Design and Implement a Fact-Based, High-Validity Performance Process
One of the foundations for strategic talent management is fact-based performance and potential assessments. The process and the outcome will never be perfect. But you can come close to “next to perfect”. Are we relevant as a partner to you? If you already apply people reviews, nine-grid assessments, calibration meetings or the like, all you need to ask yourself on a 1-10 scale is:
To what extent can we rely on the output from our current performance process?
To what extent are our individual performance and potential assessments fact-based?
To what extent are our leaders able to make fact-based assessments of leadership behavior?
If your answers are 8 or above, you are doing fine. If the answers are below 8, you may want to give us a call.
The People Review Process Will Remove Most Flaws
The people review process, however, will enforce accountability of performance ratings as each leader will be accountable to their direct manager and their peers for the performance ratings that they have given. This will in itself push leaders towards being more objective and evidence-based in the ratings of direct reports.
Even if the leaders are not affected by this fact, the people review will be the safeguard to ensure proper calibration of ratings across the teams.
The people review process provides a dynamic and objective overview of the organization’s ready-now talent. It can be a key vehicle in the organization’s approach to the selection of talent. It can form the basis of both the elitist approach and the broad approach towards talent management.
The people review process provides you with a detailed and consolidated overview of people who are ready for promotions within the next 12 to 18 months. At the same time, it forms the basis of evidence-based selection of long-term talent.
Traditional Performance Processes Are Flawed
Most organizations apply a one-and-one approach to performance reviews. However, studying consolidated performance distributions, we often find that they are quite skewed towards the higher end.
There are many good reasons for that and one of the most prominent is probably that many leaders are afraid that they de-motivate their direct reports if they do not give them a performance rating or potential rating on the high side. Also, it is easier to confront people with good news than bad news.
Whereas we would certainly advocate for regular one-and-one performance reviews, they cannot stand alone if you want to take a strategic approach to talent management.
