Despite your performance management system being well designed and executed you don’t seem to be getting significant growth in year over year performance. If this is you, you are not alone in this struggle. The issue and the solution might be closer than you think. This article is part two in a series that I will be working on over the upcoming weeks. If you have not read the previous article please do so here 6 Reasons Your Performance Management System if Failing You, and You Don’t Even Know it. In this series, I will be breaking down a few of the mistakes that many organizations make with regard to performance management and discuss some possible solutions.

Before we get too deep let’s discuss what I mean by performance management. Performance management or performance management system in the context of this article is the generic term for whatever performance management system you are currently using or developing; this could be a true PMS, a 9-block matrix, or a 360-degree feedback process. Many of the issues with one system will ring true with the other types of performance management systems. Now, let’s dive in.

Many organizations struggle to grasp why they are not seeing improvements in both performance and the personal development of their teams despite having a fantastic performance management system in place. The virus that is causing this stunted development in your teams is the lack of honesty in your feedback. The culprit that is feeding the virus of dishonest feedback is the fact that promotions, raises, terminations and other perks are tied to the PMS. You cannot improve anything until you know what the underlying causes are that hold your growth back, and you cannot do that without honest feedback or ratings on assessments.

Example:

I am the supervisor of Tommy. Tommy has a hot temper and often lashes out at his team when they are underperforming. Nothing that would get him terminated, but his lack of interpersonal skills and emotional control hold him back from being promoted. So, it’s annual raise/evaluation time. I like Tommy, he is a good guy and valuable member of my team. I want him to get a raise because I know he deserves it. I have 5 possible choices under the heading “treats others with respect”. Even though Tommy really is a 2 which is “needs improvement” I rate him a 4 which is “exceeds the minimum standard”.  Tommy gets the raise or promotion (and maybe even avoids termination depending on who he works for) but he does not get the training or development he needs to truly improve year over year performance or grow personally.

Do you see the damage dishonest feedback is doing to your organization? Don’t want to believe that it is happening in your organization? Stop lying to yourself, if your PMS is tied to raises, promotions, terminations or other perks; you are not getting honest feedback or ratings and it is stunting your organizational growth and killing you slowly from the inside.

At this point, if you are saying, “man this is exactly what we are doing” or “how do we undo the current mess?” Fret not, there are a few things you can do to minimize dishonest feedback and increase the potential for personal development.

1.       Know what you want from your performance management system

This is normally the heart of the matter. Most organizations don’t know what they really expect or want from the PMS. They only created one because everyone else was doing it or they knew they at least needed some manner of PMS to recruit top level talent. Somewhere along the line, someone got the bright idea to attach it to raises and promotions (probably to reduce the annual review process and make someone’s job easier). Knowing what your PMS is and what it is not, is crucial to it improving performance.

2.      Use another form of development like 360 that’s not tied to raises

If your HR or organizational culture is too entrenched in the current system or simply refuses to “untie” it from raises etc; then create another process for personal development. You cannot afford to not have a personal development program (it’s probably why you started your PMS to begin with). Create something like a 360-degree feedback program that is solely for personal development and improvement.

3.      Use an example such as the one above about the employee Tommy

If you cannot “untie” the tangibles from the current system nor get another process created then you must at the minimum change perspectives around the current system. Making others see that they are actually holding back those they care about versus doing them a favor can create buy-in into the PMS and improve honest feedback. Getting peers and supervisors to give honest feedback when other tangibles are at stake is nearly impossible. However, enlightenment around the true cost of dishonest feedback might help improve your situation slightly.

Honest feedback is at the core of any PMS system and having tangibles attached to it reduce the likelihood that you are receiving it. The impact is often misunderstood or in some organizations totally ignored (that doesn’t happen here mentality). Knowing what you expect from the system and not allowing any other agendas to creep in during the design phase is the first step in reducing dishonest feedback. If your system is already entrenched into your culture then attempt alternative programs to grow your people. Lastly, if all else fails educate your teams on the true cost of dishonest feedback.

Is your organization engaging in the above? Have some insights about the article or a story to share? We would love to hear from you. Comment below and join the conversation.