When it comes to running a business of any size, information is key. From sales numbers and social media engagement to marketing lead conversion rates and operating costs, knowing how your company is faring compared to its overarching goals is paramount.
While it’s always a good idea to keep an eye on your company at the macro level, you should apply that same attention to detail to individual employees. With a carefully considered performance management process, managers and employees can refocus their efforts and set expectations that line up with the company’s goals. Regardless of how big or small your company may be, performance management is an important thing to consider. In fact, business owners “should be thinking about [performance management] from day one,” according to Christine Tao, co-founder of Sounding Board.
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“Performance management is really about understanding and motivating employees to perform effectively to support the broader goals of the organization,” she said. “It’s also about aligning the individual goals of employees to the broader goals of the organization – because if you can do so, you can help the company achieve peak performance in congruence with employees achieving individual peak performance.”
Tao says performance management can help companies of all sizes “really take off and see success that is driven from its teams.” If done correctly, performance management begins with an aligned set of measurable objectives for each employee and engenders a culture of learning and development for higher workplace performance. Armed with the knowledge of what’s expected of them, each staff member should be motivated to improve their skills, competencies, development and delivery of results.