There is a revolution happening in Performance Management. It is easy to see at corporate leaders like Adobe, IBM, Microsoft, Deloitte, Accenture, GAP, and General Electric, but the revolution is happening everywhere.
It is not about new HR strategies, in fact it is not even being driven by HR. The revolution is being driven by employees. The traditional end-of-year performance review has not fit with modern company and employee goals for many years now and employees are demanding a change.
A Deloitte manager described their old review process as “an investment of 1.8 million hours across the firm that didn’t fit our business needs anymore.”
Accountability vs Growth
Performance management can go one of two ways. You are either putting structure in place to force accountability (Jack Welch asking the bottom 10% to leave) or you are creating an environment that helps employees grow. If you have a once-a-year process that emphasizes financial rewards and punishments, whether you want to or not you are focusing on holding people accountable for past behavior rather than improving current and future performance.