Compelling Performance Appraisal

People are reluctant to have a performance review driven by  esoteric methods or arbitrary data. On the contrary, if the methodology is accepted objective and reliable by  workers or colleagues, performance evaluation it is taken as a way to give them recognition for their achievements, which impacts positively on the commitment.

A very good tool for measuring individual performance is the use of Dashboards or Scorecard(1) made with quantitative performance indicators. (1) The term Scorecard belongs to Balanced Scorecard authors Norton & Kaplan.

I use Norton and Kaplan methodology to build HR dashboards with objective, relevant and measurable indicators.

Example of an Individual HR Scorecard

Ideally designed dashboards for managers with relevant indicators for business. I mean they are related to the success or business result. These indicators must be quantifiable and objective, i.e., that its measurement NOT depend on who is measuring, so that people are safe that its assessment is not subject to arbitrary or prejudiced by his (her) supervisor. In addition, the scorecard performance, specific indicators should consider both specif  and group measures. The latter, I recommend it because what is really important in a company are its key processes, i.e. sales, customer service, quality control, to name the most obvious. Therefore it is important that those involved in these processes share performance indicators, although in different magnitudes. In these processes concur a collective effort of the organization, for example the commercial department, collections, treasury, accounting, sales management, marketing, quality control, etc.

Keep it simple and concentrate on what matters

With this design, a medium sized company , 100 to 150 people , no need to create and manage a hundred indicators for performance management system . This approach has the added advantage of providing a system in which the company is measured with common goals which encourages coordination and communication between areas of the company. And involve  people in organization strategy. If you do not, your company is in serious problem.