Agile performance management (and implementation) navigation

Agile performance management (also known as continuous performance management) has been around for years. More and more leading companies are benefiting from the transition. Still, many companies still have to switch from traditional annual performance reviews.

To understand why you need to turn your employee performance management system into agile performance management, answer the following questions.

• What is Agile Performance Management?

• What is the main difference between traditional performance management and agile performance management?

• Why is agile performance management important?

• How can agile performance management be implemented to achieve effective performance?

What is Agile Performance Management?

Agile performance management is an approach to controlling employee performance and development throughout the year, not on an annual or semi-annual basis. It is cooperative and includes regular conversations and ongoing feedback. Agile performance management focuses not only on goals (such as annual performance results or annual performance evaluation), but also on how goals and obstacles to effective performance are regularly redefined. Agile performance management is built for a brave new world that is faster, more social and communicative.

A key feature of Agile Performance Management is performance discussions or "check-ins" that need to be done frequently, which should ideally happen every month. This session is designed to help you maintain honest and meaningful relationships and conversations between managers and employees while giving you the opportunity to share the necessary feedback.

The concept of agile performance management is to eliminate the disadvantages and disadvantages of traditional performance management and develop a more future-oriented and meaningful approach. For a better understanding, you should look at the main differences between traditional performance management and agile performance management.

Agile performance management compared to traditional performance management

Traditional performance management has a poor reputation. In fact, it has proven to be inadequate to improve and measure employee performance and contribution to the company.

Traditional performance management is centered on annual assessments through interim assessments. During the annual review process, managers generally need to determine how well their employees achieved their goals over the past year, how effectively they presented the company's values, behaviors or skills, what career goals they are pursuing, and what goals. He must pursue what his personal development plan will look like next year. Achieving all of this at the meeting is not feasible, so the evaluation often becomes a "check mark".

On the other hand, agile performance management allows you to regularly discuss these points at check-in meetings over time, so discussions are more meaningful and not rushing.

Traditional performance management is often linked to strict annual goals that are outdated or unrelated at the time of the annual assessment. Agile performance management often sets goals (or "priorities") with quarterly "short-term" focus to maintain relevance to the company's changing priorities. It focuses on staff development as well as deployment and results.

In the traditional annual evaluation model, feedback is usually "saved" for evaluation interviews. This means that there is little impact because it takes too much time between events and feedback. However, agile performance management involves exchanging frequent feedback (staffs crave and deserve).

Why is agile performance management important?

Agile performance management may theoretically be good, but what is the proof that the company should implement it all? Tissue changes should not be done lightly. It goes without saying, therefore, that everyone is looking for practical business benefits to board

Get an insight into the benefits of agile performance management by lowering the annual rating of agile performance management with an impressive case study video from the UK's first large-scale bank, Clydesdale Yorkshire Banking Group.

Some additional statistics to consider are:

Companies that manage their goals quarterly generate 30% higher profits each year than companies that manage their goals.

According to Deloitte Research, a more collaborative company is usually twice as profitable and two times better than its competitors.

Almost all modern employees dislike performance evaluation every year. This stress ultimately leads to high employee fluctuations. In fact, Adobe found a high percentage of employees after an annual review. After switching to agile performance management, voluntary sales fell 30%.

Likewise, the way you conduct performance reviews doesn't give your managers confidence. According to CEB Research, 95% of managers reported that they are dissatisfied with current performance management processes and do not provide accurate information.

How to implement agile performance management

We recommend that you follow these steps to get your agile performance management system up and running properly.

Appoint employees-Leadership and management teams need to embrace the benefits of agile performance management (it's not difficult to achieve due to low opinion on traditional performance management). This useful video can help explain this. In addition, employees and managers need to understand why your company is making this transition, what benefits it has and how it affects you. Transparency and good conversation are key to a smooth transition. The lack of communication leads to resistance, confusion and frustration.

Providing appropriate training-Agile performance management requires rethinking and action. Just switching to regular performance discussions doesn't mean the management team knows how to do it automatically. Take the time to train your management correctly so you know what you're talking to directly with your employees. This is the only way managers can run with confidence and the only way to get support from their employees.

Create a dynamic goal setting process-This new system requires changing your approach to SMART goals. Instead of linking 12-month goals, employees should be encouraged to work with managers to define their own SMART goals that are short-term and fit their company goals. This means that it takes time to inform employees of the company's important goals. This is an important step that cannot be skipped. Employees need to know where the company is going and what they want to achieve to develop the company.

Offer development opportunities-Employees and managers will be more excited about the transition to agile performance management as they understand how they benefit. Explain how this new system can help you achieve your personal development and career goals. At regular check-in meetings, you can recommend by including an agenda for career and personal development.

Conduct regular reviews of the new system-regularly monitor the acceptance level of the new performance management system. Check out why there is very little acceptance and fix the problem as soon as possible.