Today we are going to talk about performance management. This is a critical part of a leader’s role. While we need to address performance issues promptly, the overriding goal should be getting people back on track, not managing them out.

Sure, we can’t afford to carry passengers. But the cost of a “hiring and firing” mentality is huge. Did you know that industry experts say that the cost of hiring and training employees to a very good level is about twice their annual salary? This is significantly more if we are talking about people in management roles. If you have leaders reporting to you, watch their turnover rates closely and put development plans in place to address any issues.

A leader needs to have a helicopter view of what is happening in the business, but also needs to keep a finger on the detail. It is an art form in itself to be close enough to have a deep understanding of your team and the issues they face on a daily basis without micromanaging.

If you have all the other steps in place, personal development plans for all staff, reward and recognition systems and an innovative culture, your team will respect your authenticity and realize that your observation is not micromanaging or checking up on them.

Evaluation

Daily: Walk around and observe on-the-job interaction, and make an analysis of what you see. Remember the One Minute Manager and “catch someone doing something right and tell him or her about it.” Drill down on daily numbers to ensure that you understand any deviations or do exploratory work to find out reasons. A leader needs to keep his or her finger on the pulse daily.

Weekly: Analyze weekly performance in team meetings, drilling down to ensure you obtain the factual evidence of exactly where everyone is according to plan. The leader who is directly managing salespeople will check the pipeline to ensure that each segment is meeting benchmarks. It will become clear which area you need to work on with the salesperson who is not achieving expectations.

Pipeline management will highlight if the issue is a lack of opportunities (marketing, networking, or obtaining referrals) telephone skills in obtaining the interview, the interview, customer service skills in obtaining the customer’s agreement, or follow-up skills to complete the business.

Monthly:
Formal one-on-ones that cover:
·Performance against KPI’s (key performance indicators)
·Customer call-back feedback
·Joint fieldwork summary
·Assessment of improvement in the attribute/skill worked on that month
·Selection of attribute/skill to work together on next month
·Upcoming personal events in their life
·What can I do to assist you?
·Action plans to address continued achievement of KPI’s or to address any areas of concern

Quarterly: Accountability workshop where performance against plan is closely scrutinized and specific actions put in place to correct any deficiencies or to reverse trends. At this workshop each leader should give a detailed overview of team members and team results against the plan to date. Also discuss developmental plans with a summary of the lift in ratings of the attributes/skills across the team.

Performance Deviation

The following model will enable you to analyze performance concerns and put you in a position to address them. Utilize this model when there is a performance deviation to determine if it is skill-based or attitude-based. If it is skill-based, provide upskilling through training, or if Read the rest of this entry »