How to discuss performance with employees? What kind of performance settings are really useful?

1. What to look for in personal performance

Some companies (especially some state-owned enterprises) mainly look at five aspects of "morality, ability, diligence, performance and integrity" when assessing individuals, among which " "Performance" refers to performance and performance.

There are also some companies (especially foreign-funded companies and private companies) that usually assess individuals in three aspects: performance, ability, and attitude (values).

From the perspective of assessment indicator types, individual assessment indicators are mainly divided into three categories: quantitative indicators, task-based indicators, and behavioral indicators.

Among them, behavioral indicators can also be called quality indicators, which are closely related to the job quality model and are suitable for the evaluation of abilities and attitudes (values).

Generally speaking, the assessment results of behavioral indicators provide reference for talent selection, appointment, development and training, but do not provide reference for performance appraisal. In other words, what are really used for performance evaluation are quantitative indicators and task-based indicators.

PPC is only a "contract" for "personal performance", so it only "carries" two types of indicators: quantitative indicators (KPI) and task-based indicators -

The former What is shown is the key performance indicator, which is related to the job responsibilities and requirements;

The latter shows the individual's main action plan, which is related to the team's tough battle.

If it can be achieved, it can support the achievement of performance indicators.

KPI is often a result-based measurement standard, while task-based indicators tend to focus on process-based measurement methods. In comparison, the application of the former is simpler.

Therefore, from the perspective of convenience, people generally tend to choose KPIs that are easy to measure as assessment items, rather than going to the trouble of formulating action plans or examining personal efforts.

For example, some companies put it very bluntly:

“We only assess KPIs, only look at results, not effort.”

“Only look at merit. , regardless of hard work”

“Without results, all hard work is in vain.”

Please note that this is a huge misunderstanding!

The core problem in doing so is that it ignores the relationship between "cause" and "effect", ignores the impact of process actions on the achievement of results, ignores the impact of personal effort on the final result, and ignores KPIs. limitations.

KPIs are mainly financial indicators, and these indicators often reflect past conditions. Although from the perspective of financial investment and pursuit of shareholder value, they are "justifiable" as assessment items for enterprises. However, from a personal perspective, using them for assessment is often incomplete and unobjective, and is not conducive to motivating individuals to make efforts.

The above facts are why some emerging companies do not pursue KPIs, but pursue goals and key results (OKRs).

In the concept of strategic decoding, the guiding ideology for performance appraisal content is:

Focus on KPIs, but not just on KPIs, there must be action measures to support it! KPIs without action are "blank checks", while KPIs supported by practical measures are "hard currency"! A strategy without action measures can only be regarded as an ideal. Only a strategy rich in action measures can be worthy of the word "plan".

Similarly, a goal without action measures to support it is an incomplete goal. This is why strategic clarification and strategic decoding attach so much importance to the implementation path and action measures of the strategy.

If there is any difference between strategic decoding and other performance management methods, then the great emphasis on action measures is the most important difference!

The emphasis on action initiatives is also reflected in PPC. In order to avoid the limitations caused by simply using KPIs, in PPC, the two types of indicators, KPIs and actions, must be classified and described, and the two cannot replace each other.

2. Six-step method for forming a personal performance contract

Whether it is the personal performance commitment of senior executives or the PPC of department heads and middle-level managers, the formation process is basically Consistently, the six steps shown in the figure can be followed.

The first step is to clarify the source of requirements collection.

The input of PPC comes from four aspects: the expectations of superiors, the company's tough battles, the hopes of customers, and personal responsibilities.

For senior executives, the most important input sources for their PPC are corporate strategic priorities (hard battles) and action plans;

For middle-level managers, the most important input sources for their PPC The source of the input content is the superior's PPC, corporate strategic focus (hard battle) and action plan related to the department, as well as the key responsibilities of one's own position and the key demands of internal and external customers;

For ordinary employees, In other words, the main source of input content for its PPC is the PPC of its superiors and the key responsibilities of its own position.

The second step is to carry out preliminary PPC communication.

Under normal circumstances, companies can use the opportunity of high-level or middle-level strategic decoding meetings to hold performance policy and personal performance contract PK meetings together.

At the meeting, the person in charge of corporate performance management will explain the annual performance management policy, PPC setting rules, and annual performance management promotion plan to the participants and give appropriate examples. This will facilitate listening to everyone’s feedback and make it easier to Everyone knows how to formulate PPC.

The third step is for the offeree to draw up the PPC by himself.

Based on the areas of responsibility or division of responsibilities, relevant personnel will draw up the PPC by themselves based on the input content.

Under normal circumstances, after the high-level or middle-level strategic decoding meeting is completed, the company can arrange for individuals to draft PPC by themselves during the break between meetings.

For example, if the strategic decoding meeting lasts for two or three days, it can be arranged on the first or second night; if the strategic decoding meeting and the personal performance contract PK meeting are held every other week, they can be arranged on both days. appropriate time between meetings.

The fourth step is for the promisee to communicate with the superior.

Before convening the personal performance contract PK meeting, the offeree needs to have a simple communication with the offeror (i.e. superior), listen to the superior’s feedback on the self-made PPC draft, and discuss KPIs, work priorities, Discuss specific actions and other content to ensure that both parties have a clear understanding of this.

The fifth step is to hold a PPC review seminar (i.e. personal performance contract PK meeting).

The participants were consistent with the strategy decoding meeting, and the focus of the meeting was the mutual challenge (PK) of PPC.

Whether the assessment content is complete, whether the work focus is highlighted, whether the weight is appropriate, whether the indicators are clearly defined, whether mutual collaboration is included, whether the target value is challenging, etc., all need to be PKed at the meeting - "Please everyone Find faults.”

This step is the most important step in forming PPC. The purpose is to ensure that PPC is focused, clear indicators, reasonable weighting, challenging, fair and consistent.

The sixth step is to hold an on-site signing ceremony.

At the cadre meeting at the beginning of the year, after strategic publicity and implementation and tough battle arrangements are completed, the PPC signing ceremony for corporate executives can be held.

The middle-level PPC signing ceremony can be arranged to be held at the year-end work meeting of the department (branch/subsidiary) (it can also be held specifically).

There are three advantages to doing this:

First, the ceremony has a formal and logical inheritance of corporate strategy, forming a closed-loop system from strategic planning to strategic execution;

Second, at the beginning of the meeting, employees look forward to the introduction of tough battles. At the end of the meeting, employees look forward to the "passion" brought by signing the contract. This can give employees the motivation to "roll up their sleeves and work hard" and help boost morale. ;

The third is to save meeting costs. One meeting has two contents, which is simple and efficient.