Surface Ripples

Improving Performance – Effective Appraisals

An effective appraisal system results in increased customer loyalty and therefore higher profits, more effective recruitment and more engaged and productive staff.

Larger companies usually have highly structured processes involving multi-page forms covering pre-defined competencies. The danger is that appraisal competencies take on a “standard form” and the “system” takes on a life of its own, becoming a “cottage industry”. There are those who make their living out of advising on performance management through appraisal systems.

Before defining appraisal competencies, start with who the organisation’s customers are, what the organisation is about (its “culture”) and the sort of roles required. Many will be “standard” roles (e.g. Marketing, Sales, HR, IT, Customer Service) but customer needs are what should drive the competencies.

When identifying competencies, expect “standard” ones like “Technical Knowledge”, “Problem-Solving”, “Working With Others” or “Leadership”. These have their place, but for an appraisal system to be truly effective, it must reflect what customers want and not what makes the “perfect” manager.

Ideally, each function would have its own unique competencies. One could go further and sub-divide these by rank within the function…

Assuming that the organisation has one set of competencies for everyone, it often compounds its error by looking to achieve high scores on all competencies. This ignores two things: the character of employee and the relative requirement for that particular competency in the function and organisation. I once asked the HR department of a large organisation if they had different scores for different roles and functions. The answer? A lengthy silence.

The final step? Train appraisers and appraisees in the use of the system.

An effective appraisal system:

• Reflects customer needs;
• Reflects company values;
• Is easy to understand;
• Is easy to administer;
• Identifies both strengths and areas for improvement.

Does yours meet the above?

I have spent more than half my life working in different world markets from the most developed to “emerging” economies. With more than 20 years in the world financial services industry running different service, operations and lending businesses, I started my own Performance Management Consultancy and work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email . My website provides a full picture of my portfolio of services.

Labels: Career, Strategy, Teamwork

posted by William Martin @ 09:18