Performance Management Cycle

Using a performance management cycle adds a structure and process to a manager's efforts to help others to reach their potential.

There are numerous versions of the cycle, each essentially following a common management process of:

reviewing what has been done; planning what needs to be done; then putting those plans into action.

Here we introduce a standard version, illustrated with some interesting quotes. You might find these useful as a starting point.

Plan

The first stage of a conventional performance management cycle is the plan. Broadly speaking, this identifies future performance requirements in terms of targets, actions and behaviours. The plan should challenge the individual but also be achievable. Ideally, it should allow that person to combine existing expertise with their potential for development. Plans must also address the alignment of priorties, including those of the individual, their team and the organization as a whole. For the plan to work it also requires focus, both on what is to be achieved and how that is to be done. Finally, the plan requires commitment from all involved.

As Peter Drucker argued: "Unless commitment is made, there are only promises and hope; but no plan."

Develop

The second stage of a basic performance management cycle is the development of the individual's expertise and potential. The development phase should focus on both improving current expertise, and on allowing new skills or knowledge to be gained, particularly where there is evidence of potential. At this stage it's crucial that the manager identifies opportunities, then provides coaching and other support as needed (or available).

Remember Thomas Edison's salient advice: "Opportunity is missed by most people because it is dressed in overalls and looks like work."

Perform

Performance management is all about performing. As Henry Ford astutely observed: "You can't build a reputation on what you are going to do."

There are several factors to consider when managing the way people perform. Firstly, plans and potential can count for little unless they are used to deliver something meaningful. In a work-based performance management cycle, this must relate to the needs of individuals, their teams and their organizations. Secondly, there is deep satisfaction to be found in doing something well, and it's much easier to excel when using your strengths. Good managers ensure they help their colleagues do just that. Allow and encourage your people to do what they do best, preferably on a regular basis. As Peter Drucker once explained:

"Those who perform love what they’re doing. Pianists have a wonderful expression I heard years ago: 'I practice until I have my life in my fingers.'"

Finally, and underpinning both of these points, ensure your people have the resources they need to be able to perform. Clearly there may be limitations beyond the manager's control here. Nonetheless, it's unfair to expect improved performance without the right tools to enable it.

Review

The final stage in most performance management cycles is the performance review. This is designed to allow both parties to the process to consider how achievements have met the goals set during the planning stage. A review looks at results, both tangible and intangible, and provides the springboard for determining where to concentrate efforts as the cycle returns to the planning stage.

Performance management will not work very well if it's only seen as an annual process. The performance management cycle works best if it's used as a series of mini-cycles, throughout the year. Then, when it comes to a more detailed review and planning session, there should be no surprises. Regular performance review keeps you in constant touch with what is happening, and helps build a more effective performance management process.

A Final Point

In our article: How to Motivate Employees to Perform, we introduced our PERFORM model. This highlights the key factors you should consider when developing your own approach to performance management. Combine the PERFORM model with this basic performance management cycle to help with your management performance!



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