Performance Slips When it is Not Measured

Without clear stan­dards and reg­u­lar mea­sure­ment, per­for­mance suf­fers. Even the self-motivated achiever will pro­duce dis­ap­point­ing results when they lack direction.

Every man­ager and employee must have a clear under­stand­ing of what’s expected of them, and they must be mea­sured against those expec­ta­tions daily. Inspect often to ensure the results you expect are achieved, and let every­one know where his or her per­for­mance ranks.

Be Clear on Expectations

It is impor­tant for lead­ers to be crys­tal clear on what is expected, but man­agers often fail to set and com­mu­ni­cate clear and mea­sur­able per­for­mance criteria.

Every posi­tion or job respon­si­bil­ity should have estab­lished quan­tifi­able stan­dards which are used to hold the employee account­able. If the posi­tion is respon­si­ble for rev­enue or prof­itabil­ity, how much is expected? What is the min­i­mum expec­ta­tion by week or month? What is con­sid­ered above aver­age or superior?

There is also more to a posi­tion than the num­bers of wid­gets that are expected be com­pleted on a reg­u­lar basis. These are other intan­gi­ble mea­sures, and even these are usu­ally mea­sure­able and observ­able. What is the level of ser­vice expected to inter­nal and exter­nal cus­tomers? How are peo­ple expected to treat one another? What type of atti­tude should employ­ees exhibit in the work­place? What must man­agers do to pro­mote the cul­ture of the team or company?

If man­agers and employ­ees do not clearly under­stand what is expected of them, it is very unlikely that they will ever achieve the expected level of per­for­mance, let alone sur­pass it.

The expec­ta­tions for each role, and the cri­te­ria for suc­cess, should have been clearly com­mu­ni­cated dur­ing the hir­ing and on-boarding process. If they weren’t, the fail­ure to do it now will cre­ate big­ger long-term problems.

Set Stretch Goals

It is worth repeat­ing that you can­not reach a goal you do not have. You also can­not achieve a goal that you don’t under­stand. It fol­lows that if your goals are easy to achieve, you will almost cer­tainly under­per­form to your capabilities.

Set­ting goals has sev­eral prob­lems. What per­for­mance stan­dards should be set and when should they be changed to set the per­for­mance bar higher?

Often man­agers have been pro­moted because they per­formed well in the jobs they now super­vise. As a result, set­ting goals for their team can be tricky. They cer­tainly know what they were able to accom­plish, but it may have been awhile since they actu­ally did the work. Changes may have been made which impact per­for­mance expectation.

If you are unclear on what the goals and stan­dards should be, take the time to observe and mea­sure cur­rent per­for­mance on spe­cific require­ments for all employ­ees. Then, rank their per­for­mance and cal­i­brate what is con­sid­ered sat­is­fac­tory per­for­mance based on what is observed.

Recently, I wit­nessed a CEO set­ting per­for­mance mea­sure­ment cri­te­ria for all crit­i­cal func­tions in the orga­ni­za­tion. When review­ing actual per­for­mance against these cri­te­ria, most of the per­for­mance wasn’t even close. Per­haps process changes were get­ting in the way, or train­ing was not suf­fi­cient. What­ever the cause, this leader recal­i­brated the cri­te­ria to make sure the major­ity of employ­ees were at least within the expected standard.

If stan­dards are set too high, and unachiev­able, then they will have lit­tle use as a mea­sure­ment tool and a neg­a­tive impact on morale.

The chal­lenge for this leader, and for any of us, is to eval­u­ate what it will take to get the level of per­for­mance to a stan­dard that is accept­able and achiev­able. This must be a spe­cific goal that can be achieved over time.

Mea­sure Per­for­mance Religiously

When per­for­mance stan­dards are set, they must be mea­sured. If they are not, it won’t take employ­ees long to decide that they must not be impor­tant. If employ­ees are to be held account­able, then mea­sure­ment is essential.

There are sev­eral ben­e­fits of reg­u­lar mea­sure­ment. It helps keep man­agers and employ­ees focused on what’s impor­tant. If there are issues, they can be cor­rected early. If per­for­mance is not cor­rected, then appro­pri­ate and timely man­age­ment action can be taken.

Don’t be Afraid to Com­mu­ni­cate Ranking

I have seen man­agers unwill­ing to reg­u­larly share per­for­mance results with employ­ees in sim­i­lar posi­tions because they didn’t want to embar­rass under­achiev­ers. Non­sense! I appre­ci­ate their empa­thy, but the best way to direct it is to help those under­per­form­ers to improve.

It has been said many times that you must inspect what you expect. It fol­lows that you must com­mu­ni­cate not only what is expected, but also the results of the inspections.

Within most of us is a com­pet­i­tive spirit. We don’t want to under­per­form and find our­selves at the bot­tom of the heap. Per­for­mance vis­i­bil­ity is a good thing. It cre­ates an oppor­tu­nity to rec­og­nize top per­form­ers and to help those who need improve­ment. Over time, an aware­ness of the team’s per­for­mance level can lift over­all per­for­mance and raise the bar for con­tin­u­ous improvement.

Lead­ers must be clear and defin­i­tive about what is expected. They must ensure that all per­for­mance is mea­sured, good per­for­mance is rewarded, and short­falls are improved.

Most peo­ple want to do well. With proper expec­ta­tions and encour­age­ment, you’ll draw out their very best efforts.

Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay

No related posts.

Tags: , , ,

3 Responses to “Performance Slips When it is Not Measured”

  1. Dan Foster says:

    Great post Jerry. I had to have the “per­for­mance” and “expec­ta­tions” talk with my team at the end of 2009 as we set goals for 2010. We are now at the end of Q1 and its time for us our first for­mal review. We’ll be using the Keep-Start-Stop tool pri­mar­ily but I am going to share the pro­duc­tion rank­ings and remind every­one of per­for­mance expec­ta­tions for the next 9 months.

    Thanks for the reminder that this is so impor­tant and key part to lead­ing a suc­cess­ful team.

    Dan

  2. […] of my friends at Build­ing Cham­pi­ons and a recent arti­cle from exec­u­tive coach, Jerry Baker on mea­sur­ing per­for­mance. Jerry’s arti­cle con­vinc­ingly lays out how per­for­mance slips when it is not measured […]

  3. […] is impor­tant to have clear bench­marks estab­lished in advance, and then to mea­sure per­for­mance against those expec­ta­tions. Every func­tion must have known per­for­mance stan­dards and expectations […]

Leave a Reply