Dumping the annual performance review
Last week at the IFTDO 2015 Conference in Malaysia, Peter Cheese from the CIPD delivered a great session on the future of HR. One of the key themes discussed was the fundamental changes being made to performance management.
As highlighted in the Australian Financial Review last month, Deloitte Australia has scrapped their bi-annual performance reviews this year in favour of regular “check ins” every week or fortnight. They have revised their out dated ranking system to manage future performance rather than assess it in the past. The new approach is designed to focus on coaching and developing employees.
Likewise DDI released an infographic this week that summarises how performance management should not be saved for twice yearly conversations, but that there should be ongoing conversations to support development every day!
This approach is a big change for Deloitte and other consulting firms who have always had the annual performance review as a staple part to the way they work. The aim will be to have a real impact on leadership, financial performance and customer retention, and improve overall performance management.
Peter Cheese told us that GE, Microsoft and Accenture are all following suit.
So, what does this mean for learning?
It’s too early to tell how this will directly impact learning, but it can only be a good thing if people are getting regular feedback and having more open and frank “coaching” style conversations about their development and growth.
Peter was keen to highlight the difference between a performance conversation and a development conversation, stressing that development is about future growth, and performance is about performance on the job and growth and change within the role. I thought it was interesting to note those distinctions.
I respect businesses that are willing to make these changes to increase the level of conversations they are having with their employees – it’s something to be applauded.
