Performance Management & Millennial Expectations

2 forces have disrupted what is traditionally called “performance management” — changing it to something more accurately described as “performance development.”

Organizations have discovered that their current performance management systems aren’t yielding the ROI they assumed. Just one in five employees strongly agree that their company's system motivates them. Large organizations spend tens of thousands of hours and tens of millions of dollars on activities that not only don't work, but also drive out top talent.

Something different is needed

The future of work is being shaped by extraordinary changes in technology, globalization and overwhelming information flow. Workers, particularly millennial ones are asking for something
different. “They want a coach, not a boss. They want clear expectations, accountability, a rich purpose, and they especially want ongoing feedback and coaching.”

The need to dramatically change the way employees are managed couldn’t be more urgent. Bluntly, what we’ve known as performance management has failed. Gallup estimates the cost of poor management and lost productivity from employees in the U.S. who are not engaged or actively disengaged to be between $960 billion and $1.2 trillion per year.

Gallup Research

To help organizations everywhere tackle the problem of poor management, Gallup set out to learn everything they could about the current state of performance management. They reviewed and evaluated their own databases of more than 60 million employees, as well as large-scale meta-analyses from researchers outside of Gallup containing hundreds of studies on goal setting, feedback, engagement, individual differences and competencies. They interviewed top scientists, leaders, managers and employees. They wanted to learn what the best science had to say, as well as which insights were the most useful and actionable from leadership to the front line.

Performance Development through Effective Coaching is a key factor

On the positive side, the research reveals there are better, newer ways to improve management and productivity dramatically, and it reveals how to turn traditional performance management into performance development. Yet, Gallup also found organizations overlooked, or bypassed, established scientific findings — that have been swept away by fads.

Specifically, traditional performance management systems have struggled to inspire and develop employees because their approach leads to:

  • unclear and misaligned expectations
  • ineffective and infrequent feedback
  • unfair evaluation practices and misplaced accountability

Instead, organizations can transform their managers into coaches by teaching them to effectively and cohesively:

  • establish expectations
  • continually coach
  • create accountability

In my words to FLIP!