The objective of performance management is to do more than find areas of improvement. It is to finetune a process or system that will push employee performance to higher levels. In an ideal scenario, you will have every employee across various departments performing at a uniform and consistently high level. But that is the ideal. What is more realistic is to establish a standard of work that employees strive to meet. While there may still be varying degrees of high performance, the growth can be consistent across the board with a robust performance management model.

This blog discusses the different performance management models and the importance of a model that will drive high growth in an organization.

What is a Performance Management Model?

A performance management model is a systematic process that organizations use to evaluate and improve employee performance. The model includes: 

• Setting performance standards.
• Assessing employee performance against those standards.
• Providing feedback.
• Taking corrective action when necessary.

Organizations implement performance management models to improve employee productivity and motivation and to identify and address performance problems. An organization’s chosen model should be aligned with its business goals and values. When selecting a performance management model, organizations should consider its complexity, the training and resources required to implement it, and its compatibility with the organization’s culture.  

Managing employees will have a few grey areas as it deals with a human quotient, and people are individuals with unique attributes and ambitions. Getting them to work together cohesively to achieve the work standards is the challenge employers take up to move their organization to where they want it to go. Implementing a performance management model is the first step, as it will help set goals, offer a structured review and continuous feedback process, and determine areas of improvement. Additionally, the model will have to be focused on planning and progression to benefit the organization and empower the employees.  

What is a High-growth Performance Model?

A high-growth performance management model is a system that helps organizations identify and track the key indicators that lead to high levels of growth. The model also provides a framework for setting goals and measuring progress. Simply put, the model identifies four key areas that are essential for high levels of growth:  

• Strategy: Organizations must have a clear and well-defined plan for development.
• Execution: Organizations need to be able to execute their growth strategy effectively.
• Culture: Organizations need to have a culture that supports and encourages growth.
• Leadership: Organizations need strong and effective leadership to drive growth.

However, it is only an overview, as each area has various steps. The modern performance management model works with the employees through short cycles of goal-setting, reviewing, and frequent feedback to stay on course. With organizations’ objectives set in OKRs (Objectives and Key Results), the high growth model helps create goals for each objective and the desired key results. When the review cycle is shorter, managers find it easier to steer their employees in the right direction, and the employees remain focused. Furthermore, the employees are included in the OKRs with their personal goals and know how to explore higher growth opportunities.   

Evolution of the High-growth Performance Management Model

There are four types of performance management models: 

Traditional model 

The traditional model has been in practice for decades and typically works well in a large enterprise with high employee retention. It is more to do with getting an annual review done and focused on assessing employee performance throughout the year. However, it is possible that employees and the goals they were assigned fall through the cracks in 12 months.  

Bi-annual 

If you divide the traditional model into two parts, you get the bi-annual performance management model. Employees get evaluated every six months, and the focus is on a shorter evaluation cycle and employee growth. It can include rewards at the half-year mark to keep employees motivated for the 2nd half. Still, the process is not without stress and can be time-consuming for HR.  

Project-based 

Here, employees are assessed project by project. It starts at the beginning of a project with project-specific goals and milestones. Employees are also evaluated on their performance within the project’s context, while larger projects may get divided into shorter cycles based on the duration and complexity. 

High growth model 

The high-growth performance management model is new and hybrid. It keeps the annual or bi-annual objectives in mind while breaking them down into more frequent and periodic assessments. It allows the managers to review the progress and revise goals if necessary. It helps refresh the page, so to speak, as employees see if they are going off-track. Shorter monitoring periods allow employers to provide frequent feedback and keep employees energized and motivated.  

Our focus in this blog is the new high-performance management model. Therefore, let’s discuss the five primary elements in this model – planning, goal-setting, monitoring, reviewing, and rewarding, which makes it clear that it is time to adopt this modern model.

 

Five stages of High growth Performance Management Model

Planning 

Planning ties in with the strategy adopted by the leadership for consistent growth. Planning comprises a clear view of what the managers and employees expect to accomplish. However, it is not written in stone and can be modified as circumstances change, thereby keeping it flexible.  

Goal-setting 

We can’t emphasize enough on goal-setting. It is a way to strive for tangible and measurable goals, motivating employees to keep up their performance on every level, i.e., the SMART mode of setting specific, measurable, achievable, relevant, and time-bound is vital to employee engagement and growth. You want to set goals that measure up to defined metrics, are realistic and aspirational but not overly ambitious, and remain relevant to the individual’s skill set and the project, with clear timelines on when each milestone should be achieved. Remember, there is no room for rigidity, and frequent assessment of goals is a MUST. 

Monitoring and tracking 

How else would you know if the employees are on track with the previously mentioned SMART goals? You need a system that helps track each employee’s pursuit of goal-specific success. There are different ways to implement monitoring, and these will depend on the system in use. However, monitoring helps by providing checks and balances in the journey. It focuses on how everyone operates to meet their time-bound goals with clear metrics. Moreover, the effectiveness of the goal-setting process will become apparent within the first few instances of monitoring and can be addressed immediately.  

Performance reviews 

There will inevitably be ups and downs and days when motivation is lower than one would like. When reviews are done more frequently and include self-assessment, peer reviews, and input from managers, you get an impartial, fair, and holistic review. Performance reviews must foster growth and leave employees feeling positive that their contributions matter. It will keep them committed and engaged as they move on to the next goal and the next. The aim is to uplift and not diminish one’s effort.  

Recognition and rewards 

Reviewing performance must go hand-in-hand with recognition and well-timed rewards to keep motivation and engagement levels consistently high. There are multiple ways to ensure that no employee feels unnoticed or undervalued. Rewards may include promotions, higher pay, or a public call-out with specific mention of the employee’s contribution.

To wrap up

It is time for organizations to gravitate toward the high-growth performance model for one simple reason – it is employee-centric without losing sight of the organizational OKRs. Organizations are under constant pressure to do more with less to stay competitive. They need to improve performance and find new ways to motivate employees continuously. And today’s employees need the challenge, and like to know that the organization is invested in their growth. The high-growth performance management framework is designed to ensure a win for employees and the organization.

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Also read: 15 Ways to Foster and Sustain a High Performance Culture

Also Read: Why is Performance Management Important?