Two-thirds report the implementation of at least one meaningful modification to their performance-management systems in the past 18 months. In fact, more than half of respondents believe performance management has not had a positive effect on employee or organizational performance (Exhibit 1).Īccordingly, many respondents say their companies are making changes. Please email us at: the whole, respondents express doubt that their current performance-management systems foster strong performance. If you would like information about this content we will be happy to work with you. We strive to provide individuals with disabilities equal access to our website. Disappointed and seeking to improve quickly To ensure that perception, managers should master three critical practices: linking individuals’ goals with business priorities, coaching effectively, and differentiating compensation across levels of performance. They want a process that differentiates without false precision, that is both forward- and backward-looking, that happens far more frequently than once a year (but not so much as to create feedback fatigue), that involves an honest, two-way conversation, that is based on more data and input than just the boss’s view, that considers not just what was achieved, but also how, and links rewards and consequences to performance.” For more, see Scott Keller and Mary Meaney, Leading Organizations: Ten Timeless Truths, first edition, London: Bloomsbury Business, 2017. As McKinsey’s Scott Keller and Mary Meaney write in Leading Organizations: Ten Timeless Truths, “We believe people aren’t against being evaluated, and, in fact, they want to know where they stand. Our analysis indicates that the key to reaping positive business outcomes from performance management is to establish a system that employees and managers perceive as fair.

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