A performance management system can help a business achieve both its financial as well as its strategic goals, capture data from managers, sales people and employees in a single interface. Often times, such performance management is gathered via the web, whether it be a cloud computing method or just a businesses’ internal software program. Here are five steps in building an effective performance management system that could change the way you do business:
1. Set Your Goals
A business is nothing without goals. So it’s important to set goals for your business, no matter how big or how small it might be. If you don’t, what will you have to strive for? Performance management systems help your staff see a common goal by involving them in that goal and encouraging them to participate in reaching that goal. This step of building your system consists of stating your sales and business goals, as well as stating product goals and any other thing you wish for your business to accomplish over the course of the next year.
2. Set Expectations
The next step should consist of sitting down individually with each of your employees and telling each of them what it is that you expect from them in terms of their performance. Start by telling them something that they’re doing well, then something they could improve on and round out the meeting with more of their strengths. Set goals for each of your employees and give them the guidance to help them reach it.
Now that you’ve set your goals from both a business and employee perspective, you, as the business owner or manager, need to do some policing to ensure that your employees are on the right path to meeting your goals. Now, obviously you’re hiring employees that you see potential in and don’t want to be babysitting, so to speak. That’s where performance management software, such as that from Cornerstone OnDemand learning management system, comes into play. It can take the most tedious parts of performance management out of the equation for you.
Conduct performance reviews where you sit down with each employee and give them feedback. Think of this as like Step 2, except now you have concrete evidence and stats to back this up. Talk with your employees and give them grades, per say. Make this step a two-way street. After voicing any of your concerns, make sure you allow them the time to voice theirs. Remember, everyone needs to be on the same page in order for a business to truly become successful.
5. Review and Renew
As you carry out your performance management system, there are certain things that are going to have to be tweaked and adjusted as your business carries on. Don’t just set goals and not revisit them. In fact, do the opposite. Expectations may change based on a number of factors.
Remember that the business owner or manager who isn’t afraid of taking chances and embracing management systems that are revolutionary, while still being grounded in a foundation that respects traditional management that still works for all of the right reasons. Applying these tips to your management’s better practices plus the implementation of a management system that works for you, could be all you need to shape up your companies’ future.