Goal Alignment and OKR setting
b. Channels the practical and constructive feedback
c. Improves employees retention rate
d. Improves employee engagement
Well, now that you’ve got all the pieces of the puzzle of organization goals. What’s next? Flawless execution. This is where many businesses tend to freeze. Reason being- their poor performance management system.
Here we’re unlocking the playbook of how performance management systems (PMS) help you achieve flawless execution?
Oust your Traditional Performance Management methods:
When it comes to managing the business, the phenomenon of one-size-fits-all doesn’t work. We can’t deny that two performance management systems are most likely to be different from each other (based on the business model). In this case, the best practice is opting for agile performance management methods that focus more on employees’ overall development and organizational growth. At the same time, Traditional Performance management methods weigh only employees’ performance and evaluation. A study by Deloitte found that only 8% of companies believe that their traditional method drives business value. Thus, the secret ingredient of flawless execution somehow lies in adopting an overarching process that is very engaging and collaborative in nature.
Align Individual goals and company objectives:
Every organization believes in goal setting. But only setting goals is not enough for achieving flawless execution. It’s important to align individual goals with company objectives. Breaking down further, the cycle must move like- Employee goal <-> Team goal <-> Organizational goal.
Alignment of goals will give a clear picture of how each team member’s role fits into the company’s goal achievement strategy. This encourages synergy between individual goals with larger organization-level objectives. Simply put, the alignment of goals helps create an energized atmosphere for everyone in the organization to achieve flawless execution.
Project Management System use OKR to achieve your goals effectively
Defined objectives and key results are the most sought-after framework used by modern-day performance management systems to achieve goals on time. The idea behind OKRs is simple. Individual goals are set in alignment with the organization’s goals to measure employee performance. This not only helps in transparency and accountability but also helps in goal attainment, nullifying the need to link performance management and constant feedback. This is the reason why most companies swear by keeping OKRs in their performance management system. According to a study published in the Harvard Business Review, companies with highly aligned employees are more likely to be top performers because it allows workers to focus their collective brainpower on reaching key milestones, generating a steady stream of insights and ideas along the way.
Turns your Managers into your mentors
An effective Performance management system turns the managers into mentors by shifting focus to enabling continuous employee development through feedback, valuable advice, and guidance through challenges, failures, and successes. The right mentor can do wonders for your employee’s career. as managers know firsthand all their team member’s goals, strengths, and abilities. This way, a performance management tool helps the manager give both feedback and guidance in the most constructive way.
Helps you effectively measure success periodically
Once the goals are clear, their performance indicators can be measured more precisely. Whenever the organization decides to perform the performance reviews (on a quarterly, monthly basis), it becomes easier for them to keep a finger on the pulse of how a company is operating and detect the early challenges (if any). This results in the flawless execution of the defined goals.
Helps in getting both Upward and Downward (360- degree) feedback
Upward and downward feedback or 360-degree feedback has been in the public domain since the 1950s, but now companies understand its undeniable benefits. 360-degree feedback gives a holistic view of the effectiveness of an employee along with the strengths and weaknesses. This type of feedback framework is called 360-degree as it helps employees receive feedback from their managers as well as their co-workers, reporting staff, and customers. 360-degree feedback gives employees all possible opportunities for self-assessment and career development opportunities.
Now, employees’ development and companies’ development go hand in hand. When employees receive feedback, they work together to achieve flawless execution.
Without a well-defined structure, performance within an organization is difficult at best, and impossible at worst. This is where a performance management system cracks the equation- by telling you what is needed at what time.
If companies and their changing priorities are to be believed, then a successful management process channels employee value, focus, and engagement.
Intrigued by how JOP can support your company to achieve flawless execution? Schedule a demo today.