Strategic Human Capital Insights

Is it Time to Review Your Performance Review?

1/7/20 10:00 AM


Close up Two Happy Young Businesswomen at the Office Talking About Business Report on Paper.Like everything else in business today that is undergoing constant growth and change, the strategic review of the Performance Review process is not exempt. Too often, outdated, irrelevant performance review forms, which drive the performance review process, are kept in place without question.  However, this form should be in a state of constant review, since strategically-aligned performance is critical to any high-growth organization.

As often as your strategy is reviewed, that’s how often your performance review form should be reviewed, as well.  Why?  The accompanying job description will likely be evolving and / or completely changing.  And, as new skills are required to perform a task, these new skills and competencies must be reevaluated, as well.

A Typical Example 

A paper-intensive and manual ordering process has been replaced by a software application that virtually eliminates paper from the process.  This will allow orders to bypass the customer service department and move directly into the fulfillment department.  Only exceptional cases will now be handled by the customer service department.  The clerical function of routinely double checking for correct orders and sales tax has been replaced by software.  Four things will happen:

  1. An entire routine function from the old job description will be eliminated
  2. Employees in the customer service department will need to learn and become highly proficient with the new software application as a skill
  3. Employees will need to learn how to resolve the exceptional issues that cannot be handled by the software application
  4. With a former time-consuming function virtually eliminated, the customer service department will have additional capacity to learn new skills to handle more complex customer service issues that the department didn’t have time for before


All four of the above issues demand that a new job description be written to capture the new job responsibilities.  In addition, as new skills and competencies are required for the role, a review of the current performance review process and form needs to be addressed to ensure that the right skills and competencies are being evaluated.  This review process should also determine if the current performance review form captures the issues of company culture, growth and accountability across functions. 

A recent review of the performance review process has resulted in the addition of the following four topics to the current performance review form:

1. Organizational Skills and Competencies

  • Enterprise Thinking
  • Customer Experience
  • Problem Identification and Problem Solving
  • Critical Thinking
  • Collaboration and Adaptability
  • Innovation
  • Accountability
    • Within the department

    • Across functional lines
  • Complex Communication Skills
    • Written

    • Oral

    • Presentation


2. Key Interactions Across Functional Lines – The Matrix Review

A shortened review form has been developed that will evaluate employees who must work and be accountable across functional organizational lines.  


3. Outstanding Contribution to the Enterprise (beyond the routine job)


4. Stretch Goals for 2020

 

With all the change that is going on in your organization, is it time for you and your organization to review its performance review? 

What critical organizational issues should you consider as you optimize the process of managing human capital? Download our 2020 Human Capital Checklist, which highlights the critical issues for your organization to regularly evaluate. You can also schedule a complimentary assessment with a member of our team.

Download the 2020 Human Capital Checklist

 

Topics: human capital, Human Resources, human asset management, performance management, performance review

Posted by Joanne Flynn

Joanne Flynn

In 2014, Joanne Flynn founded Phoenix Strategic Performance, a strategic human capital advisory firm. Prior to this, Joanne was Vice President at Goldman Sachs for 10 years responsible for global learning and development. She then led the consulting practice of Phoenix Group International, a consulting firm specializing in global financial service. Joanne is now taking best practices from the people-intensive financial services industry and adapting those best practices to startup and growth businesses. She is a thought leader in the areas of strategic organizational alignment, organizational agility, human capital gap analysis, leadership challenges for the new workplace and transformation leadership.

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