Standards and Expectations – Defining Performance Standards, part 1 of 8
Standards and expectations define how work is to be performed; providing guidance for the consistent, efficient, value-based execution of tasks. At the outset, developing a comprehensive set of performance standards often appears to be an overwhelming and daunting task as employees within even the ‘least complex’ organizations perform countless different activities every day. However, it is not intended that performance standards be developed for every conceivable activity. Rather, standards should be formulated for those activities reflecting organizational values, implementing corporate strategy, and presenting significant risk. The documented basis behind this finite set of standards provides the guidance needed for employees to make rational judgments about the conduct of less significant activities.[wcm_restrict plans=”53506, 25542, 25653″]
Introduction – Purpose of and Philosophy behind Performance Standards
Performance standards and expectations establish expected behavioral norms for all of members of the workforce; helping to create consistency in results aligned with the organization’s values and strategies. Therefore, it is important to understand the inter-relationship between performance standards, employee behaviors, and the resulting outcomes.
Standard Rigidity and Behavioral Variation
The specificity of performance standards can be said to very across a broad spectrum from the highly interpretable to the highly defined. Subsequently, the allowance for employee interpretation of the prescribed performance standards, which they then translate into behaviors, is also variable. As illustrated by Figure 1, Standards Rigidity and Behavior Variability, the following relationship can be said to exist between the level of standard definition and employee behavior:
Low Standard Rigidity
- high individual judgment / initiative
- high variability / low consistency
High Standard Rigidity
- low individual judgment / initiative
- low variability / high consistency
Note that two factors helped to define the level of standard rigidity applied; organizational level and work environment and job function. In the case of organizational level, the higher the position within the organization the less prescriptive job tasks tend to become. While activities such as strategy development, personnel mentoring, and priority setting, are often assigned general guidelines, the expectations surrounding these activities do not lend themselves to the same high level of definition that can be assigned to more production oriented work. Likewise, the more creative the work environment or job function the less rigid performance standards and expectations tend to be.
Results Variability
As variability goes, so does consistency. Thus, the more variable employee behavior becomes, the less predictable the resulting outcomes. Consider the relationship between behavioral variability and results highlighted by Figure 2, Behavior Driven Results Variability. Low behavioral variability, associated with more rigid standards, results in greater performance consistency between employees which in turn results in more similar outcomes. Less rigid standards tend to encourage greater application of individual judgment and initiative resulting in greater variability in resulting outcomes.
Behavior driven results variability reflects the risks involved with loosely defined performance standards. The greater the allowed behavioral variation, the greater the expected outcome variation, and subsequently the greater the risk of realizing adverse consequences. Therefore, when developing performance standards, it is important to consider the criticality of achieving a desired result as this will drive the degree of standards rigidness.
Performance Variability and the Results Spectrum
Performance standards are intended to shape employee behaviors to the achievement of organizational values and goals. However, not all values and goals will share the same priority or significance; some will be absolutely necessary while others will be considered nice-to-dos. This establishes the level of results quality or degree of excellence for which each value and goal will be pursued and the rigidity of the standards to be developed.
Figure 3, Performance Variability and Results Spectrum, highlights the naturally occurring degree of performance variation associated with the quality level to be achieved. High quality results demand high consistency of behavior in order to be achieved and are subsequently assigned more rigid standards. As the need for quality diminishes, so too does the relative rigidness of the performance standards applied.
It is important to note that no outcome on the Results Spectrum should be viewed as ‘bad.’ In some instances, allowing something to fail before taking action is an acceptable management practice. Likewise, not all activities need to be of the highest quality.
Maintaining Balance among Performance Standards
Remember that the purpose of performance standards is to influence employee behavior toward the achievement of a desired result. Therefore, when defining performance standards, executives and managers must take care to balance the strict discipline needed for highly consistent and precise results with the application of individual judgment necessary for flexibility and efficiency.
Excessive emphasis on any one standard can be detrimental to related performance in another area. Below is a list of basic characteristics around which standards are often developed that require balance consideration:
- Quality – Cost
- Quality – Time
- Time – Cost
Note that there are some instances where the impact of an undesired outcome is so severe that extremely rigid standards are applied. The consideration of balance for these circumstances is usually considered to be unimportant.
Defining Performance Standards
Defining performance standards and expectations for organizational values, strategy, and risk significant activities need not be an obscure task. The following seven step process can be used to develop performance standards governing impactful employee activities:
- Define the organization’s values, strategies, and risk factors
- Translate the values, strategies, and risks into a picture of results
- Identifying the activities and processes that directly and indirectly contribute to these results
- Isolate the behaviors that when exhibited during execution of the activities and/or processes yield the desired results
- Define the content of the standards
- Capture the standards in an appropriate, recallable medium
- Communicate and reinforce the performance standards
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When Does Change Happen?
Recently, a client called to ask for help: she wanted her franchisees to add Buying Facilitation® to their sales skills so they could close more sales.
I sent them a couple of blog posts to help them rethink the differences between pushing a solution and first managing the change that a new solution would require. We then had a phone conference.
With a 2% close rate, these folks defended their current skills: by any rational standard they rejected the possibility of being more successful, preferring to maintain their status quo. Were they irrational?
I don’t believe in the words ‘irrational’ or ‘rational.’ Like all decision makers these folks made the best decision they knew how to make at that moment in time: they are being totally rational – within their unique system of beliefs and values. These folks are more comfortable with their status quo than they are with the prospect of change, even at the expense of more money and more clients.
What is Change?
Change isn’t just a matter of having a new thought, or adding a solution, or asking folks to take on different tasks because if people had agreed that something was wrong and knew how to change it congruently, they would have changed already. The environment people live in is the sum total of all of decisions to date.
Change requires that we somehow integrate the new with the decisions and behaviors we’ve already created and maintain daily. Until or unless we figure out how to reconfigure our rules, roles, relationships, and ego issues, we will take no action – even if it means sticking with something that’s less than successful.
Broken Change Models
No current change management or sales models handle this problem. Before you decide to change, answer the following:
- What would you need to know or believe differently to know when it would be time to make a change?
- What rules and roles and relationships in your current environment would need to be maintained in order to adopt change without disrupting the integrity of your system?
- What is it about your status quo that would need to be addressed prior to planning change in order to ensure that anything new wouldn’t destroy what you already do successfully?
Because until or unless you can be assured that you can make a change that is integrous with who you are, and get the appropriate buy-in for change, you will do nothing.
The big question is: what sort of buy-in would you need? And how could you go about getting it in a way that would be acceptable and welcomed by the system.
About the Author
Sharon Drew Morgen is founder of Morgen Facilitations, Inc. (www.newsalesparadigm.com). She is the visionary behind Buying Facilitation®, the decision facilitation model that enables people to change with integrity. A pioneer who has spoken about, written about, and taught the skills to help buyers buy, she is the author of the acclaimed New York Times Business Bestseller Selling with Integrity
Leadership Inspirations – Find Time By Making Time
“You will never find time for anything. If you want time you must make it.”
Charles Buxton(1823 – 1871)
English brewer, philanthropist, writer and Member of Parliament
StrategyDriven Podcast Special Edition 37 – An Interview with Ann Marie Sabath, author of Business Etiquette
StrategyDriven Podcasts focus on the tools and techniques executives and managers can use to improve their organization’s alignment and accountability to ultimately achieve superior results. These podcasts elaborate on the best practice and warning flag articles on the StrategyDriven website.
Special Edition 37 – An Interview with Ann Marie Sabath, author of Business Etiquette, explores the often unwritten and unspoken rules of behavior for the business world that when applied differentiate business professionals from businesspeople; setting them apart and helping them climb the corporate ladder. During our discussion, Ann Marie Sabath, author of Business Etiquette: 101 Ways to Conduct Business with Charm and Savvy
- impact of increasing workplace diversity on business etiquette protocols and the importance of the Platinum Rule
- resolving conflicts between etiquette and efficiency
- rules of email and Blackberry® etiquette
- handling situations in which you will be late (e.g., a meeting or task)
- dealing with unfamiliar acronyms and technical terms during conversations in business and social settings
Additional Information
In addition to the invaluable insights Ann Marie shares in Business Etiquette
About the Author
Ann Marie Sabath, author of Business Etiquette
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Performance Appraisals – Can They Really Be ‘Stress-Free’?
Performance appraisals are one of the most important responsibilities of a supervisor… and one of the most dreaded!
Why?
Perhaps the better question is – What can we do to remove the ‘dread factor?’
One way is to identify the five most important tips and make sure all your managers get a copy.
Tip #1 – Take time to prepare
Start by familiarizing yourself with the form and the ratings. Think about the goals each employee has been working on, the employee’s strengths and areas for development. Pull out all the examples and observations you’ve collected throughout the review period and add them to the appraisal form to support your ratings.
Plan your discussion in detail – not just compliments, but also areas for improvement.
Then, schedule the meeting and plan enough time for a thorough discussion. Select a time when you and the employee are not under pressure.
[wcm_restrict]Tip #2 – Start the meeting in a positive way
Always conduct a warm-up and try to put the employee at ease. Stress the routine nature of it and tell the employee you have many positive things to say (if that’s true).
Outline what you want to cover and in what order. Let the employees know he or she will have a chance to raise issues and be an active participant in the meeting.
Explain that appraisals are designed to help the employee know how he or she is doing. Make sure you are on the same track in terms of realistic goals and priorities.
Provide a forum for problem resolution and feedback to help the employee succeed.
Tip #3 – Plan the discussion in detail
Start with the positives. Say things like “You’ve made important contributions this year.” “I’m impressed by your performance on _________.” “You’ve been more conscientious about ________.” “I was pleased to see ______________.”
Work your way through each section of the form– use it as a tool for facilitating discussion.
Review significant accomplishments – give praise and credit (nothing is more stimulating/motivating).
Ask open-ended questions to get a general reaction. Many start with “How do you think things have been going” “Do these ratings seem fair?” “What would you do differently?”
Consider asking other questions to facilitate discussion: What did I do for you in the last 6 months that really helped your performance? What hindered your performance? What can I do in the next 6 months to help you? What do you want most from your job? Under what conditions do you do your best work? How would you like to receive suggestions for improving your work? How can I help you reach your career goals? What inhibits your best work?
Discuss areas where the performance falls short – with specific examples. “I was concerned _______________.” Focus criticisms on performance, not personality characteristics.
Don’t discuss areas for improvement in a way that will seriously disturb a good employee. The net result is to be encouraging. Identify specific actions the employee can take to improve performance. Ask for their suggestions.
Work for understanding rather than complete agreement. You can agree to disagree.
Tip #4 – Close the meeting in a positive way
It’s just as important to end the meeting in a professional and positive manner, as it was to start the meeting. You want the employee to leave the discussion with a positive impression of the process.
Ask the employee to summarize what was discussed.
If the employee introduced issues that would make you consider changing their evaluation, apologize for your oversight and tell employee you would like a few days to consider how this information might effect your evaluation.
Settle on a plan for the future. It’s important to let the employee have input. Write goals together. Make them measurable, challenging but achievable.
Offer your help. Express confidence that the two of you can successfully work through any issues.
Think about training, skills development, opportunities or added responsibilities.
Ask the employee to add any last thoughts/ questions/ reaction to the performance appraisal meeting; (“What’s been learned?” “Surprises?” “Was it fair?” “Your general reaction?” “ If you have more reaction later, my door is open.”).
If the employee disagrees with any points brought out, let him or her know he or she has the response options offered by your organization.
Share your ideas on where the dept is headed. Employees want to be in the loop.
Close on a friendly note – let them know they’re part of the team, that their performance matters to the company and the department.
Both sign and date form. Explain that signing the form merely indicates that the form has been discussed with him or her and indicate the date of the appraisal discussion.
Tell them you’ll continue to give feedback throughout the year.
Tip #5 – Remember your follow-up responsibilities
Follow up on commitments you’ve made for support, training, etc.
Begin observations for the next performance discussion with employees and record them!
Following these simple steps will eliminate the stress and uncertainty usually associated with performance appraisals. Now your managers can start to focus on making the performance appraisal a powerful management tool.[/wcm_restrict][wcm_nonmember]
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About the Author
Sharon Armstrong, author of The Essential Performance Review Handbook
