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Management Observation Program Best Practice 9 – Feeding the Performance Management Program

StrategyDriven Management Observation Program Best Practice ArticleMost companies employ a periodic employee review program, typically comprised of a major annual review and sometimes complimented by a formal mid-year feedback session. Examination of these programs reveals most performance ratings are based on those individual behaviors, events, and accomplishments occurring within a few weeks of a review’s development. Consequently, employees achieving great success throughout the year, particularly those with significant achievements earlier in the period, feel cheated by a process that frequently overlooks these accomplishments.[wcm_restrict plans=”41942, 25542, 25653″]

A well-executed management observation program dramatically improves the formal performance review process. By implementing StrategyDriven’s recommended best practice of documenting management observations (See StrategyDriven article, Documented and Signed Observations), managers make available the evidence of both commendable and deficient employee performance spanning the entire evaluation period. Drawing from this repository to develop formal performance reviews provides a semi-homogeneous picture of performance complete with employee acknowledgements; significantly bolstering the review’s credibility.

Key to enabling performance management input from the management observation program includes:

  • Documentation of management observation program findings with conclusions of individual performance supported by specific examples
  • Individual observations collected and stored in the employee’s performance file
  • Executives, managers, or supervisors performing an observation review the results with the employee at the time of performance
  • The individual signs for acknowledgement of the performance observation at the time of performance
  • Performance observation conclusions reference established performance standards
  • Observations document the significant accomplishments of individuals as well as the shortfalls; sometimes at the individual’s request. This includes follow-up reviews/interviews to ascertain the individual’s performance quality if direct observation did not occur

Note that observations performed by executives, managers, and supervisors external to the employee’s work group should also be collected and filed within the individual’s performance file for use during annual review development. Such a practice adds breadth to an individual’s performance evaluation; enhancing the credibility of the overall review because of the added substantiation of performance conclusions. Additionally, it helps align performance ratings across the organization; further enhancing the program’s credibility because of the increased equality in performance ratings between work groups.

Final Thought…

In the author’s experience, it is helpful to tell the individuals observed that the documented observations will contribute to their overall performance appraisal. This communication tends to further enhance the individual’s day-to-day performance as the consequences of complacency have significant ramifications beyond the one-off observation itself.[/wcm_restrict][wcm_nonmember plans=”41942, 25542, 25653″]


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StrategyDriven Podcast Special Edition 17 – An Interview with Garry Ridge, co-author of Helping People Win at Work

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 17 – An Interview with Garry Ridge, co-author of Helping People Win at Work explores the Partnering for Performance management system and how it engages employees to assess and improve their performance to unprecedented levels. During our discussion, Garry Ridge, President and CEO of the WD-40 Company and co-author of Helping People Win at Work: A Business Philosophy Called “Don’t Mark My Paper, Help Me Get an A” shares his insights regarding:

  • the importance of building a “tribe member” versus an employer-employee relationship with organization members
  • how the Partnering for Performance system engages tribe members to develop their own performance assessments and take responsibility for their own development
  • benefits of eliminating the manager developed performance assessments, forced rankings, and bell curve performance distributions of traditional performance management systems
  • steps needed to move an organization, particularly its culture, to embrace the Partnering for Performance system
  • quantified improvement in bottom line results achieved after implementing the Partnering for Performance system at the WD-40 Company

Additional Information

In addition to the incredible insights Garry shares in Helping People Win at Work and this special edition podcast are the additional resources accessible from his The Learning Moment website, (www.TheLearningMoment.net). Garry’s book, Helping People Win at Work, published by FT Press can be purchased by clicking here.

Final Request…

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About the Author

Garry Ridge, co-author of Helping People Win at Work, is President and CEO of the WD-40 Company, the San Diego, California based maker of the ever-popular WD-40, as well as the Lava heavy duty hand cleaners, Carpet Fresh, and 2000 Flushes household cleaning products. Garry teaches leadership, talent management, and succession planning at the University of San Diego’s Executive Leadership program and in 2003 was named Director of the Year for Enhancement of Economic Value by the Corporate Directors Forum. A native of Australia, he has served as national Vice President of the Australian Institute and the Australian Automotive Aftermarket Association. To read Garry’s full biography, click here.
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