Part II: How to create a performance culture — What is good performance?

In this post I shared that an important building block for a performance culture is a performance assessment process and experience that is anchored to your company’s philosophy about what good performance is.

What is good performance?

Is it achievement against set goals? Is it demonstrating certain competencies, skills or values? In some organizations, performance is simply the rating your manager gives you based on his/her/their personal beliefs about your performance.

I tend to build out systems that see good performance as tied to certain competencies and values that were demonstrated during the course of the last 6–12 months. I see achievement against goals or objectives as different from performance. First, because goal achievement is subject to so many externalities, and as a result may not consistently signal the long term value or potential of a person to his/her/their organization. Second, because goals are a better tool for alignment than for assessment and it’s important not to muddy the two. Alignment helps an organization focus. Assessment helps an organization grow.

Below is an example of a simple competency matrix that describes what good performance is, in this case for HR. I’ve worked closely with my HR teams to develop simple, usable ‘cards’ like this for functions and departments across an organization. We develop these consultatively with the leadership teams in these functions and departments — and that consultative process of ideation, alignment, formalization and codification, actually builds important organizational acumen and conviction around the system that is so much more valuable than just the card itself.

Design notes about the competency card above: we worked together as an HR leadership team to define 4 key competencies that are important across the career path of an HR employee. At each job level, expectations progress of what the employee should demonstrate in each of the 4 areas (e.g. increased scope, complexity, independence). This card shows both a managerial and individual contributor path. Sometimes, there can be an entirely different card for managers. We rolled the card out to each HR sub-team, and capped off the rollout with a team-wide live video session. I ask each of my leaders to check in every quarter for a short conversation with each employee about the competencies.

What is a good performance assessment experience?

1. Employees know what they are being rated on and when, how the rating and assessment will be delivered (when, where), and have forums or channels to ask questions about the process.
2. Employees walk away from the assessment with clear feedback on how they are performing against the competencies and values right now, what their unique pattern of strengths is, and where they need to improve their performance to meet minimum standards for their level.
3. Their manager and HR partner followed up with them to brainstorm how they can improve in specific competency areas.
4. They know when they’ll next have a chance to demonstrate and be assessed on their development to show progress.

How to get here!?

It sounds like so much needs to happen to get managers equipped to deliver on this, and to get employees informed about expectations, but it is surmountable with a great project plan that incorporates the right cadence of company, manager, executive and HR trainings, materials, office hours and updates.

I like to start by breaking down the company into various audiences, and identifying with my HR team what we want each audience to understand, believe and know how to do by a certain date. Executives, managers, employees, the HR team, the IT team, and the finance team tend to be key audiences with distinct needs, and there may be more depending on your company. We list all the channels and mechanisms we have for helping each audience toward those goals: 1:1 conversations with managers and leaders, rollout sessions, email, Slack, HRBP office hours, executive team and leadership team updates and consultations, formal and informal feedback loops. And then we put together timelines for who we will engage, when, and how.

The great news is that practice leads to better and better cycles every time you lead your organization through the new process.