Performance Management: Transforming Workforce Performance in the New Business Reality

Accenture explores the practices of leading companies to help provide a blueprint for a more effective approach to performance management.

One of the effects of the recent recession is a renewed focus on how to think about and manage workforce performance. After a spate of cutbacks and redundancies, many workforces are leaner. Organizations are relying on a smaller pool of (hopefully) more effective talent. In managing the performance of these workforces, organizations are focusing on risk, sustainability and cost management—all components of the new business reality.

Performance management is set to play an increasingly important role in organizations’ ability to achieve business goals and ultimately attain high performance in this new world. However, many organizations lack an effective approach to performance management. To help organizations overcome this challenge, Accenture explores the performance management practices of leading companies. 

Accenture’s experience and research indicate that performance management is more than an annual review conducted by the HR department. Rather, it is a pervasive part of corporate life, comprising a continuous cycle of setting expectations, managing, coaching and developing. The practices of leading organizations have five characteristics. For these companies, performance management is:

• Strategic. In leading organizations, there is a dynamic link between enterprise and individual performance management.
  
  
• Engaging. At a time when it is at an all time low, leading organizations are finding ways to use performance management as a way to promote employee engagement.
  
  
• Commercial. Leading companies look for return on their human capital investments. Weak performance management is actually a demotivating factor for most employees.
  
  
• Integrated. Performance management that is integrated with strategies for attracting and developing talent over the longer term helps to improve the employee experience.
  
  
• Segmented. Leading organizations are building on a common foundation to tailor performance management practices to different individual and employee group needs.

With performance management set to become an important enabler of high performance in the new business reality, organizations should learn from the practices of leading companies to develop a more effective approach. In this way, they will be able to move beyond monitoring employees to attracting, developing and engaging individuals who will allow them to take the lead during the next economic cycle and beyond.