Performance

Performance (re)defined

In simple terms, Merriam Webster’s dictionary defines performance as 1) the execution of an action or 2) something accomplished.  

While charge hours may be monitored, they should not be the only measure you use.  In order to insure performance, many firms have implemented performance evaluation systems; however, the biggest complaint from partners is that these require too much paperwork and too much high level time to administer.  The bottom line: Most partners prefer serving clients rather than managing people. 

Simplify the process

Many firms tend to make the performance management system too complex by attempting to measure everything rather than focusing on priorities. The following characteristics define a successful performance evaluation system:

1. Simple and easy to understand.
2. Quarterly interaction between the manager and the employee.
3. Focus on the future rather than the past.
4. The employee must be responsible for administering the system.

There is a good chance your immediate reaction is that this type of system goes against conventional wisdom and what many firms have done in the past.  Too often performance evaluations are tied with annual salary increases and conducted annually where employees are rated by multiple managers and partners.  The comments are not specific or relative to improvement and personal growth. 

The big picture

Frequently the other missing link is how the employee’s performance plan integrates with the firm’s strategic plan.  If a firm doesn’t have a strategic plan or if the plan is not communicated and well understood outside the partner group, you have an immediate problem that must be addressed if you hope to attract and retain quality people.

Let’s evaluate and discuss each of the four criteria of good performance evaluation systems.  

Simplicity is good

Great managers do not like bureaucratic forms and irrelevant terms.  Typically they are more concerned with how to say what needs to be said to the employee.  Many older systems focus on compliance rather than coaching and development.

Annual meetings miss the details.  Quarterly meeting are manageable in most firms if you have a system, and people know and trust that system.  Frequent interaction is positive and reduces risk of misunderstanding or misinterpreting expectations.  

We recommend employees complete an Accountability Review form with a focus on progress over the past 90 days.  This provides them with the confidence to take on bigger goals in the future and demonstrates whether they are meeting their own and the firm’s expectations.  Advice can be practical rather than spoken in generalities.  The form that we use is one page long and focuses on successes over the past 90 days, further progress required and specific steps to be taken in the future.  This directs the employee’s attention toward the future rather than the past.  Frankly, you can not do anything about the past other than conduct a self assessment of what worked and what did not work.

Focus on the future

Good managers use the accountability review to evaluate employees’ mode of operation and requirements.  A good manager insures their people have the resources (i.e. training and equipment) to succeed. People are motivated differently.  

While conventional wisdom says you must treat everyone the same, great managers know better.  They understand what motivates each person and make sure employees design their personal 90 day game plans to fit individual situations and the firm’s strategic plan.

A feeling of significance is important to employees today, and they want to know how they are contributing to the firm’s overall success.  Self assessment is a powerful tool, and the employee does this by completing both the accountability review and a 90 day game plan.  Management must simply review and insure the self-assessment is accurate and the employee is focusing on priority goals that integrate with the firm’s strategic plan.

Who does what?

The employee should be responsible for maintaining his or her performance evaluation system (i.e. accountability review and 90 day game plans).  That person should also schedule quarterly meetings with a supervisor.  The supervisor’s responsibility is to understand the firm’s strategic game plan and conduct the meeting with honest and consistent feedback.

Utilizing such a system will allow the firm to focus on the right outcomes, on employees’ strengths rather than their weaknesses, and build powerful teams.  The quarterly sessions allow the manager to discover each employee’s strengths, goals and requirements from the employee’s perspective.  Tests like the Kolbe Index™ also allow managers to start with a focus on the employee’s strengths from the start of employment rather than learning those strengths over the first year.

Where to focus?

Chargeable time is just one outcome, and not all employees will have chargeable time as their primary outcomes.  Outcomes can be broken into four primary categories:

1.    Financial
2.    Processes
3.    Client Satisfaction
4.    Development (training and learning)

With the advent of a labor shortage, firms are placing increased emphasis on the development of people, client satisfaction and unique firm processes.  Do employees follow firm standards and procedures when it comes to billing, tax preparation and financial reporting?  Are clients satisfied and willing to buy additional services from the employee?  Does the employee continue to develop personally—as well as develop other employees?  

Some refer to these measurements as the balanced scorecard.  I prefer to use the term “integration.”  There are many pieces to the firm management puzzle, and they must fit together in order to leverage firm resources.  The firm performance system should support the firm’s strategic plan and each employee’s (including partners) personal 90 day game plans.  This is called accountability and it all starts at the top.  Planning times people times processes equals Performance 3.