Mind Tools Newsletter 92 – January 22nd, 2008
This newsletter is published by Mind Tools Ltd of 2nd Floor, 145-157 St John Street, London, EC1V 4PY, UK. You havereceived it because you have subscribed to our double opt-in newsletter. To subscribe or unsubscribe, just click the links atthe bottom of this email.
Welcome to our January 22nd Newsletter!
There is nothing so rewarding as helping a member of your team and seeing the person truly flourish...Nor is there anything more frustrating than someonewho, despite your very best efforts, makes noimprovement in their performance – when theyreally, really need to do so.So what can you do when you are in this frustratingsituation? Before you get to the end of your tether,try using Performance Agreements.
In This Newsletter...
Our article featured here today helps you learn how to use Performance Agreement to bringout the best in people. Use this approach routinely to make it absolutely clear what you needand expect from the other person. And when all else has failed, this approach may be justwhat you – and your under-performing team member – need to get back on track.As well as today's article on Performance Agreements, another new article at MindTools.comsince the last newsletter looks atHeuristic Methods– also known as "rules of thumb". Thesemight not seem to be appropriate for the office, but there are places for them in the rightcontext! This article helps you know when and where to use them.If you want to get out of a rut, innovate or steer people in the right strategic direction, youmight also want to take a look at the new resources available to Mind Tools Career Excellence Club members. The latest articles are listedbelow, with more about joining theClub (remember – it costs just US$1 for the first month, with the right to cancel at any time.)Enjoy today's article – and enjoy getting more from your team!
James Manktelow Rachel Thompson
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Editors' Choice Article:
Performance Agreements
Increasing Personal Accountability
Contents:
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You sit down with Bill to discuss his performance… again. You talk at length about what youboth need to feel satisfied with the work he's doing. Perhaps you discuss some workplaceadjustments to help motivate him, perhaps you offer coaching in some aspect of his job. Andyou clearly outline your expectations for improvement in his performance.You both leave the meeting feeling positive, and Bill understands what he needs to do. Youhead back to your office, confident that, this time, you’ll get a good result.But a few weeks go by, and you haven't seen any improvement in Bill's performance. He justcan't seem to follow through and make the improvements you discussed. Before you throw inthe towel or take a disciplinary route, what more can you do?LOTS!Conducting a performance interview and providing feedback are only the start – the "frontend" tasks of performance management. However, the middle and back ends of this processare just as critical.It's not enough to simply tell Bill what you expect him to do, and then place the soleresponsibility for follow-through on his shoulders. Performance management takes more of ateam approach – the person who's doing the work needs to feel supported and encouragedfor the duration of the process, just as he or she needs to feel personally held to account for the outcome.
Expanding the Performance Review Process
One of the most effective ways of doing this is with a performance agreement. Thisagreement defines accountability for specific personal and organizational goals. It defines theindividual's expectations. It establishes and agrees results-oriented goals that are aligned withthe overall objective you want to achieve. And it concludes with the individual's formal, signedcommitment to the agreement.When establishing performance expectations, the overall objective is to come to anagreement that supports your organization's strategy. For individual performance goals, theobjective is real, measurable improvement so that the person is in a position to help move theorganization forward.Performance agreements must clearly state agreed-upon objectives and how these will bemeasured. Document these things to help you avoid future disagreements about exactly whatyou expected the person to accomplish.Without an agreement founded on the organization's objectives, you may have to rely ondefending your directives with "Because I'm the boss." This will probably do nothing to buildtrust and respect with the person whose performance you're trying to improve. However, withformal agreements in place, managing and leading your staff can become more objective,and simpler.These are some of the many benefits you can achieve by using performance agreements:
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Aligns personal and organizational goals.
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Improves trust and understanding.
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Encourages communication and feedback.
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Assists career planning and development.
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Ensures that what you agree upon is relevant and achievable.
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Provides an objective and fair way to evaluate performance.
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Holds staff members accountable for their performance.
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Makes performance a shared responsibility between you and your staff.
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Establishes a process to follow up on performance and development plans.
Performance agreements support amanagement by objectivesapproach. This is wheremanagers help staff understand how their roles fit into the larger picture of organizationalsuccess. From there, each staff member develops specific performance goals and targets thatare aligned with the company's strategic goals.Performance agreements not only ensure that performance is measured, they also set up agreat communication system to regularly discuss individual performance. These agreementsare essentially a way of making sure that everyone is aware of what they need to work on,and why.
Putting Together an Agreement
An effective performance agreement:
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Reflects business needs.
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Is achievable and relevant.
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Outlines authority and accountability.
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Can be evaluated or measured.
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Is fair.
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Holds people to account.Follow these steps to put an effective performance agreement in place for your staff:
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Start with expectations
Clearly identify the behavior that you want to see, explain why that behavior isneeded, and identify the goals that need to be achieved.Mind Tools has two articles to help you with performance improvement expectationsand goals.Giving and Receiving FeedbackandDealing with Poor Performance
provide many practical tips on conducting performance interviews.
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Build in milestones
Identify specific points along the way to ensure that the goal is still relevant and thatthe person is still on track. The main reason for executing a performance agreementis to maximize success. Do what you can to make success as achievable as possible.In our above example, someone needing to improve communication skills may needto start by attending an interpersonal communication workshop, and this may have amilestone of completing it by a certain date. After attending the workshop, the personcan move on to one-on-one coaching.If the person doesn't attend the workshop, then the milestone provides an opportunityto ask why. Was there a scheduling problem, or is there a deeper issue to address?Either way, the person can't move on to one-on-one coaching, so the second goalneeds to be adjusted.With a routine performance goal, you need milestones to ensure that things areprogressing smoothly. You don't want a surprise when it's time to evaluate a person'soverall performance, so build in checkpoints to stay on top of performance before itgets too far off track.
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Agree on the terms
Performance agreements are a two-way street. If you simply dictate what the person
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