In uncertain times, goal setting is an unadulterated mess. With remote working, we live in a world of constricted performance execution and monitoring. Goals and performance monitoring being tentative, performance appraisals are challenging.
As the pandemic struck us on the eve of 2020, the way we breathe, and work has changed. For many of us, the work location (home), hours of work (any time), and how we work(in our shorts) are different. They changed in a matter of days.
It is apparent that the method of work has changed. How about employee performance?
What has changed?
We all agree that the world is changing. So is performance management.
To understand it better, let us break down the performance management process. A simple construct of the performance management system has three components:
· Goal setting,
· Performance monitoring and
· Performance appraisal.
Goal Setting
Goal setting is a process of establishing objectives of an employee for a specific period. The Key Performance Indicators (KPIs) are measuring tools. And the goals form the targets.
“If you can’t measure it, you can’t manage it.”- Peter Trucker
The COVID 19 pandemic has changed the market dynamics for most industries and sectors. Customer needs and wants have changed. Many assumptions of the pre-COVID era have become irrelevant.
So, the KPIs and targets set before the pandemic are unusable. Thus, the company must review and revise them.
Overview of Performance Management
Performance Monitoring
Performance monitoring is about supporting and enabling employees to achieve their goals. It involves observing the work process they follow, helping them plan, reviewing the work done, and provide feedback. It can include organizing training, coaching and mentoring, where necessary.
COVID has disrupted the standard workflows as several employees work from home. So, practices such as observation, spot checks, and informal chats are not workable.
Performance Appraisals
Performance appraisal is about the evaluation of the progress of the employee in achieving the goals. In consultation with the employee, the supervisor analyzes and compares the performance with the targets set. They can also consider any unexpected event that affected the performance. These include developments within the company and in the operating environment.
It is no brainier to say that, with COVID19, the operating environment has changed. Some of the goals set have become irrelevant. So, we cannot use the KPIs and goals sets initially.
There are a few other aspects one must consider. The changes have affected the way a company should reward or train an employee. For example, with the pandemic, many customers started ordering online instead of walking into a showroom. Can you use the increase in sales of an online salesperson compared to the one on the shop floor for paying a bonus?
The old targets and KPIs cannot measure the performance of an employee in the changing environment. With the new normal, we need a new performance management system.
Way Forward
It is essential to review the goals and performance monitoring and appraisal systems. In the wake of the pandemic, some companies have reset (or are resetting) their goals. They have a new set of performance metrics and targets.
The pandemic has encouraged remote working. It implies more autonomy and delegation. The challenge is that the employee requires higher levels of proficiency and motivation to perform well while working remotely. So, the performance metrics should be adjusted to include them.
The companies have been considering several factors for determining the targets. For example, for fixing the goal for a salesperson the market size, competition and brand value were treated traditionally as relevant factors. But in the post COVID era, the company may
want to consider the impact of the pandemic on their market segments and each sales channel.
In the time of a downturn, performance management plays a more crucial role. Organizations need the best performance from every employee for survival and success.
Performance is your reality. Forget everything else.”: Harold S. Geneen
In the time of a downturn, performance management plays a more crucial role. Organizations need the best performance from every employee for survival and success.
Future Options Consulting has been offering performance management services for over a decade in African Market. Please contact us at info@futureoptions.org for more information.
