Quite simply, organizations, managers and employees are running out of patience with the inability of performance management to deliver on its promise of aligning individual performance and development with business strategy. Particularly as business leaders think about the return on investment, the consensus is that today’s performance management programs aren’t paying off.
We hear quite a bit about the intended purposes of performance management, which include signaling business priorities, aligning individual goals with overarching corporate objectives, identifying high performers, and aligning rewards and development. But despite the resources being poured into the process and the constant tweaking, employers aren’t realizing these benefits.
Also, the nature of work is changing dramatically. Today, work is much more fragmented, complex and project-driven than in the past. In this context, traditional performance management is outdated and irrelevant. Organizations and employees are losing patience and simply saying, “There must be a better way.”