Module II·Article IV·~2 min read
Performance Management: Goals, Feedback, Growth Conversations
Motivation and Engagement
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Performance Management Systems
Traditional model: annual appraisal + rating scale + bonus. Research: 90% of HR leaders consider it ineffective. Why? Annual feedback is too delayed; ratings provoke a defensive reaction; the process is perceived as an administrative formality.
Modern approach: continuous performance management — regular one-on-ones, frequent feedback, flexible goals.
Goal Setting: from SMART to OKR
SMART: Specific, Measurable, Achievable, Relevant, Time-bound. Good for operational tasks, less effective for innovation.
OKR: Objective (inspiring qualitative goal) + Key Results (measurable results). Allows for ambitious goal setting, encourages initiative.
Stretch Goals: intentionally ambitious goals that cannot be achieved "in the usual way." Require new thinking. Google: "If you achieve 100% OKR, they are not ambitious enough."
Feedback: How to Give and Receive
SBI Model (Situation-Behavior-Impact):
- Situation: “Yesterday at the meeting with the client…”
- Behavior: “…you interrupted the client three times…”
- Impact: “…which created the impression that we are not listening to his needs.”
Key principles: specificity (not “always”, “never”, but concrete situations); timeliness (right away, not in 6 months); separating observation and interpretation; focus on behavior, not personality.
Receiving Feedback: actively seeking feedback is a sign of a mature leader. “What could I do differently?” — more powerful than “How did I do?”
Growth Conversations
Career conversations: where does the employee want to be in 2-3 years? What is important to them in their work? What skills do they want to develop? How can the company support this?
70-20-10: 70% development — through experience (challenging tasks, stretch assignments); 20% — through others (mentoring, coaching, feedback); 10% — through learning (courses, books).
Practical Assignment
Conduct a growth conversation (or write a plan) with one of your subordinates: (1) What are their professional goals for the next 2 years? (2) Which three skills need to be developed? (3) What experiential opportunities (stretch assignments) can accelerate their growth? (4) What do you as a manager commit to doing?
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