There is broad agreement that effective people performance management is a major contributor to superior business performance.

• PWC (2009) found a strong correlation between performance management practices and business performance, with high performers preferring specific management practices. read more ...
• WorldatWork and Sibson (2007) found that high performing companies have leaders skilled in differentiating their performance messages to employees. read more …
• David Creelman and Dave Ulrich (2006) argue that HR practices have a major impact on business performance and company valuations. read more …

Organisations have quite different approaches to managing people performance. In some cases these approaches have become iconic (e.g. Jack Welch – reward the top 20% and fire the bottom 10% each year; McKinsey - get promoted or leave). All organisations have their own approach – explicitly in the form of process and policies or implicitly in the way people decisions are made. These approaches say a lot about the people and culture of the organisations.

There is no single “best-practice” approach, but the following elements are important for effective people performance management: 

• Close alignment between business objectives and individual goals
• Clearly articulated performance standards or targets for individuals 
• Regular, fair and balanced performance feedback for individuals 
• Meaningful consequences for individuals based on their performance

Performance management is all about the conversation held between appraiser and candidate in order to “recognise and reward” peak performance and “address and resolve” problem areas and under performance. Technology can be an enabler by removing obstacles to these (often difficult) conversations. At WOW Interactive we like to keep it simple and ensure the basics are done well.