Module 2

Part 3
Performance Management System

KPI Professional Course

By
Dr. Nashwa Elsayed
Clinical Pathologist, Quality & Excellence Consultant
MBBS, MSc, MD, TQM, MQM, CPHQ, CPPS, CSSBB, ISO QMS Lead Auditor, Certified Excellence Assessor
 Part 3
Module 2
Performance
Management KPIs Management Framework Concept Map
System
Main Roles of Performance Management Systems
Balanced Scorecard
Integrating Tools into a Performance Management System
Performance Tools Overview
Governance
Integrating Tools into a Performance
Management System
 Performance Management Tools

Performance Management Tools are real-time software that helps managers and
leaders track the productivity of their business. With the help of an inbuilt data
management system, these tools organize and interpret the data to get productivity
insights into the organization. These insights further help leaders in making
informed decisions for organizational growth.
Critical management tools influence employee growth and organizational
development significantly. As it can help employees be engaged as well as help
business development
 Performance Management Tools

The following performance management tools are highly beneficial for

businesses:
1. Goal Setting Tools S.M.A.R.T Goals, OKRs and KPIs
2. Performance Review (Appraisal) Tools 360 Degree & 1:1
3. Surveys Tools Pulse Survey
4. Feedback Tools 360 Degree, 1:1
5. Learning And Development Tools Personal Development Plans, 9 Box Grid
6. Employee Appreciation Tools
 Goal Setting Tools

• S.M.A.R.T Goals
• OKRs and KPIs
 Goal Setting Tools

It is important to define performance plans and objectives clearly. Having plans that are
unclear creates a lack of interest in employees.
At the beginning of the year or at the beginning of the quarter, managers meet with their
employees and set clear goals and objectives for them. In this phase, managers plan on
‘how’ their employees should fulfill their goals and accomplish results. These goals should
be SMART and challenging.
It’s recommended the use of goal-setting tools that help you create objectives and key
results (OKRs and KPIs) and align your individual goals to those of the organization.
Performance management tools can help you use OKRs and get the best out of them.
 S.M.A.R.T Goals

As a performance management tool, SMART goals set an individual up for success by making
goals Specific, Measurable, Achievable, Realistic, and Timely (SMART). This performance
management metric develops a sense of encouragement, creates a pathway toward success,
and assists in setting and achieving goals.
Organizations use goal-setting software as a form of Performance Enhancer Tool as they
collect the essential aspects and turn them tangible for achievement. Goals also help
create a sense of accountability and allow individuals to assess the progress being made.
The rising culture of OKRs (Objectives and Key Results) has emphasized the goal-setting way
of work.
Organizations worldwide use OKR Software to set, track, and achieve goals.
 OKRs

“OKR” stands for Objectives and Key Results.

OKRs are an effective goal-setting and leadership tool
for communicating what you want to accomplish and
what milestones you'll need to meet in order to
accomplish it. OKRs are used by some of the world's
leading organizations to set and enact their
strategies.
Google, Netflix, and Amazon are some elite examples
of how OKRs and goal setting can take any
organization to unicorn heights.
OKRs vs KPIs
Components of OKRs
OKRs and KPIs
OKRs
OKRs
OKRs
Performance Review (Appraisal) Tools

• 360 Degree
• 1:1
 Performance Review Tools

It's a subjective evaluation of the employee's strengths and weaknesses, relative worth to
the organization, and future development potential. Performance appraisals are also called
Performance Evaluations, Performance Reviews, Development Discussions, or Employee
Appraisals
Performance Review is possibly the most ordinarily used tool. It’s a powerful one that can
help an organization align its goals to individual ones and track their progress and
performance over time.
If organization looking to derive the best results out of this tool, it need to make sure that
the appraisal process is a regular, fair, and constructive two-way conversation between
employees. If organization fail to create an environment where employees can speak freely,
they will get demotivated and will not stay with the organization for too long.
 Performance Review Tools

Performance Review & evaluations in performance management tools analyze the

entire workforce and prioritize people and skills accordingly. Employees get to know
about their strengths and weaknesses and can work on them accordingly.
Performance reviews ensure that constructive feedback is shared with the employees’
time-to-time rather than being swept under the rug for months.
Review as performance management tool discover employees’ skills and
competencies and simultaneously identify the top performers.
 Types of Performance Appraisals

1. 360-Degree Appraisal:
The manager gathers information on the employee’s performance, typically by questionnaire,
from supervisors, co-workers, group members, and self-assessment.

2. Negotiated Appraisal:
This type of appraisal uses a mediator to help evaluate the employee’s performance, with a
greater emphasis on the better parts of the employee’s performance.

3. Peer Assessment:
The team members, workgroup, and co-workers are responsible for rating the employee’s
performance.
4. Self-Assessment:
The employees rate themselves in categories such as work behavior, attitude, and job
performance.
 1:1

1:1 (One on One) as a performance management tool strengthens the relationship

within the teams and enhances overall employee competency.
1:1 helps acquire uninterrupted sessions with employees to review performance,
eliminate barriers, talk plans, and much more. This performance management tool
creates the opportunity for employers to get to know their employees on a personal
level and make them feel valued.
one on one performance management process develop team loyalty and create a
sense of security. Enhance the morale and productivity levels and harbor a
structured management and smoother communication.
 360 Degree

A 360 Degree performance tool accelerates the performance capabilities of

all employees by 3x with multidirectional reviews and comments.
Organizations use 360 Degree to provide quality feedback. Employees
receive the same from not just their managers but from everyone around
them. From colleagues to customers, they get a complete 360 Degree insight
into the employee and their performance.
A 360 Degree feedback as a performance management tool obtains employee
insights with improved transparency, data-driven processes, and easy
configurations
 Functions of Performance Appraisal

Providing adequate and quality feedback to employees in accordance

with their skills and performance

Serve as a performance changer to develop effective working

habits

Provide data to managers through which they can evaluate future

work assignments
 Feedback Tools

• 360 Degree
• 1:1
 Feedback Tools

Frequent Feedback is one of the best practices for tracking performance progress and
improving it from time to time. This practice helps not only employees but also the
team and the entire organization increase their productivity.
While most organizations already have digitized the process of employee feedback,
many organizations claim that implementing a feedback tool has helped them create a
culture of frequent feedback, which in turn, promotes employee engagement. These
feedback tools also include 360-degree feedback and peer-to-peer feedback.
 Continuous Feedback

Continuous feedback as a performance management tool improves

employee morale and provides insights in real-time. Additionally, it also
minimizes the time taken on task completion and ultimately creates an
employee-centric and growth-driven process.
The entire process focuses on fairness. This practice build a culture of
trust and continuous development. Using feedback software can make
this practice easier to implement. Allows users to share, receive, and
request feedback from their managers, team members, and peers.
 Surveys Tools

• Pulse Survey
 Pulse Survey tool

Pulse survey tools are a simple, powerful, and flexible way of collecting employee
feedback and reading the pulse of employees. The result can help in understanding
employees better and, in turn, can help organization strategize for better employee
engagement.
Proper engagement surveys come from a well-set intention and well-defined goals.
Moreover, they need to be frequent enough to show trends in temperament and
attitude.
If the intention is unclear, these surveys will ask unimportant questions and receive
vague responses. In such a scenario, it won’t be enough to take any action.
 Pulse Survey tool

Pulse surveys are a brief and regular set of digital questions sent to employees as
engagement surveys. They depict matters related to job roles, communication, relationships
within the workforce, the working environment and culture, etc. The term pulse is used to
signify the continuity of these surveys to gain employee insights.
The sense of anonymity that comes with this performance management tool creates a more
reliable and honest culture.
Pulse surveys develop a safe passage of communication for employees’ feedback. They dig
deep and figure out all the company’s triggers and gauge the workforce’s overall mood.
Generating short and easy surveys as a performance management tool for employees leads
to greater participation and robust results.
Learning And Development Tools

• Personal Development Plans

• 9 Box Grid
 PDP (Personal Development Plans)

A performance development plan is a very effective mechanism for

building up employee performance. Both managers and employees
benefit greatly from the PDP process, which helps in identifying areas for
growth, strategies to achieve that growth, goal setting, and tracking.
The PDP tool assists people in identifying areas for improvement, setting
goals by measuring progress, and outlining a strategy to achieve the set
objectives.
Organizations also provide on-the-job training as a PDP tool to their
employees to renew their careers and enhance professionalism in work.
 Personal Development Plans

Some key benefits of these tool include:

• A definite path to achieve goals
• Measurable goals, improvement, and results
• More distinctive alignment with organizational and team goals
• Definitive employee development and accountability
• The PDP process encourages and motivates employees to direct their growth
toward organizational progress. It helps streamline the performance process and
inspires success.
 9 Box Grid

The performance management tool for improved succession

planning and identifying the future leaders within the
workforce. A 9 box grid distinguishes the employees’
performance according to their skills and accomplishments.
Furthermore, it assesses the potential growth of each
individual.
9 box grid is an influential performance management tool that
segregates the workforce into nine groups according to their
current performance and future potential.
The performance management tool that streamlines talent
management allocates the employees of an organization into
nine groups. Furthermore, measures and monitors their
potential, and builds a culture of leadership among the
workforce
Employee Appreciation Tools
 Employee Appreciation Tools

Most employers forget to appreciate their employees’ good work, but

they specifically remember to criticize when something goes wrong. This
practice not only promotes disengagement but also creates a sense
of dissatisfaction in employees, which directly affects their productivity.
Using an employee recognition tool could be the start of changing
organization culture to one that promotes appreciation and recognizes
employees for even the smallest of their progress. allows to recognize
employees socially for any contribution that they’ve made to the
organization.
 Benefits of Performance Management Tools

1. Provides Clarity
Performance Management provides a clarity to the employees
related to their performance. It helps them to understand their
goals achieved, targets that are yet to be achieved etc. It helps
them to make necessary strategy to achieve their goals on time.
2. Improves Employee Efficiency
Employees are provided with appraisals and promotion based on
their performance scale. If they are performing well they are likely
to get a salary hike or promotion. It motivates employees to
improve their performance so that they can get appraisals.
3. Enhances Job Satisfaction
As soon as employees get clarity of their job role and targets
they are more satisfied with their job role. It also creates
opportunities for self improvement, defined career path etc. This
autonomy turns employees towards their growth which ultimately
results in job satisfaction.
 Benefits of Performance Management Tools

4. Increases Employee Motivation

PMS tools shows the top performers of the month which in turn
motivates the employees to provide their best so that they can
grow in their career.
Companies can choose to provide appreciation or monetary
benefits to those employees who outperform during a particular
period.
5. Enables Decision Making Power of Employees
Timely performance management of employees enhances the
decision making power of employees as it guides them what is
good for them in order to achieve their targets on time. Enhanced
decision making skills helps employees to achieve their targets on
time.
Governance
 Governance of Performance Management

Defined the organization’s performance

review meetings

Planned the annual cycle,

Definition of critical performance

governance activities

Assigning clear roles for organization

staff.
 Governance of Performance Management

These governance activities are all the tasks that need to be

performed in order to ensure that the performance
management system operates optimally.
High-level performance governance activities include (but are
not limited to) maintaining and updating the data model,
updating and adjusting visual performance dashboards,
tracking performance improvement initiatives and executing
performance review meetings.
 Governance of Performance Management

To define your organization's performance governance activities, experience shows that a responsibility
assignment matrix or RACI-matrix can be a helpful instrument.
A RACI-matrix describes the participation by various roles in completing tasks or deliverables for a
project or business process. The four roles include:
• R = Responsible: those who do the work to complete the task.
• A = Accountable: those ultimately answerable for the correct and thorough completion of the
deliverable or task (final authority).
• C = Consulted: those whose opinions are sought, typically subject matter experts; and with whom
there is two-way communication.
• I = Informed: those who are kept up-to-date on progress, often only on completion of the task or
deliverable; and with whom there is just one-way communication.
 Stages of Performance Management

A performance management system includes various important

functions:

ü Goal-setting
ü Feedback

ü Rewards

ü Performance Review

An effective performance management system helps managers

establish clear performance expectations through which employees can
easily understand what to expect out of their jobs. Moreover, it allows
managers to reinforce individual accountability to meet their goals and
evaluate their own performance for employees.
 Stages of Performance Management

Plan
The planning stage comes first. Here, you
define individual goals & strategies clearly
and communicate them organization-wide so
that your employees understand that meeting
their individual goals contributes to the
organizational goals.
Coordinate with your employees before
setting up their individual goals and make
sure that the goals are SMART (Specific,
Measurable, Achievable, Relevant, and Time-
bound).
 Stages of Performance Management

Monitor
After you define the goals and strategies for
your employees, you should constantly keep
track of their improvements and take care of
their developmental needs. Monitoring
continually means providing ongoing
feedback and consistently measuring
employee performance.
It helps you check if the employees are
meeting their goals as planned.
 Stages of Performance Management

Rate
Rating means evaluating employees based on
their performance standards. Though this step
is a part of monitoring and giving feedback,
it is considered a more formal way to evaluate
employee performance. It also helps
managers know who their best employees
are.
Rating employees at regular intervals helps
them improve themselves. It also helps
managers look at and compare performance
over time or across a set of employees.
 Stages of Performance Management

Reward
Effective managers understand
the importance of rewarding employees who
perform well. Employees feel empowered and
motivated when their work is recognized.
This leads to increased productivity in the
organization. So reward the employees who
meet your expectations or exceed your
expectations.
 Stages of Performance Management

Upgrade
Keep upgrading the goals & strategies at
regular intervals. If your employees feel that
their existing goals seem unattainable or that
they have a negative impact on
the organizational work culture, then it is time
to coordinate with your employees and
change them.
 Stages of Performance Management

Mentor and Coach

It is said that there are no such things as poor
performers. So if there are employees in your
organization that are showing up with mediocre
performance, then they are just waiting to be
discovered for the right talent that they have.
With coaching and mentoring tools in place,
your organization can bring out the best in every
employee. If tapped right, can you imagine
where these tools can take your organization?
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