Exploring the Evolution of Performance Management

When it comes to effective management in the workplace, performance is the ultimate indicator of success. Ultimately, managers don't manage work, ideas, procedures or results; they manage people and they manage performance. However, evaluating and improving performance in the workplace has changed significantly over the years. What worked for Company “A” 40 years ago is simply not going to be effective for Company “B” in today's world. The nature of business has changed considerably in the last several decades, but the people who act as the lifeblood of each and every organization have changed, too. As new generations enter the workforce, they bring new sets of values and ideals with them. As a result, the evolution of performance management has always been shifting and changing.

To help you understand why traditional performance evaluation and management are dead, I'd like to share a brief history of the evolution of performance management. You'll see that even though the objectives of business have remained similar over the years, the ways in which businesses achieve success through the performance of their people has been altered significantly. You'll also see why the role of consultants is one that will only expand in the coming years as businesses work to keep up with the many changes they will face.

Command and Control

The modern workplace was born in the aftermath of World War II when Traditionalists and, eventually, Baby Boomers dominated society and its systems. The structure of the workplace during this era was influenced heavily by military culture, and the Command/Control model of leadership dominated.

It was during this time when Traditionalists implemented the annual performance appraisal as a tool to manage the up-and-coming Baby Boomers. This tool worked well during its time, but it's been surpassed by other tools in the intervening decades. Unfortunately, a number of businesses have not evolved past this level of traditional management and its associated tools.

Managers from this school of performance management are a dying breed. Today's workforce demands more interaction and engagement from managers and other business leaders. What's more, the disconnect between the Command/Control model and the emerging Millennial generation is too powerful for it to be effective anymore. Therefore, a number of businesses are looking to experienced people like you to help them.

Disconnection and Automation

As Generation X began to enter the workforce, so did a number of technological advancements designed to improve performance management. Unfortunately, the old ways of doing things still dominated. This meant that managers spent even less time managing their people. Instead, they let automated systems and algorithms determine the value of their employees. Interactions waned even more, but Generation X simply accepted this scenario as the reality of the modern business world.

During this time, annual performance appraisals continued, but they began to become less and less relevant. Moreover, managers became even more disconnected from the realities of the workforce. Sure, open-door policies were the norm, but did anyone ever take them seriously? The status quo remained like this for some time; managers had some fancy new tools and a new generation entered the workforce, but the essence of performance management stayed the same as it was during the initial years of the postwar era.

Millennials and the New Millennium

The world has changed rapidly in the last 20 years. Digital technology and connectivity have broken barriers that kept people disconnected from the world and each other, and a new generation of hopeful, authentic and eager people has entered the workforce. Generation Y, which is also commonly known as the Millennial Generation, is beginning to dominate the business landscape, and it will only become more dominant in the coming years.

This generation is causing a massive shift in the evolution of performance management. Members of Gen Y are simply unwilling to accept the status quo. They demand real-time feedback, and they demand authenticity from their leaders. To them, the traditional means of performance management and appraisals are useless. What's more, they aren't simply going to go along with the status quo because they've been told to do so. They're intelligent, and they know that there are better ways to improve and sustain high levels of performance.

Generation Y is demanding the next stage in the evolution of performance management. Some organizations are reacting positively to this, while others are ignoring the voices of the Millennials. In my view, the organizations that embrace this evolution are the ones that will experience the most success in the coming years. They'll also be better able to tackle the next, inevitable evolution of performance management. After all, a new generation is always around the next corner.

The Role of Independent Consultants

As a consultant, you'll be able to put your experience, talent and perspective to work for businesses that want to make themselves attractive to the most valuable members of Gen Y. Your appreciation of the evolution of performance management will allow you to implement real changes, and your perspective will help you convince managers that avoiding the demands of the new generation is pointless. If you want to be a part of the continuing evolution of management and you're eager to make a positive difference, consulting gives you the perfect avenue to do so.

Are you interested in learning more about how you can help businesses adapt to the evolution of performance management? It's time to consider a career in consulting. Start by reading Buddy Hobart's fantastic eBook, “Experience Matters.” Then, dive into the free Ex3 Matters Consulting Guides for exclusive information and insights you won't find anywhere else.