A new report from Deloitte highlights the strength of the trend away from traditional performance management systems -- some 89% of companies surveyed have recently changed their process or plan to change it within 18 months. What's driving this movement?
Interestingly, it's often the desire to align the processes used to manage a company's human capital with its business strategy and culture. Traditional performance management systems do not address some of the biggest challenges companies face today, including employee engagement, retention, and capability development, and in many cases they were making things worse.
Deloitte has recently revamped it's own approach, as detailed in an HBR article this month. The new approach separates compensation decisions from day-to-day performance management, produces better insight through quarterly or per-project “performance snapshots,” and relies on weekly check-ins with managers to keep performance on course.
Image source: Deloitte
-- Segundo Saenz