Employee Lifecycle // Lesson 10

Performance
Contract
Performance Contract | Example

Each of the leaders confirm the roles, Customer Service Agent

Performance Contract
expectations, and measures of
individual team members. Not meeting Improvement Successful Exceeds Exceptional
expectations needed performance expectations performance
(1) (2) (3) (4) (5)

This step is when team or departmental goals Achieves an

Achieves an Achieves an Achieves an Achieves an
average
are set in alignment with the overall strategy. Drive a positive rating of
average average average average
rating of 6 on rating of 7 on rating of 8 on rating of 9+
In organizations, this process is often referred customer experience below 6 on
Voice of the Voice of the Voice of the on Voice of
Voice of the
to as cascading goals—the intent is to align all Client Client Client the Client
Client
activities.

For example, if the goal is to reach 100,000 Resolves less

Resolves
Resolves 75– Resolves 85– Resolves 95–
Resolve customer between 60–
new sales per quarter, the outbound sales queries at first point
than 60% of
74% of
85% of 95% of 100% of
queries at queries at queries at queries at
team might aim to contribute 50,000 new of contact queries at
first contact first contact first contact first contact
first contact
outbound sales per quarter.

For enabling functions, this gets a little more

difficult, but HR could, for example, state: Deliver exceptional
Meets SLA
Meets SLA Meets SLA Exceeds SLA Exceeds SLA
less than
“Ensure we have the right sales team with the service within our 60–84% of 85–100% of by 101– by more than
60% of the
service level agreements the time the time 120% 120%
time
right skills to deliver on targets.” In this step,
it is critical to contract against a shared and
understood scale.
Performance Contract | Template
(Duplicate this slide for every role on your team)

<Insert Role Name>

Performance Contract

Not meeting expectations Improvement needed Successful performance Exceeds expectations Exceptional performance
(1) (2) (3) (4) (5)

Role Goal 1

Role Goal 2

Role Goal 3