A sea change in talent strategies is under way.
The digital age is causing companies across the globe to dramatically change their strategies for leadership, talent, and human resources. As they struggle with leadership, engagement, and capability challenges, they are realizing that the performance management process affects all of them and they are re-inventing it at pace.
The Deloitte University Press Global Human Capital Trends Survey 2015 survey shows that of the 3,300 organisations in 86 countries surveyed, 89% have recently changed their performance management process or are planning to do so within the next 18 months.
Traditional performance management is broken
It is now widely realised that traditional performance evaluation that looks backwards at what has already been done and focuses on ratings no longer contributes to the leadership, engagement, and capability challenges facing today’s organisations. In many cases, it makes them worse.
Addressing the big issues is urgent – the race is on!
The 2015 Deloitte survey showed that across all sectors and geographies the biggest challenges to delivering business results have become urgent. READ MORE
The survey showed that the biggest challenges to delivering business results today are:
- Culture and Engagement to retain and commit key talent. This is the most important issue facing companies around the world. In an era of heightened corporate transparency, greater workforce mobility, and severe skills shortages, culture, engagement, and retention have emerged as top issues for business leaders.
- Leadership gaps. There is a growing need to develop leaders at all levels. Over the past year businesses fell further behind in developing their leadership pipeline
- Learning and Capability Development. Skill shortages are holding back strategy execution.
Each of these challenges has a very significant impact on business results and performance management is the common denominator that underpins and affects them all. It is now clear that organisations that do not make this change quickly will be left behind.
Performance management is being re-invented
New performance management is an innovative, agile, forward looking process that improves employee engagement and drives business results. READ MORE
The world of work has changed dramatically. Never has there been a greater need for certainty that goals will be delivered when less is available. The business environment changes constantly and continuously. The way goals were planned to be delivered when they were set is almost always different to what actually gets done to deliver them.
Performance management needs to focus on looking forward, assessing what has changed and adapting what has to be done to deliver the goals in spite of the changes.
Organisations are now re-defining the way they set goals and evaluate performance, focusing heavily on coaching, feedback and capability development.
The focus is now on:
- agile goal setting and conversation
- regular feedback from others on what is working, what is not, what has to be done and what has to change
- coaching and development to build capability and grow the capacity to deliver
As Jeff Immelt, Chairman and CEO of General Electric said in an interview with Mckinsey & Co in October, 2015:
“"We’ve basically unplugged anything that was annual. The notion is that, in the digital age, sitting down once a year to do anything is weird, it’s just bizarre. So whether it’s doing business reviews or strategic planning, it’s in a much more continuous way. We still give a lot of feedback. We still do a lot of analysis of how you’re performing. But we make it much more contemporary and much more 360-degree. So somebody can get interactions with their boss on a monthly basis or a quarterly basis. And the data you get is being collected by your peers, the people who work for you, in a much more accurate and fluid way".
The right cloud-based tools are essential
Companies have found they need the right tools to make performance management easier, quicker and more agile. Frequent, high quality, focused reviews must be able to be done quickly and must not be a time burden. You cannot do this with a paper based system. READ MORE
The requirements are:
- a cloud based performance management tool which provides flexibility and agility
- the tool must enable employees to share their goals, provide feedback and recognition to others online and set up a constructive conversation around performance
- it must engage people and capture their imagination. Its value to them must be obvious. It must look great, be intuitive, be easy to learn and use and even ‘gamify’ the performance management process to make it more productive and useful
Mariner7 meets all these requirements
- It is quick to set up, very cost effective and there are no IT, set up or support costs – just a licence fee for each user
- It is a scalable, proven system used by large organisations and big brands as well as medium and smaller organisations
The trend is clear and you can’t afford to miss it
- Want to improve profit and shareholder returns?
- Need more certainty that key results will be delivered?
- Need to re- focus your business on critical strategic, delivery or competitive issues?
- In an industry experiencing disruptive change?
- Need people to think differently or to become more engaged and committed?
- Do not have the talent required to deliver your growth strategy?
You need the right tools and the people who know how to get the most out of them.
Call Brian Shaw on +64 (0)21 406 408 or email firstname.lastname@example.org for a no obligation discussion. We have the experience and are here to help.