Introducing a new approach to performance management can provide you with the opportunity to develop the people management culture of your organisation. As you think through the questions that we posed to you earlier in this series of blogs around whether you want evolution or revolution; the features that are important to you in a performance management system and the complexity of your organisational structure; it is worth also considering whether you want to encourage more of the same people management behaviours or whether this is your opportunity to progress things?
For example, most clients are now keen to move away from the ‘once yearly tick-box’ appraisal to encourage a culture of ongoing performance conversations. This is wise because the evidence around achieving Return on Investment (ROI) in terms of Talent Retention is well supported by this – assuming the conversations are actually of quality. However, the question we raise here is how serious you are about driving these behaviours if they are likely to require an element of Culture Change from your managers? Most of the standalone performance management systems out there now offer ongoing check-in functionality and could be considered an appropriate solution -for your business if you are looking for a ‘plug and play’ software solution only.
In reality, culture change requires ongoing education and communication, which needs resource and expertise. It is worth considering whether you have this skill and capacity in-house before opting for a pure software solution?
If you are thinking that investing in education and training is outside your budget then perhaps consider the fact that Pareto’s Law will be at play here. It is highly likely that 80% of the impact of your performance management solution will come down to how well you embed it over the first 12 months. This could be through training managers in agreeing on quality objectives and feedback; educating end users to take control of their own development or following people up when they don’t complete their appraisals or check-ins on time.
In truth, a relatively small amount of impact or ROI will be down to using the software alone, because it is just as easy to carry out a ‘tick-box’ appraisal online as it is on paper. If you are going to invest in buying performance management software then think about what will truly deliver the ROI – this is behaviour or culture change and if you have the internal resource and expertise to deliver this then you can apply this to any of the solutions out there.
If, however you are like most internal L&D/HR teams that we know who have a plethora of priorities and limited resource then you may want to seek out providers like Actus who offer expert Consultancy and Culture Change guidance as part of the package. We provide flexible Consultancy and Training packages that can complement your internal resource and for many clients work with them as long-term training partners.
If you would like to know more about Actus Culture Change support why not get in touch below or arrange a free demo of Actus Software?