{"id":91178,"date":"2023-05-23T06:45:08","date_gmt":"2023-05-23T13:45:08","guid":{"rendered":"https:\/\/www.betterworks.com\/?p=91178"},"modified":"2023-09-12T05:06:35","modified_gmt":"2023-09-12T12:06:35","slug":"reimagine-performance-management-to-make-work-better","status":"publish","type":"post","link":"https:\/\/www.betterworks.com\/magazine\/reimagine-performance-management-to-make-work-better\/","title":{"rendered":"Why It\u2019s Time to Reimagine Performance Management to Make Work Better"},"content":{"rendered":"\n<div class=\"wp-block-ht-block-toc is-style-contrasted htoc htoc--position-wide toc-list-style-plain\" data-htoc-state=\"closed\"><span class=\"htoc__title\"><span class=\"ht_toc_title\">Table of Contents<\/span><span class=\"htoc__toggle\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"16\"><g fill=\"#444\"><path d=\"M15 7H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><path d=\"M15 1H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1zM15 13H1c-.6 0-1 .4-1 1s.4 1 1 1h14c.6 0 1-.4 1-1s-.4-1-1-1z\"><\/path><\/g><\/svg><\/span><\/span><div class=\"htoc__itemswrap\"><ul class=\"ht_toc_list\"><li class=\"\"><a href=\"#h-change-or-perish\">Change or perish<\/a><ul class=\"ht_toc_child_list\"><li class=\"\"><a href=\"#h-what-s-the-problem-with-traditional-performance-management\">What\u2019s the problem with traditional performance management?<\/a><\/li><li class=\"\"><a href=\"#h-what-is-performance-enablement\">What is performance enablement?<\/a><\/li><li class=\"\"><a href=\"#h-why-performance-enablement-now\">Why performance enablement now?<\/a><\/li><\/ul><\/li><li class=\"\"><a href=\"#h-achieving-the-performance-enablement-mindset\">Achieving the performance enablement mindset<\/a><\/li><li class=\"\"><a href=\"#h-ceos-and-chros-are-a-team\">CEOs and CHROs are a team<\/a><\/li><li class=\"\"><a href=\"#h-a-changing-world-demands-reimagining-work\">A changing world demands reimagining work<\/a><\/li><\/ul><\/div><\/div>\n\n\n\n<p>Editor\u2019s note: <a href=\"https:\/\/www.makeworkbetter.com\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Make Work Better: How Great Bosses Lead, Give Feedback, and Empower Employees<\/em><\/a><em>, co-authored by Betterworks CEO Doug Dennerline and Betterworks VP of HR Transformation, Jamie Aitken, releases today.&nbsp;<\/em><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>What comes to your mind when you think of the word \u201cborders?\u201d Probably not the powerhouse bookshop \u2014 yes, an actual bookshop, not your computer \u2014 that was <em>the<\/em> place to go for books in the 1990s and early 2000s. At its zenith in 2003, Borders had over 1,200 stores operating under the Borders and Waldenbooks brands. Three short years later was the last time it was profitable. By early 2011, Borders had filed for bankruptcy.&nbsp;<\/p>\n\n\n\n<p>What does this have to do with performance management?&nbsp;<\/p>\n\n\n\n<p>It\u2019s a cautionary tale. Perhaps a wake-up call. Borders failed to reinvent itself for the Internet. Preoccupied with mismanagement issues and lacking the foresight to understand how the world was fundamentally changing, Borders was too late to react to the shift to online shopping. Amazon ate it for lunch.<\/p>\n\n\n\n<p>Similarly, many organizations are failing or lagging in efforts to rethink the way they do performance management. A Luddite is someone who resists change, often new technology. But it has a broader meaning: It is the concept of taking a mindless approach toward keeping current technology without change. And this, unfortunately, perfectly describes the approach to performance management that so many companies take today \u2014 even those who have tried to make some changes at the edges.<\/p>\n\n\n\n<p>\u201cWhether we\u2019re aware of it or not,\u201d say Doug Dennerline and Jamie Aitken, authors of the just-released book,<em> <\/em><a href=\"https:\/\/www.makeworkbetter.com\"><em>Make Work Better: How Great Bosses Lead, Give Feedback, <\/em><\/a><em><a href=\"https:\/\/www.makeworkbetter.com\" target=\"_blank\" rel=\"noreferrer noopener\">and<\/a><\/em><a href=\"https:\/\/www.makeworkbetter.com\"><em> Empower Employees<\/em><\/a>, \u201cthe change we\u2019re undergoing will be just as disruptive as Amazon was to millions of businesses worldwide. If we don\u2019t reinvent the processes around how we manage people, the same thing that happened to Borders can happen to companies all around the world.\u201d<\/p>\n\n\n\n<p>Doug, the CEO of Betterworks, and Jamie, the VP of HR transformation, know a thing or two about how to lead organizations successfully through change. Together, they wrote the book as a practical guide with plenty of real-world success stories of modern performance management \u2014 what Betterworks calls \u201cperformance enablement\u201d \u2014 to serve as that wake-up call.<\/p>\n\n\n\n<p>The book is available on Amazon (of course), Barnes &amp; Noble, Bam! Books-a-Million, Indie Bound, Porchlight, and bookshop.org.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p id=\"htoc-the-change-we-re-undergoing-will-be-just-as-disruptive-as-amazon-was-to-millions-of-businesses-worldwide-if-we-don-t-reinvent-the-processes-around-how-we-manage-people-the-same-thing-that-happened-to-borders-can-happen-to-companies-all-around-the-world\"><strong>The change we\u2019re undergoing will be just as disruptive as Amazon was to millions of businesses worldwide. If we don\u2019t reinvent the processes around how we manage people, the same thing that happened to Borders can happen to companies all around the world.<\/strong><\/p>\n<cite>\u2014 Excerpt, Make Work Better<\/cite><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-change-or-perish\">Change or perish<\/h2>\n\n\n\n<p>How people work, think about work, and expect from work has not only changed, but that change has accelerated, partly due to the pandemic. Employees want convenience, a lack of friction in getting work done, flexibility, a sense of belonging, and to be trusted, valued, and appreciated. Work is no longer viewed as a contract but as a relationship. Truthfully, it has always been a relationship, albeit often a poorly functioning one. The Great Resignation, quiet quitting, and low levels of engagement are simply the rotten fruits of an approach that has long suffered dysfunction.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"289\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2020\/11\/CBOARD_Case_Study_Hero-1024x289.jpg\" alt=\"CBOARD\" class=\"wp-image-68848\" srcset=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2020\/11\/CBOARD_Case_Study_Hero-1024x289.jpg 1024w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2020\/11\/CBOARD_Case_Study_Hero-300x85.jpg 300w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2020\/11\/CBOARD_Case_Study_Hero-768x217.jpg 768w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2020\/11\/CBOARD_Case_Study_Hero.jpg 1178w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>The difference now: After a time of global cathartic change and in an era of talent scarcity, employees are saying \u201cno more\u201d en masse. Like the fictional character Howard Beale in the movie Network, they\u2019re saying, \u201c<a href=\"https:\/\/www.youtube.com\/watch?v=zLO5IZcNOXg\" target=\"_blank\" rel=\"noreferrer noopener\">I\u2019m as mad as hell and I\u2019m not going to take this anymore<\/a>!\u201d What\u2019s more, a new generation of workers, Gen Z, does not view work the same way other generations preceding them.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-s-the-problem-with-traditional-performance-management\">What\u2019s the problem with traditional performance management?<\/h3>\n\n\n\n<p>Traditional performance management with the foundation of an annual performance review was the brainchild of the U.S. War Department after World War I. Its goal was to measure officer efficiency and rank people to <em>decrease<\/em> the number of promotions. Many officers performed well \u2014 too many, apparently. The government decided there needed to be a \u201cdistribution\u201d method, which essentially amounted to ranking officers and denying many the recognition and advancement they deserved.&nbsp;<\/p>\n\n\n\n<p>It has morphed over the years, most famously by former GE honcho Jack Welsh, who celebrated the annual performance review and subsequent ranking system that awarded top performers. While performance management has taken a softer turn more recently, it still marches in step with its founding principles. It is also backward-looking by nature and compliance-driven by necessity.&nbsp;<\/p>\n\n\n\n<p>\u201cTraditional performance management rewards the top 20% of the workforce, dispels the 10% who are considered low performers, and forgets about the other 70% of employees, whose contributions are important to the organization,\u201d Doug says. \u201cWorst of all, it doesn&#8217;t improve performance.\u201d<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"304\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2020\/08\/Engagement_Background_Hero_-1024x304.jpg\" alt=\"\" class=\"wp-image-67980\" srcset=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2020\/08\/Engagement_Background_Hero_-1024x304.jpg 1024w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2020\/08\/Engagement_Background_Hero_-300x89.jpg 300w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2020\/08\/Engagement_Background_Hero_-768x228.jpg 768w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2020\/08\/Engagement_Background_Hero_-1536x456.jpg 1536w, https:\/\/www.betterworks.com\/wp-content\/uploads\/2020\/08\/Engagement_Background_Hero_.jpg 1555w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><a href=\"https:\/\/www.betterworks.com\/state-of-enablement-report-2023\/\">Betterworks 2023 State of Performance Enablement <\/a>report, a global survey of over 2,000 employees globally, revealed that 64% see the performance review process as a waste of time, and 37% give it a failing grade. The report also showed that trust in HR, organization leadership, and managers drops dramatically by 2x-4x when employees view performance management as a failure.<\/p>\n\n\n\n<p>Imagine where we might be today if the War Department had taken a different approach a century ago and decided it would be better to enable even higher efficiency, more innovation, and productivity and help its officers continue to excel every day.<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p><strong><em>\u201cTraditional performance management rewards the top 20% of the workforce, dispels the 10% who are considered low performers, and forgets about the other 70% of employees, whose contributions are important to the organization. Worst of all, it doesn&#8217;t improve performance.\u201d<\/em><\/strong><\/p><cite>\u2014 Doug Dennerline<\/cite><\/blockquote><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-performance-enablement\">What is performance enablement?<\/h3>\n\n\n\n<p>People don&#8217;t want to have their performance managed \u2014 and many don&#8217;t need it. They want to be enabled.<\/p>\n\n\n\n<p>A modern performance enablement solution is \u201cone that moves away from the outdated concepts of hierarchy and control, instead adopting a framework that places employees\u2019 needs at the center. It gives employees the opportunity to create meaningful developmental goals that align with their company\u2019s strategic goals and equips managers to frequently coach and enable employees \u2014 rather than dictate and evaluate,\u201d Doug and Jamie explain in the book.<\/p>\n\n\n\n<p>It is forward-looking, timely, continual, and a surprisingly light lift for employees and managers. It also gives managers the tools and resources to properly coach employees for performance and career development. This, in turn, instills confidence in employees and leads to greater discretionary effort and better overall well-being.<\/p>\n\n\n\n<p>\u201cPerformance enablement is a virtuous cycle of better business results and employees who are more satisfied, productive, and engaged,\u201d Jamie says.<\/p>\n\n\n<div class=\"lazyblock-recommendedread-Z2gGc9P align  wp-block-lazyblock-recommendedread\">        <div class=\"recommended-read-notice\">Recommended Read<\/div> \n        <div class=\"recommended-read-box\">\n            <div class=\"recommended-read-image\">\n                <img decoding=\"async\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/04\/7-Steps-to-Overcoming-Middle-Manager-Burnout-Thumbnail.jpg\" alt=\"\">\n            <\/div>          \n            <div class=\"recommended-read-text\">\n                <div class=\"recommended-read-categories\"><a href=\"https:\/\/www.betterworks.com\/magazine\/category\/vantage-point\/betterworks-insights\/\">Betterworks Insights<\/a> | <a href=\"https:\/\/www.betterworks.com\/magazine\/category\/vantage-point\/manager-enablement\/\">Manager Enablement<\/a><\/div>\n                <div class=\"recommended-read-title\">7 steps to overcoming middle manager burnout<\/div>\n                <div><a class=\"recommended-read-cta\" href=\"https:\/\/www.betterworks.com\/magazine\/overcoming-middle-manager-burnout\/\">Read Now<\/a><\/div>\n            <\/div>\n        <\/div>\n        <\/div>\n\n\n<h3 class=\"wp-block-heading\" id=\"h-why-performance-enablement-now\">Why performance enablement now?<\/h3>\n\n\n\n<p>Agility and the ability to continually innovate are vital to thriving in the constant state of flux that every organization now experiences. And it&#8217;s true today more than ever, especially with the widespread adoption of generative AI and the blindingly fast changes it is unleashing.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p><strong><em>\u201cPerformance enablement is a virtuous cycle of better business results and employees who are more satisfied, productive, and engaged.&#8221;<\/em><\/strong><\/p><cite>\u2014 Jamie Aitken, VP of HR Transformation, Betterworks<\/cite><\/blockquote><\/figure>\n\n\n\n<p>Survival will depend on cultivating an engaged, committed workforce that can see and pivot instantaneously to new opportunities. This requires multiple components that work like a system of interconnecting, well-greased gears turning in sync.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"972\" height=\"1024\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/05\/Book-Release-Blog-Internal-1-1-972x1024.jpg\" alt=\"\" class=\"wp-image-91215\"\/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>You don\u2019t want to introduce \u201ccontaminants\u201d that gum up the gears, such as confusion over goals and how to measure success or the inability to see where the organization is headed. Other factors that cause damage to the gears include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Employee turnover<\/li>\n\n\n\n<li>Toxic work cultures where employees experience a lack of fairness, care, and inclusion<\/li>\n\n\n\n<li>Bias, whether unintentional or structural (such as with traditional performance management)&nbsp;<\/li>\n\n\n\n<li>Stress and burnout<\/li>\n\n\n\n<li>Focusing on tactical initiatives rather than being guided by a strategy (i.e., long-term goals and a plan to achieve them)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-achieving-the-performance-enablement-mindset\">Achieving the performance enablement mindset<\/h2>\n\n\n\n<p>Changing from a closed and opaque system (traditional performance management) to an open process with frequent communication, transparency, and accountability (performance enablement) can be challenging for some employees.<\/p>\n\n\n\n<p>\u201cLet\u2019s face it, change is hard,\u201d Doug says.<\/p>\n\n\n\n<p>People can be resistant, but when employees and managers understand the benefits and experience the impact, and have the choice to opt-in, they\u2019re far more likely to want to participate. There are also many ways, including gamification, to teach, promote, and instill the behaviors that make a performance enablement transformation successful.<\/p>\n\n\n\n<p>When employees and managers are brought into the design process as stakeholders, communications are clear, and transformation has strong support from leadership, organizations are well on their way to success. A partner with expertise in change management and who works with its customers to help them optimize their performance enablement processes is as essential to the success of the transformation as the technology itself.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Before any of this can happen, however, the CEO and CHRO need to have the right mindset.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ceos-and-chros-are-a-team\">CEOs and CHROs are a team<\/h2>\n\n\n\n<p>Transforming the way people work requires the CEO and CHRO to work together as equal partners. Remaining competitive is about having the right people with the right skills at the right time.&nbsp;<\/p>\n\n\n\n<p>\u201cThe only way to remain competitive is to have a CHRO beside you who can help you empower your company\u2019s most important resource \u2014 people,\u201d Doug says. \u201cThe right leader in an organization can give you the competitive edge you need and can be a game-changer.\u201d<\/p>\n\n\n<div class=\"lazyblock-recommendedread-Z2kjXjV align  wp-block-lazyblock-recommendedread\">        <div class=\"recommended-read-notice\">Recommended Read<\/div> \n        <div class=\"recommended-read-box\">\n            <div class=\"recommended-read-image\">\n                <img decoding=\"async\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/03\/6-Signs-Its-Time-for-CEOs-to-Replace-their-CHROs-Thumbnail.jpg\" alt=\"\">\n            <\/div>          \n            <div class=\"recommended-read-text\">\n                <div class=\"recommended-read-categories\"><a href=\"https:\/\/www.betterworks.com\/magazine\/category\/vantage-point\/betterworks-insights\/\">Betterworks Insights<\/a> | <a href=\"https:\/\/www.betterworks.com\/magazine\/category\/vantage-point\/hr-leadership\/\">HR Leadership<\/a><\/div>\n                <div class=\"recommended-read-title\">6 Signs It\u2019s Time for CEOs to Replace Their CHROs<\/div>\n                <div><a class=\"recommended-read-cta\" href=\"https:\/\/www.betterworks.com\/magazine\/signs-its-time-for-ceos-to-replace-their-chros\/\">Read Now<\/a><\/div>\n            <\/div>\n        <\/div>\n        <\/div>\n\n\n<p>The best CHROs establish a true partnership with their CEOs and everyone on the board. They also keep an ear to the ground to understand what\u2019s happening in all parts of the business so they can enlighten the CEO about human-centered issues.&nbsp;<\/p>\n\n\n\n<p>\u201cGreat CHROs will constantly ask questions and challenge assumptions,\u201d Jamie says. \u201cThey are not afraid to challenge the CEO when needed and will hold up a mirror to remind him or her of what the goals are.\u201d<\/p>\n\n\n\n<p><\/p>\n\n\n<div class=\"lazyblock-recommendedread-1n8kU6 align  wp-block-lazyblock-recommendedread\">        <div class=\"recommended-read-notice\">Recommended Read<\/div> \n        <div class=\"recommended-read-box\">\n            <div class=\"recommended-read-image\">\n                <img decoding=\"async\" src=\"https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/03\/7-Questions-Every-CHRO-Should-Ask-Their-CEO-Thumbnail.jpg\" alt=\"\">\n            <\/div>          \n            <div class=\"recommended-read-text\">\n                <div class=\"recommended-read-categories\"><a href=\"https:\/\/www.betterworks.com\/magazine\/category\/vantage-point\/betterworks-insights\/\">Betterworks Insights<\/a> | <a href=\"https:\/\/www.betterworks.com\/magazine\/category\/vantage-point\/hr-leadership\/\">HR Leadership<\/a><\/div>\n                <div class=\"recommended-read-title\">7 Questions CHROs Should Ask Themselves About Their Role<\/div>\n                <div><a class=\"recommended-read-cta\" href=\"https:\/\/www.betterworks.com\/magazine\/7-questions-chros-should-ask-themselves-about-their-role\/\">Read Now<\/a><\/div>\n            <\/div>\n        <\/div>\n        <\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-changing-world-demands-reimagining-work\">A changing world demands reimagining work<\/h2>\n\n\n\n<p>The disruptive pace of change has left many companies \u201cnavigating without a road map.\u201d The&nbsp; realities of these dynamic times, say Doug and Jamie, require a \u201cradical reimagining of work.\u201d Your employees are your most important asset. And as leaders, you have the power to make work better \u2014 to transform the experience of work for employees and drive business results.&nbsp;<br><\/p>\n\n\n\n<p>Interested in learning more? Find out more about the <em>Make Work Better<\/em> book and join other leaders as part of the Make Work Better community.<\/p>\n\n\n<div class=\"lazyblock-post-resource-cta-151rce align  wp-block-lazyblock-post-resource-cta\"><div class=\"custom-post-resource-box\" style=\"background:url('https:\/\/www.betterworks.com\/wp-content\/uploads\/2023\/03\/03-2023-MWB-BookLaunch-Horizontal-1.jpg;') no-repeat center;background-color:;box-shadow: 0px 0px 18px -5px ;background-color:\">\n  <div class=\"custom-box-heading\" style=\"max-width:500%;\"><p style=\"color:#000000;font-size:36px\">It&#8217;s Time for Transformation<\/p><\/div>\n  <div class=\"custom-box-cta\" style=\"\"><a class=\"et_pb_button\" href=\"https:\/\/www.makeworkbetter.com\" style=\"color:#ffffff;background-color:#000000;\">Get Your Copy<\/a><\/div>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Editor\u2019s note: Make Work Better: How Great Bosses Lead, Give Feedback, and Empower Employees, co-authored by Betterworks CEO Doug Dennerline and Betterworks VP of HR Transformation, Jamie Aitken, releases today.&nbsp; What comes to your mind when you think of the word \u201cborders?\u201d Probably not the powerhouse bookshop \u2014 yes, an actual bookshop, not your computer [&hellip;]<\/p>\n","protected":false},"author":111,"featured_media":91180,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"footnotes":""},"categories":[235,3307],"tags":[],"featured_location":[],"industry":[],"class_list":["post-91178","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-betterworks-news","category-performance-management"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v18.1 (Yoast SEO v23.9) - 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