Our organization is presently working on overhauling our performance management system. Not the technical side of it, the theoretical part. In brief, at the present time it does not accomplish it's two goals: Employee performance motivation and development (job clarity, employee development, etc.) and providing a basis for decision making (pay, promotions etc.).
I know what is wrong with it, now I would like to have a discussion with somone who has seen a PM system work really well.
If anyone has any best practices information they would like share I would appreciate it.
Thanks,
Avi

Interestingly the research and trends all reaffirm your initial findings - namely that performance management systems are not all they are cracked up to be, and (according to a recent study) less than 12% of employees felt the process actually helped them perform better, and in some cases worse.

While I cannot say I see a trend quickly moving away from the traditional approach, there is some new and innovative thinking that would suggest that ongoing coaching is a far more productive approach. When combined with a meaningful development process, the coaching approach does seem to work better - there is more constant feedback and correction, rather than waiting for the "big event(s)." Every experience I have ever had in working with people tells me that immediate feedback by a direct supervisor has more impact than nearly any other intervention, including some very fancy systems.

We've been trying to apply the work of these two authors, with some success:

Catalytic Coaching: The End of the Performance Review by Garold L. Markle
http://www.amazon.com/gp/product/1567203086/ref=nosim/0...890-1321629?n=283155

Grow Your Own Leaders, by Bill Byham
http://www.amazon.com/gp/product/013009398X/sr=1-1/qid=...1629?ie=UTF8&s=books

Turning the tide against outdated rituals can be very difficult, especially when they are so ingrained in organizational culture. The payoff in increased performance, however, is worth the overhaul!


Good luck

Thanks CGR!

What about the other part, decision making?
While the new models you mentioned focus on ongoing coaching as opposed to feedback at predetermined times, what about helping managers, HR and senior leadership make decision about promotions and compensation? The coaching models push towards more qualitative feedback. How can our organization improve the way that we link the decisions, which are more quantitative, to actual performance?
Thanks,
Avi

Dvshd99, I am interested in learning if you come across any performance management and/or compensation consultants that you recommend. We're also revamping these systems and are currently looking at a more objective based system, either Balanced Scorecard or Management by Objectives (MBO). Wondering if anyone has experience with these? Thanks.

We have not come across anyone we thought could really help further our objectives. In the end we are trying to make it work in house. It's tedious and requires involvement at all levels and cross-functionally, but so far so good.