I said, “When you were at B***** you did performance reviews, right?”
She rolled her eyes and said, “Yes.”
I asked, “What did you think of them?”
She replied, “They Sucked!”
You need to understand that Mary is one of those people who wouldn’t say sh** if she had a mouthful, so I knew I had the title for my book, “Performance Reviews Suck.”
I speak to a lot of groups and I often ask how many of the people in the room have been on the giving or receiving end of a performance review. Most of the people in the room raise their hand. Then I ask, “How many of you like performance reviews, think they are motivating, and lead to the results that the organization wants?” Once in a while, a hand or two will go up, but most often, no one raises their hand.
During a recent conversation with Mary, I presented a question that challenges the traditional approach to performance evaluations. I asked, “Given the choice between a Performance Review and a Personal Development Interview, which would you prefer?” Without hesitation, Mary’s response was clear, “A Personal Development Interview.”
When I first devised my management system, I aimed to take decisive control of both my business and personal life. However, I soon recognized a critical component was missing. Initially, the system effectively set clear expectations but continued to rely on the traditional model of performance reviews.
It wasn’t until 2005, when I met Vince Zirpoli, that I discovered the missing link in my system. With Vince’s insights, I was able to refine my approach to create a Performance Management System that genuinely works.
The cornerstone of this evolved system is a shift from focusing on mistakes to recognizing and rewarding correct actions. Traditional business management often operates on a principle known as management by exception, primarily watching for errors and missteps, which stifles creativity and innovation. This method can be incredibly demoralizing, as it discourages risk-taking and initiative.
In contrast, our system encourages catching people doing things right. This philosophy not only boosts morale but also fosters a culture of empowerment and continuous improvement. By acknowledging and celebrating successes, we encourage our team members to take initiative, which in turn drives productivity and growth across the organization.
Our revised approach to performance management has transformed our work environment. By fostering a supportive atmosphere, we not only see enhanced productivity but also improved creativity and cooperation among our team. This is the essence of effective management—creating a motivating environment that permeates the entire organization, encouraging everyone not just to participate but to thrive.