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A guide to performance management
A guide to
g
Performance
Management
www.evalu8d.com info@evalu8d.com +44(0)1325483961
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This guide contains essential information on how to get the most from your team’s performance. It will compliment your
company performance management process, ensuring your team are fit to perform.
It contains the core elements of a typical process, planner, checklist, and jargon buster.
Core elements to performance management
There are essentially three elements to a performance management process.
Objectives
Personal
Development Plan
Competencies
Performance against business plan
This guide looks
Thi id l k into each of the core elements in more detail. To begin with let us look at the objectives.
i t h f th l t i d t il T b i ith l t l k t th bj ti
Where do we get objectives from?
We see a typical cascade process in operation as in the diagram below. The process typically runs in conjunction with the
financial year (April‐March) or with the organisation’s tax year.
Business Strategic Function Individual

Plan Objectives Objectives Objectives
Contains the Specific Annual objectives Individual
vision, objectives for a for the specific objectives for the
aspirations and range of around function or forthcoming year
focus for up to 1‐3 years department
next 5‐10
next 5 10 years
years
2
©evalu8d not to be reproduced without permission – distribution within your organisation is permitted.
Agreeing objectives
Some objectives will directly cascade down from the business plan, strategic and functional objectives to the individual. A
lot of the time these are simply updated from the previous year, (where there is similar emphasis from the business). E.g a
sales target may increase year to year
sales target may increase year to year.
Lets look at an example.
In this example we have included
To sell more Type ‘D’ products in order to
the following language ‐
increase cross sales target, from 10 per
week, to 15 per week, by end of June and
on going. Reviewed monthly and at In order to……
formal reviews
formal reviews. by MM/YYYY
from XX% to YY%
5 Specific
5 Measurable
5 Achievable
We should check that the objective ticks off the SMART principles too.
5 Realistic
5 Time bound
Measuring performance
gp
Objectives should be measurable. Through the performance management process we should be looking for ways to
contribute to the bottom line of the business. It is key for managers and staff to seek ways to increase the profitability of
the organisation. Consider the following equation.
Profit It’s best to be in
My My salary the black here!
contribution (and costs) or Are you?
Loss?
Here are just 16 ways in which we can contribute to the business.
R d d
Reduced Hi h
Higher
Reduced Higher
production customer
complaints efficiency
costs numbers
Increased
Reduction of Reduced travel
Increased sales customer
accidents costs
satisfaction
Improved cost Improved Wastage and

Lower absence
to sales quality leakage
Reduced cost Reduced Environment

No. of leads
to service overheads costs
Even without a formal performance management process we must be adding value. If it was your business could you
afford to employ someone who wasn’t?
Personal development plan
Often derided, the personal development plan (PDP) is an integral and valuable part of the performance management
process. In some industries it is a requirement to have and evidenced and Continuous Development Plan (CDP or CPD).
If our team are not skilled and competent then how can we expect them to contribute to the business objectives? In sport
there is no way a team will be able to (consistently) perform at their best if they have not trained, developed or practiced.
(Of course it does help having the best players on your team from the start!)
Below is an example of the topics on a PDP.
Name
Development Area Actions to take How will it be Date to be

(and by whom) measured ? reviewed
We can over complicate the PDP. It is quite a logistically simple document really, especially when you consider the two
main questions behind it.
What is the gap in What specific
the individual’s activities will help
performance? close the gap?
From here we simply populate the plan with specific development activities. It is vital that these come from the individual
rather than the manager, the manager should coach/mentor, rather than tell. Consideration to learning styles of the
individual is very important too, as we all learn differently. Timescales and objectives help to ensure a focussed plan.
Development plan options
Examples of development options available are found below. This is list is never going to be exhaustive, it highlights
examples of ways to close the gap. Individual specific needs have to be considered, as do learning style preferences.
Develop-
p
Training DVD/
Mentoring Seminars ment
course Audio
centre
Skills Observing Business Skills

Coaching CBT*
practice experts simulation workshop
Competencies
Competencies are found in two main categories.
Technical competencies
p Behavioural competencies
p
In simple terms:‐
Technical competencies are the WHAT
Behavioural competencies are the HOW
Technical competenccies
Non performance can be due to the team
p
member not knowing what to do, or because
they are not doing it in a way that is acceptable.
What –
For example we need to do
A customer services representative could handle
30 customer queries (WHAT), as targeted, yet
they may not deliver it with compassion,
y y p
integrity and quality expected (HOW). Behavioural competencies
How ‐ we need to do it
Behavioural competencies
We often see behavioural competencies with varying levels depending on the focus required. In the example below we
see a simplified competency of ‘Customer
see a simplified competency of Customer Focus
Focus’ at 5 levels.
at 5 levels.
Customer Focus Competency name
A behaviour which puts the customer at the entre of what we do. This is the desire and
Competency definition
ability to delivery higher than expected service to our customers.
Level 1 – Meet expectations
• Delivers service as planned
Competency level and tag line
• Handles customers queries
Handles customers queries
• Is pleasant and polite
Behavioural indicators
Level 2 – Exceed expectations
• Receives feedback (written and verbal) praising service delivered
• Seeks ways to exceed level of service delivered The bullet points are known
• Handles 1st level customer complaints as behavioural indicators
Level 3 ‐ Focuses the team on customers
• Coaches others to deliver customer service Differing levels of
• Sets objectives on customer service
j competency, increasing in
• Gives feedback to others on service delivered focus. From day to day
• Handles 2nd level customers complaints
focus, to longer term
Level 4 – Sets customer focus goals strategic focus.
• Sets goals to deliver customer service excellence.
• Develops plans to increase customer satisfaction
• Creates innovative ways to motivate others to deliver customer excellence
These levels increase due to
• Handles 3rd level customer complaints
team management factors,
Level 5 – Creating a vision for customers specialism in role and task.
• Sets a vision for the delivery of industry leading customer focus
• Externally champions our passion for customers to a wider network
Performance manager planner
The key activities of a typical performance management process are mapped out below. This is a ‘full fat’ version, and the
process can be condensed.
Step One – Initial Review Start here

Agree Objectives
Agree Development Plan
(incl. behaviours and competencies)
Daily/Weekly adhoc, informal reviews and coaching
Step Two – Quarterly Interim Review
Review and update Objectives and Development Plan
p j p
Step Three – Half Yearly Review
Objectives and Development Plan reviewed and documented
Step Four – Quarterly Interim Review
Review and update Objectives and Development Plan
Step Five – Final Review
Agree performance against Objectives
Agree performance against Development Plan Now go to
Step One
(incl. behaviours and competencies)
Complete documentation
Complete documentation
Performance manager checklist
Use this checklist to find out why an individual is not performing. It is also useful to plan for those ‘high performers’ who
plan to move into new roles. Seven areas can be checked to diagnose how to improve future performance.
Out of 10
Out of 10
how would
you rate this? È
Do they have clear direction?
Clear Direction Have they clarity over how their role and task fit into the
business plan?
Do they have clear objectives?
Clear Objectives Do they understand what their objectives? And how to achieve
them.
Do they have the correct technical competence?
Technical
Competence Have they the technical skills appropriate to complete their
task?
Do they have the correct behavioural competence?
Behavioural
Competence Do they carry out things in to correct manner?
Are they committed to the task?
C
Commitment
it t Do they have the desire and commitment for the role or
specific tasks within it?
Are they being managed effectively?
Management
style Is you management style correct? Are you over or under
leading? Are you inspiring?
Are the right systems in place?
Systems Is performance being hampered by the wrong process,
procedures and systems?
Jargon buster
Some phrases you may hear

Some phrases you may hear.
KPI Key performance indicator ‐ measures of key performance areas or objectives
KPA Key performance area ‐ area of key focus for the coming year
ROI Return on investment ‐ the return for any money spent by the business
Behavioural indicator A bullet point, indicating specific evidence/examples of a behaviour
Tag/Strap line A summary of the level of a competency
SMART An acronym ‐ Specific, Measurable, Achievable, Realistic, Time bound
PDP Personal development plan or Development plan
CPD Continuous (personal) development plan
Continuous (personal) development plan
*CBT Computer based training
Competency Maps out technical competence or behavioural competence
Bottom line Signifies the bottom line of key financial statements i.e. making a profit or loss
Summary
This guide has been designed to give you some important pointers on how to effectively manage your teams performance.
Ultimately we must be adding to the bottom line of the business in order to aid the long term security
Ultimately we must be adding to the bottom line of the business in order to aid the long term security.
Use the space below to capture 5 things you will action over the next month with regards to managing performance in your
organisation.
My 5 actions are:
5
About the author of this guide
Phil LaViolette is Managing Director and founder of evalu8d. He has worked extensively in the field of
coaching and learning & development with many blue chip and FTSE organisations. Including Barclays,
British Nuclear Group, HBOS, Norwich Union, NFU Mutual, Orange, RBSG, Royal Sun Alliance Safeway,
Vodafone.
His passion is creating solutions that contribute to your bottom line, and has a track record of improving
performance as a result of coaching and training interventions.
To arrange a free consultation, or to discuss your organisations needs, then please contact us.
Feel free to distribute this within your network.

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A guide to performance management

Business Strategic Function Individual

Improved cost Improved Wastage and

Reduced cost Reduced Environment

Development Area Actions to take How will it be Date to be

Skills Observing Business Skills

Step One – Initial Review Start here

Some phrases you may hear

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