TM - May 2008 - (Page 31) t is an increasingly acknowledged fact that a company’s human capital is its most valuable and sustainable competitive asset. But an organization’s appreciation of its talent can’t stop with this basic understanding. It is essential for organizations to proactively employ effective performance management systems that focus on both individuals and groups. Some of the most important performance measurement systems are those that focus on groups or teams that are responsible for a particular business process, customer or geographical area. In many respects, the same principles that apply to measuring individual performance are appropriate to appraise team performance. It is critical the team as a whole be assessed on its performance and capability levels. Talent management and employee development are critical to determine an organization’s performance potential, but the ability to manage performance often is the major differentiator between organizations that produce adequate results and those that truly excel. Executives responsible for designing an effective performance management system need to focus on accomplishing four things: • Define and agree on what performance the organization needs. • Guide the development of individuals so they have the skills and knowledge needed to perform effectively. • Motivate individuals to perform effectively. • Provide data about the condition of the organization’s human capital. With these four pillars firmly in place, managers can successfully manage performance, ultimately influencing the company’s bottom line and overall success. Pillar One: Defining Performance Determining what needs to be done and how to do it is the bedrock of a performance management system. Without this definition, it is nearly impossible to develop and motivate individuals, and then channel their performance to support the organization’s business strategy. I Every performance management system should explicitly identify objectives and how these will be measured once complete. Since many knowledge-based organizations don’t have bureaucratic control structures and detailed job descriptions, thorough performance management systems are necessary to avoid confusion about what each employee should do and what constitutes individual and overall effective performance. A perfect example is Best Buy’s Results-Only Work Environment program that allows employees in participating departments to work virtually anywhere at anytime, as long as they successfully complete their assignments on time. At first, this program created an obstacle for managers who preferred supervising work in progress and lending assistance along the way. To help smooth the transition into its new management approach, Best Buy trained its managers how to set performance expectations and measure performance even when they cannot observe and manage the work of employees in person. The retail giant’s resulting high performance levels were realized in part because it made an effort to set clear expectations for employees. Pillar Two: Develop Employee Skills and Knowledge A performance management system also must help employees gain the skills and knowledge necessary to perform effectively. The first step in the process is to identify existing competencies. Without knowing this, managers cannot fully realize the type of performance employees are capable of. Identifying competencies also shows how individual workers can contribute to the organizational talent strategy, how much training is required and what kind of hiring is necessary. This basic groundwork is especially important when business strategies experience difficulties. With this information readily accessible, managers can quickly and easily diagnose the root of the problem. For example, perhaps the skill sets of employees are not properly aligned with existing business needs. To solve this may require a simple shift in which employees are charged with executing the strategy, or perhaps the strategy itself needs to be changed. May 2008 talent management magazine www.TalentMgt.com 31 http://www.TalentMgt.com
Table of Contents Feed for the Digital Edition of TM - May 2008 Talent Management - May 2008 Editor's Letter Contents Human Performance Leading Edge Learning Connections Make the Connection: Effective Employee Evaluations Vacation: The Benefit Many Employees Don't Take The Four Pillars of Managing Performance Transform Talent With Deeper Skill Specialization Mentoring's Role in Succession Planning Graybar: Supporting a Long-Term View of Talent Management American Diabetes Association: On a Mission to Improve Employee Health Taking the Talent Pulse: What Drives High Potentials? American Systems Employees Earn a Piece of the Pie Advertisers’ Index Editorial Resources Full Potential TM - May 2008 TM - May 2008 - (Page Intro) TM - May 2008 - Talent Management - May 2008 (Page Cover1) TM - May 2008 - Talent Management - May 2008 (Page Cover2) TM - May 2008 - Talent Management - May 2008 (Page 1) TM - May 2008 - Talent Management - May 2008 (Page 2) TM - May 2008 - Talent Management - May 2008 (Page 3) TM - May 2008 - Editor's Letter (Page 4) TM - May 2008 - Editor's Letter (Page 5) TM - May 2008 - Contents (Page 6) TM - May 2008 - Contents (Page 7) TM - May 2008 - Contents (Page 8) TM - May 2008 - Contents (Page 9) TM - May 2008 - Human Performance (Page 10) TM - May 2008 - Human Performance (Page 11) TM - May 2008 - Leading Edge (Page 12) TM - May 2008 - Leading Edge (Page 13) TM - May 2008 - Learning Connections (Page 14) TM - May 2008 - Learning Connections (Page 15) TM - May 2008 - Learning Connections (Page 16) TM - May 2008 - Learning Connections (Page 17) TM - May 2008 - Learning Connections (Page 18) TM - May 2008 - Learning Connections (Page 19) TM - May 2008 - Learning Connections (Page 20) TM - May 2008 - Learning Connections (Page 21) TM - May 2008 - Make the Connection: Effective Employee Evaluations (Page 22) TM - May 2008 - Make the Connection: Effective Employee Evaluations (Page 23) TM - May 2008 - Make the Connection: Effective Employee Evaluations (Page 24) TM - May 2008 - Make the Connection: Effective Employee Evaluations (Page 25) TM - May 2008 - Vacation: The Benefit Many Employees Don't Take (Page 26) TM - May 2008 - Vacation: The Benefit Many Employees Don't Take (Page 27) TM - May 2008 - Vacation: The Benefit Many Employees Don't Take (Page 28) TM - May 2008 - Vacation: The Benefit Many Employees Don't Take (Page 29) TM - May 2008 - The Four Pillars of Managing Performance (Page 30) TM - May 2008 - The Four Pillars of Managing Performance (Page 31) TM - May 2008 - The Four Pillars of Managing Performance (Page 32) TM - May 2008 - The Four Pillars of Managing Performance (Page 33) TM - May 2008 - Transform Talent With Deeper Skill Specialization (Page 34) TM - May 2008 - Transform Talent With Deeper Skill Specialization (Page 35) TM - May 2008 - Mentoring's Role in Succession Planning (Page 36) TM - May 2008 - Mentoring's Role in Succession Planning (Page 37) TM - May 2008 - Mentoring's Role in Succession Planning (Page 38) TM - May 2008 - Mentoring's Role in Succession Planning (Page 39) TM - May 2008 - Graybar: Supporting a Long-Term View of Talent Management (Page 40) TM - May 2008 - Graybar: Supporting a Long-Term View of Talent Management (Page 41) TM - May 2008 - American Diabetes Association: On a Mission to Improve Employee Health (Page 42) TM - May 2008 - American Diabetes Association: On a Mission to Improve Employee Health (Page 43) TM - May 2008 - Taking the Talent Pulse: What Drives High Potentials? (Page 44) TM - May 2008 - Taking the Talent Pulse: What Drives High Potentials? (Page 45) TM - May 2008 - Taking the Talent Pulse: What Drives High Potentials? (Page 46) TM - May 2008 - Taking the Talent Pulse: What Drives High Potentials? (Page 47) TM - May 2008 - American Systems Employees Earn a Piece of the Pie (Page 48) TM - May 2008 - Editorial Resources (Page 49) TM - May 2008 - Editorial Resources (Page 50) TM - May 2008 - Editorial Resources (Page 51) TM - May 2008 - Editorial Resources (Page 52) TM - May 2008 - Editorial Resources (Page Cover3) TM - May 2008 - Editorial Resources (Page Cover4)
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