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January 25 2007 - A survey conducted by the Institute for Corporate Productivity (i4cp, formerly the Human Resource Institute) in conjunction with HR.com suggests that it is futile for an organization to seek the 'one silver bullet' that will revitalize its performance management (PM) system.

Mark Vickers, senior analyst with i4cp said:

"That bullet doesn't exist. That is, there is no single PM practice that can transform an ineffective system into a good one. Performance management systems are just that - systems. They require the coordination of multiple key practices. The more of these practices that are in place, the more likely a performance management system is to be seen as effective."

Based on data from 1031 respondents, The 2006 Performance Management Survey indicates that there is significant scope for improvement in the performance management systems of many companies. Only 8 per cent said that their PM process contributes to individual performance in a significant way, 45 per cent said that it does contribute but requires improving, while 47 per cent were not sure if their PM process makes any contribution. While most companies are facing serious challenges with regard to their PM systems, many seem aware of which aspects are under-performing.

Correlating performance management processes and the overall perceived effectiveness of their systems produced a list of nine key practices. The survey concludes that PM systems are more likely to be seen as effective when they include the following:

1. Plans for helping employees develop in the work period after the appraisal
2. Ongoing goal review and feedback from managers
3. Training for managers on how to conduct a performance appraisal meeting
4. Metrics of the quality of performance appraisals
5. Ways of addressing and resolving poor performance
6. Appraisal information that isn't limited to the judgment of supervisors
7. A PM system that is consistent across the whole organization
8. Some form of multi-rater feedback
9. Employees can expect feedback on their performance more often than once a year.

Kevin Oakes, i4cp's CEO, commented:

"Performance management tends to be a work in progress. PM technology is increasing in popularity, but without a solid process already in place it's not going to make a significant difference. The good news is that the data shows that many companies today are getting more serious about implementing tighter performance management processes."

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