Recently I reviewed a five page performance appraisal tool used by a software company that they believed was excellent, and they couldn’t understand why very few people were using the tool. I brought up the notion of Dynamic appraisals vs. Static appraisals. Static is a one off event completed to cover compensation issues. Dynamic is an evolutionary process that is nurtured and grows more like an organism that adapts to the business, market and behaviors.
After our discussion they started asking a lot of interesting questions; How do we get folks to adopt a dramatic approach rather than a check box approach? Can HR be the drivers of the adoption? What role should business leaders play?
These are the right questions that need to be asked, and now they are turning the tide by facilitating business adoption through aligning business leaders to competency drivers that bring out optimal performance. Optimal performance is getting people focused on their strengths and designing functional areas so that the collection of individual skills are stronger than any single individual. In other words, creating synergy that drives the business based on KSAs that are motivated and dynamic rather than static.
Static drivers create status quo performance, and aren’t very measurable. Dynamic drivers are immediately impacted by the market, competitors, economy, etc. We can prepare for changes, ie: gas prices increasing, and have contingency plans. Building performance management systems that focus on dynamic business processes will allow an organization to have more dynamic focus on growing the business rather than maintaining it.
Does this make sense? Is it just easier to manage performance by static events? Can anyone share an example where the business drives Dynamic Performance Management?
Please let me know your thoughts.
- Nat Boughton