Friday, August 28, 2015

Don't Miss the Woods for the Trees: Performance Management can drive right Behaviors

One objective of a good performance management framework is to drive the right kind of behaviors within various organizational entities.   How does this happen? By Setting Targets and Goals with qualifiers. Yes, the word qualifiers is to circumvent the proverbial  "fallen between the cracks"

It is important to emphasize both "how" and "why" aspects when setting goals and not just the focus on "what"
Take for example the highest achiever of sales in Pharma Co (name is irrelevant).  Here was Monty the highest grosser on sales.  For eight quarters he clocked over 40% growth each quarter and was the star salesman two years in a row.  About 9 months later when a new drug was launched by the competition the skeletons tumbled out of the cupboard.    Mohan used his smooth talking skills and network with stockists to off take and store more than they needed and the inventory went piling up finally leading to zero off take in two quarters when things got tough.

We don’t need to mention the fake invoice generation by “unscrupulous” employees to show higher sales.  This happens in various industries and google your way to “Billing Scams”

So if you are looking for good behaviors aligned to your organizations value system then you need to ensure the “desired behaviors” are brought into focus.  

This can be done through combination of the Performance Management and the Competency System.   The PMS should focus on the goals the “how” and “why” along with the “what”.   The managers should ensure that they anticipate how things can “Go Wrong” and discuss these with their teams in the process of setting goals.   

The competency framework should ensure that the behaviors of the competencies (managerial and leadership) do cover behavioral aspects of “how” apart from defining the core job related behaviors of the given role.

Focusing on just numbers,  targets and deliverables you might end up like the proverbial  missing the woods for the trees.


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