Did you know that 43% of employees stated that they have the same areas for improvement, and they are mentioned every year? Think about that. 43%, every year are told, you need to improve in this area. That, to me, is a bit of an astounding figure, and that's very good performance management. In this video you'll be able to understand differences between a strategic and non-strategic Performance Management process. You'll also understand how a strategic Performance Management process leads to continuous improvement. Here's what I call the non-strategic process. You may have gone through this in your own careers or seen this. Performance activities, how you define this are the activities that go on through out the year by the employee. Then HR going to send you note saying it's time for the reviews, and you'll get ready and if you have notes you'll collect those and you'll look at them. And then you'll conduct the performance review with the employee. Then you'll file it, and the chances are you might not look at it. Next year you'll do it again. And then the next year you'll do it again, and you'll do it again, and you'll do it again, you do it again. Do you get the point? Non-strategic processes are poor performance managements. We tend to repeat the same things over and over again. It's like a professor whiting out the data on his syllabus, and issuing the same one every year. You need to think more strategically. I want to be more strategic in my performance management approach, but where do I start? Let me give you a nice model, I think that it will be very interesting to you, and maybe a bit of a different look at it then you've seen before. This model that I want you to look at has, as a base, as a foundation, if you will, strategic performance management. It then goes into performance planning. You look at the performance and ongoing activities, the raters and review. Let's think about this as we go ahead. First, what comprises the strategic performance management foundation. Let me give you a couple of ideas of what should be in there. From an organizational standpoint, is our strategic plan in place? Second, do we have a mission statement? Is it updated? Third, do we have organizational goals and are they communicated to everybody? From a human resource perspective, have we done our performance planning activities? Let's look at the few of this. Do we have job descriptions that are accurate and up to date and people know what they are? Do we have performance standards that are up to date? Do people know what their standards are and what they're accountable for? We'll talk more about performance standards in a future lesson. You also want to make sure you train your managers. Do you have good performance management training for all your managers? From an employee perspective, there's also planning activities. Have you discussed the accountability of the job? This typically comes from the updated job description. Have you talked about goals? Goals for the year whether longer term goals or short term goals. You want to know the goals so they can be incorporated into the development portion of the review. Objectives, do you have objectives for the year, or are you just going to do the same thing you did last year? This happens a lot. I've seen when longer term employees, they will just say, well your doing good just do what you're doing. You want some clear objectives for growth. Another part of the management employee proposition here is the ongoing performance activities and the feedback part. You want two way communication throughout the year. Feedback is a two way street. If I'm not giving you feedback, come ask me for it. I tell my employees that all the time and my students. Don't make it just my job. Monitoring performance, that's a key job of the manager to monitor performance and the objectives. But I would also state as an employee, you want your employees to also monitor their performance so they know where they're at. Remember this is a partnership here. Ongoing feedback. You've heard that before. I'm sure in many cases. But feedback ongoing. Don't wait till the end of the year to give me my feedback. Don't wait till the end of the month when we have a meeting. If something's critically wrong, give me feedback in a timely fashion. The idea with ongoing feedback is to correct the behavior and correct it immediately. Coaching. Every manager's job has a bit of a coaching piece to it. So make sure you're coaching your employees. A relative feedback, feedback is more specific event. Coaching is overall ideas and strategies. Maybe as looking at ways to enhance your performance skills or how you react with others and may not be a specific incident. Documentation, critical to have good documentation so you can conduct an effective performance review. And I tell employees, you might want to document some things that you like. So encourage your employees to document things that they're proud of and they can bring that to the review process too. You get more data that way. Then the manager part, and this is the manager alone, when you're preparing for the review. You want a multi-rater performance assessment. We'll go into a great deal about this in later lessons. But basically you want opinions of more than just you. You want a wider range of opinions, so you get a full understanding of the employees. This is a best practice. You want to consolidated data throughout the review period. You want to look at multiple sources. And again we'll talk more about those, these tend to be the customers or peers, etc. And you'll also want to review the organization's review process. Part of your job is to know what to expected of you as a manager, what the correct forms are, what the timing is. Just know what the process is. That's your job to get ready for the review. Then we come back together with the employee, and we conduct the review. Here, I want to make sure you prepare for it. Have the employee prepare for it, too. You want them to be an actual part of this process. The delivery, that's the actual delivery of the review. Sometimes, it's a lot of fun when it's a good employee, could be a little bit different. So that's part of the preparation. Document what goes on that review, your goals for next year, your objectives, all that should be part of the quote, unquote paperwork process. And follow up, whatever you decide on performance objectives, don't be like the non-strategic one we put in the file and we don't see it for a year. Follow-up, my recommendation is at least quarterly. But keep bringing the issues up. Encourage your employees to follow-up with you. So the last part of this model they love is this continuous improvement. In some models, they're linear. This one you'll see we go round and round, continuous improvement, that's the goal of true performance management. It's not an event, it's a cycle and we keep going around, around. And if you do this and implement these processes that we've discussed, I believe you'll have a continuous improvement mindset and your employees will grow and grow and grow, rather than be more stagnant.