5 Real-World Examples of Performance Management
5 Real-World Examples of Performance Management
5 Real-World Examples of Performance Management
Of course, it’s one thing to understand the theory of what performance management is, but it’s
another thing to use it in a real company. Let’s take a look at some real-world examples of the
performance management process in action:
It’s no surprise that Google would show up on a list of companies that use a newer, innovative system
of management. This company has always been a trendsetter, and their performance management
process is one that relies on data and analysis, as well as making sure that their managers are well
trained.
When assessing their performance management system, Google launched a project dedicated to
assessing their managers, which has led to a thorough training and future development process that
sets managers, and thus employees, up for success.
They also use a system of setting goals that have caught on across multiple industries. Using their
Objectives and Key Results (OKRs) system, they reframe the goal-setting process, with great results.
Another tech trendsetter, Facebook has a performance management process that puts a heavy
emphasis on peer-to-peer feedback. In semi-annual reviews, they are able to use that feedback to see
how well teams are performing and understand where collaboration is happening - and where it is not.
They also have developed an internal software to provide continuous, real-time feedback. This helps
employees solve issues before they become problems.
Cargill is a Minnesota-based food-producer and distributor with over 150,000 employees and serves to
demonstrate that even huge companies can ditch unwieldy performance appraisals and institute a
new system. In following the latest research on the dissatisfaction of management with outdated
performance management process, Cargill created their ‘Everyday Performance Management’ system.
The system is designed to be continuous, centered around a positive employee-manager relationship,
with daily activity and feedback being incorporated into conversations that solve problems rather than
rehash past actions.
The Everyday Performance Management system had overwhelmingly positive results, with 69% of
employees stating that they received feedback that was useful for their professional development, and
70% reporting that they felt valued as a result of the continuous performance discussions with their
manager.
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Adobe calculated that managers were spending about 80,000 hours a year on performance reviews,
only to have employees report that they left those reviews demoralized and turnover was increasing as
a result.
Seeing a system that only produced negatives, Adobe’s leadership team made a bold leap into a
performance management system that began by training managers how to perform more frequent
check-ins and offer actionable guidance, then the company gave managers the leeway they needed to
effectively lead.
Management was given much more freedom in how they structured their check-ins and employee
review sessions, as well as more discretion in salaries and promotions. Employees are often contacted
for ‘pulse surveys’ - a way for the leadership team to make sure that individual managers are leading
their teams well. One of the many positive results of this has been a 30% cut involuntary turnover due
to a frequent check-in program.
Accenture is a massive company - over 330,000 people, so changing their systems means a huge effort.
When they switched to their new system, they got rid of about 90% of the previous process. Now, they
are using a more fluid performance management process where employees receive ongoing, timely
feedback from management. This has been paired with a renewed focus on immediate employee
development and an internal app for communicating feedback.
There are common threads in all of these examples. Each company has built a system that works for
them, rather than following a one-size-fits-all approach. What works for one company might not work
for another - it depends on the industry, the speed and flexibility of the company, and the overall goal
of the system itself.