Why an agile performance management is the best approach

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Roly Walter
Roly Walter
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Founder and CEO
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8
min read
February 10, 2020
September 20, 2022
An agile approach to performance management
In this article

Every organisation has their own challenges. It makes sense for each one to approach to performance management in an agile way and find their process.

Agile performance management

Over the years, I’ve spoken to hundreds of organisations to help them find their own performance management process that meets both their needs and supports their culture. I’m a firm believer that there is no magic formula, every organisation is different and trying to impose a rigid approach, slavishly copied from someone else, is doomed to fail.

This is the crux of our philosophy. We work with each of our customers to help them find an approach that works for them. This seemed to resonate with both our clients and others in the industry I speak to, so I thought I’d explain it in more detail. I hope it encourages you to have faith in creating your own unique performance management approach that works for you.

Roly Walter - Founder of Appraisd
Roly Walter, Founder of Appraisd

Performance culture: One size doesn’t fit all

Every year around Christmas time you see articles in the industry press and now even in the national press about the dreaded annual appraisal. It’s the same thing each time: it takes far too long; it feels pointless and so on. I know everyone reading this will have seen or heard these messages too.

I have no issues with people complaining about appraisals. What I do take issue with is these ranty articles. There’s just something annoying about people complaining about the same thing again and again. To me, this means there’s something there that won’t quite budge. There’s some resistance. Perhaps even something worth keeping hold of.

For the record and the avoidance of doubt, let me just tell you that I think having a single sit-down performance review once a year with your manager with nothing in between is insane. I think we’re all agreed that frequent, regular discussions with your manager are essential in the modern workforce. In fact, according to a 2018 Forrester paper that was commissioned by Workday, “those with monthly or continuous performance processes are 1.4x to 1.5x more effective at engaging and retaining employees than those with annual processes.”

But I also think it’s insane to ignore the quieter voices that you don’t always hear. I spoke to a GP friend of mine about appraisals – and that is what they call them – and he thinks it’s a vital system. In fact, he’s training to become an official appraiser!

I’m interested in the grey areas – not the black and white. Let’s just calm down a bit.

A recent study said that 16 % of employees dread the thought of their annual reviews, but presumably, this means that 84% don’t.

The point I’m making is that performance management is a topic that requires a nuanced, considered approach, an approach of listening and finessing. An approach that takes input from the community (your employees) not just the brainwave or ideology of one person. And, also which considers the overall aims of the organisation.

I’m talking about evolution, not revolution, introducing agile performance management. And the problem with my message is that it's not as exciting. The person who makes small incremental changes to the performance management process will not get the glory of the person who tears it all up and starts again. But incremental changes are often the way forward.

Some of the common problems we hear are:

  • it takes too long to decide on a rating
  • information is out of date
  • lose track of what’s happened
  • too focused on assessment, not the future

But:

  • we do like to take stock and reflect
  • I don’t realise how far I’ve gone unless we reflect on a year
  • I only want to talk about my career once a year

These are all valid. Let’s bear these in mind while we now strip things back to building blocks.

First, let’s look at the ingredients for any performance management process – and by process, I don’t mean the technology just yet – I mean the approach, the method.

Here are some of the most common tools used to encourage performance. I’m kind of going back to basics here.

Objectives, or goals, expectations, or priorities

All different words for the same thing: they give clarity to employees on how to make decisions. Each employee faces choices every day. Should I do this, or focus on that? These goals will help them decide for themselves on the right thing to do. Everyone should have a goal, even if it’s just to keep the reception tidy for the next 20 years.

How often should you set them? For some people, it should be once a month, once a quarter. For others, the same one will do for five years. The question to you is: are you copying what another organisation is doing around objectives because you read about them in the news, or are you finding out what works for yourself? Are you allowing people within your organisation to adjust the system to suit their department or level of seniority? No one knows your business better than you, so have the confidence to build an approach that meets your unique needs.

Feedback, praise, recognition

What we hear is younger people want feedback all the time so that they can get ahead and develop themselves, older people are looking more for recognition. Make sure you’ve thought about both when designing your performance management process.

Career and personal development

How often should you have a chat with your manager about your career? How long does it take to make a meaningful difference in your career? Most people don’t get promoted more than once every two years. So why would you talk about it every month? Far better to set the expectation, via your system, that you can have a career discussion every six to 12 months.

What about reflection?

Is it so wrong to reflect on what’s happened over the past year? I don’t know about you, but I love the period between Christmas and New Year – it’s when I get a chance to step away from theday to day work and think about making big changes to my life and my family’s life. Is it so bad to take the same approach with work?

For many people, an annual review, supported by frequent conversations throughout the year, will be a welcome opportunity to take stock of their work and plan for the future. For other, high-growth, scale-up organisations this simply won’t work. All organisations are different and it’s absurd to take a single methodology and apply it to all.

And within organisations there will be many different types of work, different personalities, and different learning styles – it would almost be an insult to them to assume they’ll respond to the same system in the same way.

It sounds more efficient to make everyone in your company use the same forms, the same process, the same cycle. But who’s actually getting the efficiency gain? Probably HR. Not managers and employees who may struggle to fit into a prescriptive model.

Roly Walter and Appraisd development team
Roly with part of Appraisd development team

Moving towards personalisation

In this era when your experience of the web, whether it’s your Facebook news feed, the targeted adverts you see everywhere, or even the helpful suggested replies on your Android phone, the personalisation of content to you is becoming the expectation. So, I can see the personalisation of enterprise systems going the same way.

Adopting agile performance management

So, you may be wondering, if you’re thinking about changing your performance management process, how can you possibly get all this right the first time? You can’t. The best companies I’ve seen have an agile attitude that goes like this:

  • They state that this is a work in progress.
  • They implement something, anything. Build an MVP.
  • They make small incremental changes frequently. In software we call this ship early, ship often.
  • They really listen to managers and conduct retrospectives.
  • They think aloud: talking to employees through their thinking.
  • They repeat the above.
  • They understand that this is never finished, it will need to change as the requirements of the business evolve.

What you end up with is not just an agile performance management process, but the best possible one for your unique organisation, that can also evolve as your company and your environment evolves.

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