{"id":4244,"date":"2018-05-01T08:00:50","date_gmt":"2018-05-01T15:00:50","guid":{"rendered":"https:\/\/bwblogdev.wpengine.com\/?p=4244"},"modified":"2021-10-06T01:08:35","modified_gmt":"2021-10-06T08:08:35","slug":"mckinsey-shares-their-3-silver-bullets-of-performance-management","status":"publish","type":"post","link":"https:\/\/www.betterworks.com\/magazine\/mckinsey-shares-their-3-silver-bullets-of-performance-management\/","title":{"rendered":"McKinsey Shares Their 3 Silver Bullets of Performance Management"},"content":{"rendered":"

Remember the golden rule? Do unto others as you would want to have done to you. We all learned this principle as toddlers, but it\u2019s still just as useful today because Fairness is a cornerstone of good performance management, as McKinsey\u2019s <\/span>Global Survey<\/span><\/a> shows.<\/span><\/p>\n

When employees perceived their company’s performance management program as fair, it works better, and the company benefits. Sixty percent of respondents at companies with effective performance management programs reported outperforming their competitors over the past three years \u2013 <\/span>that\u2019s 3x the rate of companies with ineffective programs<\/b>.<\/span><\/p>\n

McKinsey\u2019s research quantifies what forward-thinking HR leaders have long known: The most effective programs aren\u2019t once a year reviews but are linked to corporate priorities, supported by ongoing coaching, feedback and development, and ensure top performers are identified and rewarded. <\/span><\/p>\n

Here are McKinsey\u2019s three silver bullets for effective performance management:<\/span><\/p>\n

1. Link individual goals to company priorities<\/span><\/h2>\n

It almost seems too obvious to state, but companies work best when everyone works toward the same goals. Yet in practice, achieving alignment can be elusive. <\/span><\/p>\n

A 2015 survey by Harris Interactive and Franklin Covey reported that only <\/span>2 in 10 employees<\/span><\/a> had a clear idea of how their tasks and goals align with the business\u2019 top priorities. And a 2017 survey by Deloitte and Facebook found that <\/span>only 23 percent<\/span><\/a> of businesses believe their employees are fully aligned with their corporate purpose.<\/span><\/p>\n

Given those stats, your organization probably suffers from at least some alignment disconnect as well. To correct this, corporate priorities need to be visible and transparent to every leader, manager, and employee. And, given the pace at which things change today, goals need to be revisited more than once per year. The McKinsey study found that 62 percent of companies with effective programs revisit their goals more than twice per year \u2013 sometimes even on an ad-hoc basis.<\/span><\/p>\n

Many of the best programs use technology to ensure goal visibility and alignment. BetterWorks gives visibility – \u00a0company-wide – to everyone\u2019s goals where everyone can see how top corporate priorities <\/span>cascade down into team and personal goals<\/span><\/a>. Individual contributors can see how their efforts contribute to the greater good and can connect with others across functions who are working toward the common objective.<\/span><\/p>\n

2. Effective coaching from managers<\/span><\/h2>\n

Managers are tremendously important to employee performance and engagement. Data from <\/span>Gallup\u2019s State of the American Manager<\/span><\/a> confirms this: Managers account for up to<\/span> 70 percent of the variance<\/span><\/a> in their employees’ engagement. <\/span><\/p>\n

And while many managers <\/span>think<\/span><\/i> they are effective coaches, <\/span>the data shows<\/span><\/a> that most are not. This is especially true of <\/span>managers in their first managerial roles<\/span><\/a> where the majority did not receive training or ongoing mentoring on how to be a good manager themselves. <\/span><\/p>\n

The way HR and leadership can improve the quality of your managers\u2019 coaching is to a) ensure that conversations between managers and employees are actually happening, and b) provide them with prompts for good questions to ask and feedback to give. Here are two ways companies can do this at scale:<\/span><\/p>\n