In the era of digital transformation, where tech-based solutions are everywhere, it's disappointing to see many things are still not working. Despite the proliferation of performance management software designed to enhance employee performance and drive organizational improvements, many companies are still struggling. Even more concerning, as reported in recent workplace studies by Gallop and Slack, employee engagement is at an all-time low. So, what's the missing link here?
The Illusion of Automation
The "tool" solves our problems, right? Wrong! One of the primary reasons companies continue to grapple with performance issues lies in the illusion that software can automate the human aspects of management. Performance management is not a mechanical process; it's a nuanced, human one. While software can certainly assist in data collection and analysis, it cannot replace the essential element of human interaction.
Neglecting the 'Why'
Another common pitfall is the fixation on 'how' to measure and manage performance rather than addressing the 'why' behind it. Performance isn't merely about achieving goals; it's about understanding the purpose behind those goals. When companies neglect to align their employees' work with a greater sense of purpose and meaning, disengagement follows. Everyone must know the WHY! And sharing it once to an employee isn't good enough. It must be shared and repeated almost weekly, if not monthly.
Data Overload
Data can be a double-edged sword. While performance management software provides a wealth of data, it's often overwhelming. Companies find themselves drowning in metrics and Key Performance Indicators (KPIs) without a clear strategy for interpretation and action. Instead of empowering decision-making, data overload can paralyze it.
The other day, a CEO shared he had over 20 metrics/goals that his management team were looking at every day. Why so many? Think less is more and the classic 80/20 rule. 80% of a company's performance will be in 20% of the metrics. What are the 20%? Ask your people!
Change Management: A Critical Missing Piece
One of the key elements missing in all this is embracing the "change". Introducing new software or methodologies without considering the impact on your organization's culture and processes can lead to resistance and, ultimately, failure.
It must be woven into the culture and cadence of the organization. For example, in weekly 1 on 1's, performance and the metrics MUST be discussed. And how that person's performance is driving the team and the company's performance should be part of every week's conversation.
And now my favorite one...
Not industry and stage optimized.
There is a lot of software out there around the area of performance management, particularly around goals/metrics, however few if any consider it from an industry or a stage perspective. So nearly all software albeit useful starts from a blank canvas. Software should make things easier, not harder. Companies shouldn't need months of consulting just to configure the software and get started. The ideal platform would simplify setup through guided workflows for specific industries and stages. With a conversational interface, the software could ask smart questions and generate customized frameworks tailored to a company's needs. This would enable quick implementation in hours or days rather than months.
In conclusion, while performance management software can be a valuable asset, it's not a panacea for all performance-related challenges. By combining the efficiency of technology with effective change management, companies can bridge the gap between their software's potential and the actual realization of high employee engagement and performance. Start with your people from the bottom up. They know and want to succeed more than you might realize.