Performance appraisals are an important part of any individual’s professional development — at every stage of their career.
While it is easy to see the benefits to staff at the onset of their professional development, SMART goals (Specific, Measurable, Achievable, Realistic and Timely) are equally important for every member of the C-suite.
The leg work to set clear expectations not only leads to success, but to having the ability to make personnel changes down the road, should the need arise, as well.
Start at the beginning
For every individual, it is important for the supervisor to start with a clear and accurate job description. If there is a lack of alignment in what the job entails, there will be further differences of opinion as to whether the employee is meeting expectations tied to that job.
An up-to-date job description that accurately reflects the employee’s role and responsibilities informs what is required each day, as well as how that individual is connected to the larger organization.
Connecting the dots
Well-defined SMART goals should focus on individual career development, areas for improvement and business objectives. The business objectives should in some way be tied back to the company’s annual goals.
The manager should be able to explain to the person how their goal achievement has an impact on that higher corporate goal, even if it initially appears disconnected or indirectly connected.
Goals should be measured objectively, without opinion. If the goal is stated clearly, or has an outcome that is measurable, it will not be left to interpretation whether there was success or not.
An ongoing process
No one should ever receive a “below expectations” appraisal and be surprised. If there is surprise, the manager has not done their job well, as good leadership requires clear communication and ongoing feedback.
Ideally, whether formal or informal, you should attempt to discuss team members’ performance each quarter, reviewing the accuracy of the job description, the achievability of the goals, the alignment with corporate initiatives and outlining expectations.
In most cases, managers are talking with team members on a regular basis and, if they are managing well, feedback is a natural part of such ongoing interaction.
Not set in stone
Goals can be adjusted based on circumstances, particularly in a fast-paced, growing company or at a company which is less mature in its performance appraisal and overall goal-setting processes.
June may look very different than the prior January, and the goals set at the beginning of the year may no longer make sense. Don’t leave goals unadjusted if they are no longer achievable due to circumstantial changes.
Give honest feedback
Leadership takes courage. As a manager, you must have the courage to tell someone how he or she can really improve, even if it’s not what they want to hear or if it makes you uncomfortable to say it. Be honest and empathetic.
Avoid mean or emotional criticism; make it constructive and actionable, with clear expectations and timelines for improvement.
Use Your Words. Avoid numbers or single letters as ratings and use words. Numbers are almost always connected to school grades — A, B, C — and try as you may, there is no dispelling that perception. Outstanding Performance, Exceeds Expectations, Meets Expectations, Working toward Expectations (implying they are not there but are making progress) and Below Expectations are good ratings.
If they are ‘below,’ they should probably have already been put on a performance action plan that outlines consequences of not improving by an agreed upon date. In my view, the midpoint rating “meets expectations” is like getting a 100% when calculating bonus and “outstanding” would be a rarity for the exceptional employee providing amazing contributions.
I have always felt that I, and my organizations, have very high expectations, so meeting expectations is a worthy achievement. And the best and brightest know best – that everyone can benefit from career development and there are always areas to improve upon.
Meeting expectations does not mean perfect. Always try to help people understand where and how they can improve.
Organizational Consistency. There is a natural inconsistency as soon as more than one individual is conducting appraisals; no two people will review or grade exactly the same. It is very important that the management team – and managers at all levels of the organization – level set with each other.
Before handing final performance appraisals, managers should meet to ensure there is some parity in how the assessments were made. One manager’s “meets” could be another manager’s “exceeds.” Some people grade easier or harder than others, but organizational consistency is key.
At the end of the day, performance appraisals are an important tool to employees’ professional development. If you are invested in the employee, you should be invested in their plan to achieve success.
That plan includes goals on which you are aligned and that serve the larger organization, how achievement will be measured, and expectations as to timing and deliverables. The plan should be reviewed and revised throughout the year to remain relevant, and should there be shortcomings, those hard conversations should be addressed head-on.
Ronald Burr is the chairman and CEO at CallFire Inc.
