Q & A: Do Away With Traditional Performance Appraisals
Q: Beyond building performance dashboards, assigning “owners” to particular measures, and so forth, how do you hard-wire performance measurement into key management processes? A: I asked this question today in the Webinar, “Beyond the Balanced Scorecard, Improving Business Intelligence with Better Metrics,” presented by Mark Graham Brown , a consultant with 25 + years experience and author of three books on performance measurement. Here’s what he said. Do away with the traditional form of annual employee performance appraisal and replace it with a review of the organization’s performance dashboard. Make sure that performance has consequences for the employee, said Brown. A measure in the “red” should lead to negative consequences like salary decreases, and a measure in the “green,” i.e., a measure trending toward performance targets or goals, should lead to salary increases and promotions. To make this work, ideally, an organization would need to have a sophisticated performance ...