Frequent Feedback & Coaching – Transformational performance management

  

Figure I: Continuous Feedback: Benefit 

Traditional to modern approach

Performance management is a strategic business process that focuses on employee performance, aiming to meet goals efficiently and maximize individual or team potential, thereby enhancing organizational effectiveness and increasing business profitability (Ganeshkiran, 2022).

Most companies practice the traditional way of performance management, which is a top-down, direct process that starts with setting objectives early in the year. Management monitors employees against these objectives throughout the year. Near the end, evaluations are shared during annual appraisals by rating them. The manager discusses the employee’s performance, and if it falls short, a performance improvement plan is developed. Compensation for the next year is often determined by the past year's performance (management.org, 2022).

According to the Anon, 2018 there are the gaps identified in this traditional performance management approach.

• Continuous feedback is more effective than annual feedback as it allows for timely corrections and ongoing improvement, preventing minor problems from becoming major issues.

• Traditional reviews often neglect employee input, leading to demotivation. A balanced dialogue encourages active participation in development.

• Continuous performance management ensures regular check-ins and adjustments, providing clear direction and consistent growth, compared to fragmented goals set at the beginning of the year.

• Continuous performance management ensures regular check-ins and adjustments, providing clear direction and consistent growth, compared to fragmented goals set at the beginning of the year.

• Annual reviews are time-consuming and inefficient, while continuous performance Management streamlines the process by incorporating feedback and development into daily work.

Literature and the points discussed highlight the critical role of frequent feedback and coaching.  Providing timely adjustments to employees ensures better individual and organizational performance levels.

It highlighted the requirements of continues performance management that everyday work go through feedback coaching and development.

Revolutionizing Performance Management Case Study:  Success story of Netflix
The global leader in streaming entertainment, Netflix encourages a culture of continuous feedback, where employees regularly give and receive constructive feedback for give the innovative approach to their performance management system in line with 360 feedback method.
As well as focused on impact-driven goals, autonomy, personalized development, and transparency, inspiring and empowering employees to reach their full potential (www.linkedin.com. (n.d.).

 

Netflix Culture Explained: What is Feedback Like at Netflix: Source - youtube.com

Here are another two successful cases in the business world, who practice continuous performance management in action (www.linkedin.com, n.d).

Adobe : Adobe adopted continuous performance management in 2012, replacing annual reviews with frequent check-ins between managers and employees. They also introduced an online tool for employees to share feedback and track their objectives. This shift has led to increased employee engagement, retention, and productivity, with employees feeling more aligned with company goals and satisfied with growth opportunities.

Deloitte: Deloitte transformed its performance management approach in 2015 by replacing annual reviews with short, frequent "performance snapshots" focusing on four future-oriented question.

They have practiced the check in dashboard, Access to real time Feedback, Explore new career paths (Miller, 2022).                      

Conclusion

The transition from annual performance reviews to continuous feedback and coaching is a significant change in performance management. This method integrates real-time adjustments into daily work, promoting timely corrections, growth, employee engagement, and aligning development with organizational goals, demonstrating its effectiveness in today's competitive environment.

References

Anon, (2018). The Future of Performance Management: Continuous Feedback and Development. [online] Available at: https://www.linkedin.com/pulse/future-performance-management-continuous-feedback-development-rilae.

Ganeshkiran (2022). Traditional vs Agile Performance Management: Which is better? [online] Blogs | Resources. Available at: https://www.synergita.com/blog/performance-management-software/traditional-vs-agile-performance-management/#:~:text=What%20is%20Traditional%20Performance%20Management [Accessed 27 Jul. 2024]

management.org. (2022). Performance Management: Traditional and Progressive Approaches - Management Library. [online] Available at: https://management.org/performancemanagement/state-of-the-art.htm.

Miller, B. (2022). How we inspire great performance at Adobe. [online] Adobe Blog. Available at: https://blog.adobe.com/en/publish/2022/05/09/how-we-inspire-great-performance-at-adobe

www.linkedin.com. (n.d.). Case Study: Revolutionizing Performance Management at Netflix. [online] Available at: https://www.linkedin.com/pulse/case-study-revolutionizing-performance-management-qos6c.

www.linkedin.com. (n.d.). The Future of Performance Management: Continuous Feedback and Development. [online] Available at: https://www.linkedin.com/pulse/future-performance-management-continuous-feedback-development-rilae [Accessed 27 Jul. 2024].

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