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Performance Management: Processes AND People - “Close but no cigar”

Even when adopting the performance management system of objective setting, measurement and review described above, there are a number of examples where a mismatch between those organisations professing to be “a people company” and those that are obsessed with processes adherence often results in an obvious under-performance. Hence, the link back to the title of this article. Against such a dichotomy, the US-originated fairground phrase ‘close but no cigar’ can be aptly applied. Examples of the ‘no cigar’ expression abound within organisations and are witnessed in almost every aspect of business management. Typical examples include:

• Incorrect staff recruitment or promotion based on past technical abilities rather than those for the vacancy and thus often selecting staff with limited managerial qualities and a failure to inspire others.
• Poor communications from introverted directors who avoid contact with their staff and thus suffer from reduced respect and limited trust.
• Employing company opinion surveys, which merely exist to satisfy a ‘tick-box’ process-driven organisation and a false belief that conducting these alone equates to a performance management system and provides an accurate understanding of staff issues.
• The mismatch between ‘talking the talk’ and ‘walking it’ can be seen in a number of examples resulting in a lack of trust. 
• Business administration offers many examples of the mismatch between process and the lack of integration with the ‘people issues’, in turn undermining the philosophy of performance management where such mismatch is openly practised.

To counter the above, it is stressed that there must be common acceptance across organisations irrespective of their size, market position or ownership status, that the topic of performance management requires professionally-trained managers with an ability to think in business performance terms, to make strategic decisions and look to the wider implications of management decisions than just as a mere custodian of the company’s processes. Indeed, key to the successful introduction and application of performance management is having:

• A clear understanding of the process and what it is meant to contribute to the business.
• An understanding of the current organisation and how it should function in a high- performance culture
• A recognition that individuals will need to be focused and assigned mutually agreed SMART objectives for them to buy-in to the process and play their part. 
• An understanding that, although the performance management system may be documented and capable of being deployed widely across an organisation, the other aspects of business cannot be ignored or treated in isolation when viewed against the objective of increasing organisational performance and if the “close but no cigar” criticism is to be avoided. 
• Whilst performance management is about developing and implementing appropriate business processes, it also needs the support of its ‘people’ who are widely proclaimed as a company’s key asset. Again, referring to the title of this article: for those tasked with introducing or using a performance management system, the stress should be on the capitalised word ‘AND’ in the title, showing the importance of both elements.

On a final point, it is noted that performance management can be difficult to implement and it could be a challenge to get it to work to its full potential. Conversely, if a half-hearted approach is used to measure performance without addressing the other issues of the business, a lack of commitment will manifest itself in poor performance results, increased staff turnover and low levels of motivation. Addressing the ‘close but no cigar’ issues and actually “walking the talk” must be considered to be vital to improve and maintain increased business performance.  These will often need little extra cost to support the formal performance management systems which may be in place.

References

• Burtonshaw-Gunn, S. A. (2008). The Essential Management Toolbox: models, tools and notes for Consultants and Managers. Published by John Wiley and Sons, UK.  (ISBN 978-0470518373)
  
• Burtonshaw-Gunn, S. A. & Salameh, M.G  (2009). Essential Tools for Organizational Performance: tools, models, and approaches for Consultants and Managers.  Published by John Wiley and Sons, UK. (ISBN 978-0470746653)
  
• Burtonshaw-Gunn, S. A. (2010). Essential Tools for Operations Management: tools, models and approaches for Consultants and Managers. To be published by John Wiley and Sons, UK in January 2010. (ISBN 978-0470745922)

Professor Simon Burtonshaw-Gunn holds two Master’s degrees and a PhD in management. He also holds Fellowships of four UK professional institutions, including the Chartered Management Institute and the Institute of Business Consulting. He is a Principal Management Consultant for the international specialist risk management consultancy company and a Visiting Professor at the Salford Business School at the University of Salford in Greater Manchester. Following the success of, “The Essential Management Toolbox” he has written three sibling, “Essential Tools” titles, published by John Wiley and Sons. Contact details Email: profsimonbg@hotmail.com

The Essential Management Toolbox: Tools, Models and Notes for Managers and Consultants Simon Burtonshaw-Gunn ISBN: 978-0-470-51837-3 Hardcover 378 pages R600.00 A must have for all practicing and aspiring consultants and strategists, this book covers a wide range of consultancy tools and techniques that are well displayed, well described and well referenced. The tools and techniques are helpfully divided in to twenty recognisable skills sectors within management consultancy fields and specialisms. The depiction of the content with diagrams aids the process of quick reference and ease of understanding. The tools and techniques can be utilised across the whole range of organisational sectors, both private and public. The purpose is not to short cut formal learning, but to provide easy access to a ‘toolbox’ of tried and tested management approaches through a collection of models, tools and occasional brief notes which consultants, managers and scholars can use in a practical way.

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