A Strategy For Tracking Performance

Published in: American Printer, September 1991

How do you know whether or not you've performed well this week, month or year? That's a question I'm commonly asked in my line of work. Employees answer in a variety of ways.

"My boss has subtle, and not-so-subtle, ways of telling me she's ticked off."

"The chief spends time with those individuals who are having a good run with their customers."

"Well, I haven't been fired yet."

"The way he looks at me. If he simply looks at me and gives an indirect nod, that means I need to get that report in quickly."

"He avoids me, doesn't talk to me, if things aren't going well."

The principle and practice of conducting performance appraisals (PAs) is a curious and treacherous study of business. Practically everyone agrees PAs should be conducted, but few supervisors feel comfortable actually doing them. What's more, few organizations train for, or conduct, performance appraisals on a regular basis and in a manner that's satisfying and constructive to participants.

What is the rationale for conducting a performance appraisal (beyond required company policy)? Is such an exercise in mutual stress and sometimes awkward confrontation worth the effort?

The reasons offered for conducting performance reviews are legion, but the lack of a clearly understood corporate context in which they are conducted predictably can lead to corporate misdirection and injured working relationships.

If a supervisor doesn't have a clear understanding of the corporate and department mission/direction, there is an immediate problem. What may be perfectly clear to the CEO in terms of corporate priorities is not always so clear to either department supervisors or subordinates.

If there is no written statement accompanied by daily reinforcement regarding what is most important in a company, the interpretation of priorities is, by default, left to the discretion of individuals and their supervisors. A corporate mission/direction, as supported by a corresponding department mission/direction, deserves clarity and reinforcement from the CEO and department supervisors, and is critical to the performance appraisal process.

Let's look at an example of department directions that are contradictory to a corporation's overall mission.

An enlightened marketing-oriented CEO believes that profits and sales growth are the result of identifying and passionately satisfying customers his company is best suited to serve. Department supervisors, however, do not understand the need for corresponding support from every corner of the company.

Contradictory department priorities might appear.

* Sales reps are pounded by the sales manager to maximize customer alteration charges in order to increase billings, their commissions and, perhaps, their quarterly bonuses.

* The accounting department insists on only two formats for invoices because using more than that takes extra billing time. However, using individualized formats for customers' accounts payable often speeds up payment and builds trust in the buyer.

* The delivery van is packed in the most efficient manner in order to maximize the load. Unfortunately, that doesn't match the most efficient delivery route or, more importantly, allow early deliveries to those customers expecting and needing them.

Each department is doing its best to meet goals and objectives — as the supervisors understand them. In each illustration, however, department missions sabotage the overall corporate mission.

This awareness of potential contradictions in department operations leads to a series of questions that will help clarify why a company should institute a performance appraisal system.

* What is being evaluated and emphasized in the performance appraisal that supports the corporate mission/direction?

* Do job descriptions illustrate and describe activities that support the corporate mission?

* Does each department have a mission that corresponds to the overall corporate mission, and do employees understand it by example and practice?

* Is there an ongoing effort in each department to find new opportunities to support the department and corporate missions?

* Are these issues left to the discretion of the supervisor?

Remember, a performance appraisal system should build clarity and reinforce a strategic corporate mission/direction. With companies in the graphic arts industry looking for opportunities to increase performance without having to increase debt load or sales volume, there are few opportunities more powerful than committing to and training a supervisory team in strategic PA.