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Top ten tips for measuring performance in your business

September 23rd, 2011 by Sharn Rayner
You can't manage what you can't measure, as the saying goes, and this applies just as much to your team's perfomance. Sharn Rayner shares ten top tips on measuring performance – from weekly catch ups to appraisal processes.
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  1. Know your business vision, your values and your strategic goals
    Where do you see your business in the future, what values matter to you and are they being displayed within your team?  What are your goals for the business?
     
  2. Communicate your vision
    Let your team know how their contribution adds value to the business.  If your team currently don’t have position descriptions, get the team involved in creating these – they can tell you what they are doing at an operational, hands on level.  You as the business owner and/or manager can then determine if what they are doing is appropriate for realising the business vision. When teams have been asked to prepare their own position descriptions, business owners are often astounded by what their employees are actually doing day-to-day. 
     
  3. Review your position descriptions and focus on your business objectives 
    Each job function should have an accountability and there should be key performance indicators in each position description (around three to five)– all of which should be focused on helping you achieve your business objectives.
     
  4. Induction plans and follow ups
    All new employees should have a full induction/onboarding processand follow up with their line manager at the end of the first day, first week, first month, second month and third month.  Review the new employee’s performance in line with their position description, targets and expectations.  Give feedback to the employee and address poor performance immediately.
     
  5. Have weekly catch ups
    Meet with your direct reports and make sure that others with direct reports are doing the same. These meetings should be focused on what the employee is working on, barriers/challenges, assistance they may need, any issues that they have encountered since the previous catch up.
     
  6. Quarterly reviews 
    These are a good opportunity to set goals with your team, helping them to work on new challenges and helping you to get to know them better professionally and on a more personal level – set challenges that are professionally focused i.e. learning a new system, mentoring a more junior team member; and personally focused i.e. training for a half marathon etc.
     
  7. Annual appraisal and performance development plans These could take place at a specific time each year or on the anniversary of an employee’s employment with the business; either way, they should give feedback on position competencies and key performance areas.  These reviews also provide an opportunity to learn how employees want to develop and even let you know how things could be improved.  Details from the quarterly reviews will support the completion of these documents.  It is often at the time of the annual review that negotiations will occur on pay rises and performance bonuses.  If you will have been keeping an accurate record of performance throughout the year, it should be easy to identify who has performed exceptionally, average or poorly and who, therefore, should be getting rewarded (or not).
     
  8. Poor performance
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1 Comment

Comments

25 September 2011 - 1:18pm — Phil Astley
Phil Astley's picture

Top ten tips

When I read this article I nodded in agreement - and thought that most would agree - but few actually DO anything. I learned the importance of this when I was working with clients. The husband and wife identified ten tasks, and then worked through a process to prioritise them.

The third item was their vision. When we reviewed it, I asked a few questions. In fact it was pretty dreadful - something the husband rushed through because hiw wife thought it was important. So they agreed to review it.

The next meeting was exciting. He'd not only reworked it (stil only 3-4 sentences) but it was their vision. This was shown by the fact that he had concluded that part of their business wasn't working - something his wife and I had been trying to tell him for some time. But it was his passion - his special part of the business. So we revamped that part so it worked better - in line with the vision.

This is just one example of how actually writing down the results of the first step made a big difference. It's so easy to say yes to each of these steps - but writing it down makes it more concrete.

Of course I'd also suggest that having an external pair of eyes can be very helpful in drawing out the maximum benefit.

—

Phil Astley
www.businessacademy.co.nz

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About the author

Sharn Rayner's picture
Sharn Rayner
Pod Consulting Limited
http://www.podconsulting.net.nz

I began my career in sports development, leisure management, training and coaching. Since then I have developed my skills to focus on working with businesses in the areas of facilitation, organisational development and human resources.

I work with the team to develop and implement the best and most appropriate human resource and organisational development practices – ensuring that businesses we work with improve employee performance, productivity and ultimately through enhanced processes and planning, profitability.

I am a member of the Human Resources Institute of New Zealand (HRINZ). I have a BA Honours in English Literature, a Post Graduate Diploma in Sports Development and training in all aspects of employee selection (including psychometric interpretation, structured interviews, assessment and development centre exercises, assessment design and facilitation, increasing productivity through 360-degree surveys, team-building, career guidance, leadership training, culture and climate surveying, job analysis, competency modelling and human resource metrics). I am currently undertaking a Graduate Diploma in Human Resource Management.

Auckland