Introduction to Performance Planning

Introduction to Performance Planning

7/16/2018

Performance Management

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The State of Kansas (2008) lists the Performance Planning process as the first step in a performance management system. It defines Performance Planning as the establishment of an organisation’s performance objectives for the following year. [1]

​At the beginning of each performance management cycle, managers should establish strategic objectives for their division to achieve. You may refer to our previous article on strategic direction for more tips on establishing relevant objectives. 

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Performance Requirements and Expectations

Once an organisation’s objectives are established, managers should inform employees about the requirements of their respective positions. Managers should also define appropriate guidelines for their employees’ behaviours, and the results that they are expected to achieve during a specific time period. These aspects will influence how employees may support and communicate with their team, and accomplish their tasks.

According to a study by the SHRM Foundation (2004), managers should align their expectations to their organization’s strategic direction and corporate objectives. By doing so, they may construct effective performance management systems to encourage constructive employee behaviour. They may also ensure that their corporate initiatives achieve positive results.
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Once managers have determined specific criteria for the organisation’s future success (e.g. improving customer service), their performance management systems should inform employees about expectations and rewards that are related to their objective. This communicates the importance of the organisation’s objective, and encourages employees to conduct activities that drive corporate productivity. [2]

Setting S.M.A.R.T. Objectives

Alternatively, the State of Kansas (2008) suggest that organisations may choose to follow the S.M.A.R.T model, which specifies that strategic objectives should be Specific, Measurable, Achievable, Relevant and Time-bound.

2.1. Specific

Managers should specify what their employees need to achieve, and the parameters of their corporate initiatives. Managers should establish specific roles for those in their division, and must provide employees with sufficient details that foster a clear and unified understanding of their expectations. [3]

2.2. Measurable

Managers must define requirements for success, and must establish indicators for their performance evaluations. Managers must also determine if they can generate results from data that they currently have, or if new measures must be identified. [4] Managers must also complement objectives with key performance indicators (KPIs), which are quantifiable metrics that allow an organisation to monitor its progress towards its strategic goals. [5]

2.3. Achievable

Managers must identify if their objectives are aligned with their organisation’s mission, vision and culture. They must determine the objective’s significance, and how it is aligned with their job scope. They should also determine the consequences of failing to achieve their objectives. [6]

2.4. Relevant

Managers must determine if their objectives are aligned with their organisation’s current activities. They must determine if the objective will allow their organisation to expand, and if employees are able to develop their competencies.

They must decide how to allocate resources to achieve their objectives, and if they require help from other divisions to achieve these strategic goals. They must also determine if their staff possesses the knowledge and skill to complete these tasks. [7]

2.5. Time-bound

Managers must establish reasonable deadlines and milestone dates for their projects. They should also predict factors that may influence these deadlines, and should devise strategies to address them. Managers should also determine if the completion of certain objectives would influence the results of other strategic initiatives. [8]

Guidelines for Establishing Effective Performance Goals

According to the SHRM Foundation (2004), employees should achieve results that are connected to an organization’s strategy and goals. They should establish specific timelines for the project, and ensure that their initiatives generate quantifiable results.
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Secondly, managers should also ensure that employees are given ample opportunities to develop their competencies. Managers may establish schemes that equip employees with skills to improve their productivity, or advance their careers.

Finally, SHRM Foundation encourages managers to motivate employees’ performance by establishing goals that are challenging but achievable. In addition, managers should also establish a maximum of three corporate goals within their divisions, as pursuing multiple goals may decrease a division’s chances of success. [9]

Example of an Effective Performance Goal

​An organisation who intends to increase their sales figures may achieve their corporate objectives through the following process:

1. Specify quantifiable outcomes for corporate initiatives

• E.g. Increase sales figures by a certain percentage.

2. Specify timelines for corporate initiatives

• E.g. Complete a sales and marketing initiative within the next quarter.

3. Specify ways to monitor employee productivity

• E.g. Conduct regular performance evaluations, during which an employee’s peers or supervisors may evaluate their performance.

4. Specify objectives to improve employee competencies to sustain these initiatives

• E.g. Establish training programs to allow employees in the sales division to train their customer service skills.
  • Conduct regular briefings about employee requirements and expectations.
  • Distribute rewards to employees who achieve their targets. Impose penalties on underperforming staff, or send them for corporate training.

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references

[1] State of Kansas. (2008). Performance Management Process: A Resource Guide for Managers. KS, USA: State of Kansas. pp.7
[2] Pulakos, E.D. (2004). Performance Management. VA, USA: SHRM Foundation. pp.4-6
[3] University of Glasgow. (n.d.) Performance Development Review Guide to Writing SMART Objectives. Glasgow, Scotland: University of Glasgow. pp.6
[4] QVARTZ. (2016). Performance Management. Oslo, Norway: Qvartz. pp. 11-12
[5] QVARTZ. (2016). Performance Management. Oslo, Norway: Qvartz. pp. 11-12
[6] University of Glasgow. (n.d.) Performance Development Review Guide to Writing SMART Objectives. Glasgow, Scotland: University of Glasgow. pp.6
[7] University of Glasgow. (n.d.) Performance Development Review Guide to Writing SMART Objectives. Glasgow, Scotland: University of Glasgow. pp.6
[8] University of Glasgow. (n.d.) Performance Development Review Guide to Writing SMART Objectives. Glasgow, Scotland: University of Glasgow. pp.6
[9] Pulakos, E.D. (2004). Performance Management. VA, USA: SHRM Foundation. pp.4-6