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The Challenges of Performance Appraisal in the New Reality • Forbes Network • Forbes Mexico

by Rex Daniel

While it is premature to predict whether the workforce context created during the crisis will be the new constant going forward, it is clearer that pre-pandemic performance metrics have very little application now, in a work-from-home or hybrid reality.

Current rating systems fail to capture the digital reality that has forced people to do more with less, leading them to point out that the tools we use don’t allow us to know to act on them. Scharage (2020) from MIT suggests recalibrating Critical Success Factors (CSFs) to ensure work works, while respecting today’s blurred distinction between work and personal life.

This means that companies must renew their dashboards so that they become a tool that inspires people and work teams to achieve positive results. The new high performance management will depend on high performance measurement, where the exchange of quantitative and qualitative information becomes essential for the leaders and collaborators of the organization.

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The digital future of performance measurement will depend on how performance is measured and understood. For many companies, moving so rapidly towards remote work programs has forced them to improve their communication, but, more than that, they have found new ways to coordinate and collaborate to deliver on the promises of value to their customers. .

The results that have allowed us to see contingency so far are consistent with research The digital shift in performance management published jointly by MIT and McKinsey in 2019, where it is mentioned that “the biggest cultural and organizational change in performance appraisal systems will be feedback time, pace and impact. Instead of annual, quarterly, or impromptu reviews, companies focused on talent and accountability will encourage and enable near-constant feedback. »

More so: Constructive, trackable, and influential feedback will be the piece that motivates on one side and timely informs on the other in an environment of trust, transparency, and justice in the post-pandemic reality. Data-enriched, CSF-aligned feedback simultaneously promotes situational awareness and self-awareness: better feedback translates to better results. To achieve this, Scharage (2020) suggests leaders do the following:

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  • Embrace a culture of continuous feedback. Performance management platforms should facilitate continuous feedback on career development, growth, and opportunity, with a common perspective on what high performance means for the organization.
  • Clearly commit to evaluation and development. Development is important, especially for those who work remotely and don’t have physical interaction with peers or bosses, so systems need to provide enough information to the parties involved, so programs can be created. that encourage the behaviors desired by the organization, but also cultivate the development of new skills and abilities.

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  • Commit to transparency. The credibility and reliability of performance management largely depends not only on the fairness of the system, but also on its actual appearance. This statement becomes even more crucial for the current moment and for post-pandemic performance management. To achieve this, employees must be able to see that their contributions to meetings are recognized or the impact that their non-compliance has on the creation of value by the company.
  • Commit to performance management and alignment of CSFs. There is no meaningful performance management without measurable, clear and concise CSFs, so the success of creating and delivering the company’s value proposition to its customers depends on the alignment between these factors and expected key results. In this sense, it is the managers of the various functional areas and not HR who must ensure that performance management activities support measurable and valuable results for the organization.

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Rodrigo González Souza and Alejandro Vázquez Ríos, professors in the field of personnel management at IPADE Business School.*

The opinions expressed are the sole responsibility of their authors and are totally independent of the position and editorial line of Forbes Mexico.

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