Performance Management

Setting expectations, reviewing delivery and acting on the outcome.

Workflow

  1. 01Goal Setting
  2. 02Check-ins
  3. 03Review
  4. 04Calibration
  5. 05Outcome and Development Plan

If you change this

It implies 10 topics across 2 modules, including Security & Identity which you might not expect.

See the path ahead →

Why it matters

The system's value is continuity: a record of expectations and outcomes that survives a change of manager, and feeds decisions about pay, development and succession with something other than recollection.

  • It supports pay decisions: Where remuneration is linked to performance, the record has to be defensible.
  • It is evidence: In a dispute, the contemporaneous record is what counts.
  • It reveals capability gaps: Aggregated, it shows where the organisation is thin.

The workflow

  1. 01

    Objective setting

    Expectations agreed and recorded, aligned to team and organisational goals.

  2. 02

    Check-ins

    Progress discussed and noted through the period, not only at the end.

  3. 03

    Assessment

    Performance assessed against the objectives that were actually set.

  4. 04

    Calibration

    Ratings reviewed across managers for consistency.

  5. 05

    Outcome

    Remuneration, development or management action follows.

  6. 06

    Development plan

    Capability gaps become a plan with dates.

Calibration is the step organisations skip and then regret. Without it, a rating means something different under every manager, and any pay decision resting on ratings is indefensible.

What you need in place

  • Objectives recorded at the start: Assessing against objectives set retrospectively is not assessment.
  • Manager visibility on history: Including under previous managers.
  • Calibration support: Distribution visible across an area.
  • Link to remuneration rules: If pay follows performance, the rule should be explicit.
  • Underperformance path: Separate, documented, and legally careful.

Questions to ask

01Objectives

Are they set before the period, or written to match the outcome?

The latter is common and worthless.

02Calibration

Do ratings mean the same thing across managers?

Check the distribution by manager before trusting any of it.

03History

Can a new manager see prior periods?

Otherwise every manager change resets the record.

04Underperformance

Is there a documented path, used consistently?

This is the part that ends up in front of a tribunal.

05Pay link

Is the relationship between rating and pay explicit?

Implicit links create a perception problem either way.

Metrics and KPIs to track

Objective completion

Employees with objectives recorded before the period starts.

Review completion rate

Reviews completed within the cycle.

Rating distribution

By manager and area, as a calibration check.

Development plan follow-through

Plans with completed actions.

Alongside this

All of Human Capital Management →