As per a study by Gallup, in 2017 only 20% employees reported that they are

satisfied with the way organizations manage their performance.

Until recently, half-yearly and annual performance reviews were the only
processes that were predominant methods to manage the performance of
employees across organizations globally. But over the years, organizations have
realized that it is ineffective to measure performance through these methods
only and have many flaws. Moreover, a one-time performance review proved to
be a burden on the HRs and managers conducting it. 

Organizations like Adobe, GE, Deloitte, IBM, Gap, and many others have
already ditched the concept of annual performance reviews; and are slowly
shifting or have shifted to a more modern and effective method of managing
employee performance known as real time performance management.
Considering the current situation, where employees have been working from
home for months now, it can be very common for them to be disengaged. Real
Time Performance Management will help keep them engaged and always
motivated. It is the responsibility of the head of people to initiate the practice.
So, if you have not done so yet now is the time.

What is Real Time Performance Management?

Real time performance management is a type of employee performance

management strategy that takes place continuously throughout the year. In real
time performance management, employees and managers communicate with
each other about their goals and performance frequently instead of discussing it
only during the annual review. Employees get to set actionable goals, improve
their performance, remain engaged at work, and achieve organization goals.
Read on to know how you can implement it successfully in your organization.

Management Support

To implement any new process in an organization, the management and senior

leadership must support the same. So, the first step in implementing real time
performance management is to get management and leadership support.
Highlight to the management because the transition is necessary and how it
would benefit not only the employees but also the organization. Make use of
facts and data on how implementing real time performance management has
helped other organizations. Once management gives the nod, it would be easy to
get other employees on board.

Real Time Performance Management Software

In the current scenario, where everyone is working remotely, it is necessary to

have a software or tool to manage all the aspects of real time performance
management. Tools like Enragedly offer the flexibility to share real time
feedback, set dynamic goals and OKRs, conduct 360-degree reviews, and
reward and recognize your employees in real time. Moreover, real time
performance management software makes the goals more visible and
transparent to the organization and makes it easy to track employee progress.

The purpose and goals of performance management

The purpose of performance management is to give both managers and

employees a clear and consistent system within which to work that, in turn, will
lead to increased productivity.

 This system shows employees the pathway to success, allows for

the measuring of performance coupled with feedback and offers
training and development opportunities.

 Performance management allows management to understand what

their employees are doing and track progress on company
objectives while providing consistent feedback.
There are five main objectives of performance management:

1. Develop clear role definitions, expectations, and goals.

2. Increase employee engagement.

3. Develop managerial leadership and coaching skills.

 4. Boost productivity through improved performance

5. Develop a performance reward program that incentivizes

accomplishment.
These performance management goals show a clear path from the developing of
goals to the rewarding of increased accomplishment. If one of these
performance management objectives is not done well, then the others will suffer
as a result.

Accenture is a massive company - over 330,000 people, so changing their

systems means a huge effort. When they switched to their new system, they got
rid of about 90% of the previous process. Now, they are using a more fluid
performance management process where employees receive ongoing, timely
feedback from management. This has been paired with a renewed focus on
immediate employee development and an internal app for communicating
feedback.

There are common threads in all these examples. Each company has built a
system that works for them, rather than following a one-size-fits-all approach.
What works for one company might not work for another - it depends on the
industry, the speed and flexibility of the company, and the overall goal of the
system itself.

Adobe calculated that managers were spending about 80,000 hours a year on

performance reviews, only to have employees report that they left those reviews
demoralized and turnover was increasing as a result.

Seeing a system that only produced negatives, Adobe’s leadership team made a
bold leap into a performance management system that began by training
managers how to perform more frequent check-ins and offer actionable
guidance, then the company gave managers the leeway they needed to
effectively lead.
Management was given much more freedom in how they structured their check-
ins and employee review sessions, as well as more discretion in salaries and
promotions. Employees are often contacted for ‘pulse surveys’ - a way for the
leadership team to make sure that individual managers are leading their teams
well. One of the many positive results of this has been a 30% cut involuntary
turnover due to a frequent check-in program.