Performance Management: let’s simplify.

Rethinking performance management is a powerful way to crush your business goals and build a culture that thrives long-term.

The Ratings Riddle: A Recent Challenge

Many organizations grapple with the ratings question – to rate or not to rate? My recent client, deep in a turnaround, found themselves in this exact dilemma. When performance dips, it's natural for Talent Management pros to jump to a "transformation."

Ratings feel objective; we love that clean math! But let's be real, humans are messy and complex. We don't want to be boxed in by a number, and we often rebel against it. This client had even moved away from ratings in the past. That history really shapes the conversation. How do you reintroduce ratings when there are strong opinions and clear reasons for the previous shift? And is a turnaround the best time to bring them back? If so, how do we get employees on board?

Why This Matters: Culture Eats Strategy for Breakfast

Remember the golden rule: culture eats strategy for breakfast. Performance management isn't just a HR process; it's a vital tool that helps you achieve your organizational goals and, ultimately, your strategy.

So, what kind of culture do you need when you're turning a company around and pushing for higher performance? You need a win culture.

Action & Outcome: Building a Winning Team

To win, you need a team that understands how to win and genuinely wants to win together. Think of organized sports (I play hockey): it's about trusted partners who win and lose as one, guided by their coach. Without that "we win or lose together" mentality, a team is just a collection of individuals.

Knowing this, we moved past the ratings debate and focused on actions that led to greater commitment and engagement with performance management across the organization:

• Goals Co-Created: We involved leaders globally in the creation of organizational and team goals. This boosted engagement as leaders felt empowered to shape the agenda for increased performance.

• Leaders Empowered: Leaders received simple, applied training and practical tools to effectively cascade those goals to their teams.

• Impactful Conversations: We developed and coached leaders on how to lead quick, impactful feedback conversations with their teams on an ongoing basis (at least quarterly).

• Rewards Aligned: We aligned the compensation strategy to genuinely motivate teams towards those shared goals.

• Team Coaching: We implemented targeted team effectiveness work to help teams crush their stretch goals together.

Thinking about simplifying your next performance management "transformation"? Let’s talk.

Dr. Lena