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April 06, 2006
The Problem with Performance Management
I'm not against performance management systems. They promise to bring something really essential to the covenant between employees and employers: objectivity. Whether they're really able to measure the important things is another matter--and, I suspect, will always be highly inflected by the kinds of contributions a given worker is asked to make. But if you're considering PMS, that's a call you'll have to make.
What I am against is performance management systems being touted as the keys to increased productivity. At best, they can measure the impact of a healthy workplace--that is, there will always be a correlation between higher measures and happy employees.
But there's a huge difference between causality and correlation. And while the sales forces that sell these systems (and the consultants that help you figure out what to measure) will try to hook you on the virtuous cycle the technology enables, the reality is that it is the correlation between what the organization says about itself--its mission, values, vision, business strategy and so on--and what it does--how those values are manifest, or not--that drives employee satisfaction and in turn, productivity.
Why should you care? Because there are already a lot of sticks in the world and not enough carrots. Listen, most people show up to work because they have to, but most also want to find their work meaningful and important. So, want to improve performance and productivity? Remove barriers between the people and the work.
There's an old, oft-cited truism that sums this up quite well: it's not the mountain in front of you, but the pebble in your shoe, that slows your progress. So instead of measuring mountains, shouldn't we spend a bit more on brooms to keep the paths pebble-free?
Posted by davidkippen at April 6, 2006 12:13 PM