.png)
grow
Read time: 3 mins
What's one of the most underrated areas your competitors get wrong?
It might surprise you:
Performance management.
Did you know that companies that focus on their people’s performance are 4.2 times more likely to outperform their peers?
Companies trying to grow their business often know that their most valuable asset is their PEOPLE.
But very few of them have the appropriate performance management processes set up.
That’s why we wanted to share the 4 reasons businesses get performance management wrong, so you can get it right .
Let’s get into it!
4 REASONS BUSINESSES GET PERFORMANCE MANAGEMENT WRONG
1) They don't have clarity on all sides
Ensure all sides (e.g. your team member, you, and any other involved parties) understand the expectations, the metrics, the process, and the rewards.
This will prevent 80% of the issues.
2) They only focus on quantitative metrics
Don’t get trapped in only measuring the numbers (e.g. financials, hours spent, operating metrics, etc.).
Qualitative measurements can also be crucial to your business success because they measure 'how' a person works, not just 'what' they do.
You can have someone smash all their targets, but if they're a jerk as they do it, it's not great performance and needs to be addressed.
3) They're inconsistent throughout the year
It's really common for businesses to lack discipline in having regular performance discussions with their staff.
Suddenly, the end of the year rolls around, and your team members are lucky if you had 1 formal performance discussion with them in the last 6 months.
Instead, formalise a regular review rhythm in a process that everyone understands and sticks to.
4) They don't link the rewards to what really matters to their staff
Not everyone values the same thing, but a lot of managers treat their employees that way.
You can create high retention by understanding your teams and linking their performance to what they actually care about.
There is so much more when implementing your performance management process:
- How to manage different types of roles (individuals vs leaders)
- How to drive the development of your people
- How to document and continuously improve your process
But if you can overcome the 4 biggest challenges, you will be on your way to growing your business and getting ahead of those competitors.
If you want support to implement this in your business, or just want a few extra ideas, reach out here 🫡
And if you don’t have anything to drive performance in your team, reach out here too!
We've got you. 🫡❤️🙏
Thanks for reading and speak soon!
Steve and Lynne
TLDR:
- Businesses that focus on people performance are 4.2x more likely to outperform their competition.
- Ensure you are overcoming our top 4 challenges.
- Reach out for support if you need help.
When you're ready, here's how we can support you further:
▶ Join The Profit Program
We're teaching you the exact steps to grow your profit in 2024.
The program includes a 90-minute '5 Steps to 50% More Profit' series, a business health check, a profit roadmap session with us, access to a business builder community, live support and Q&A with us, workbooks & exercises to follow, and more.
Learn more here .
▶ Explore the archive
Did you know we have our entire catalog of newsletters on our website?
Check out past issues here .
▶ Work with us
We offer coaching & consulting to help business owners grow healthy, profitable businesses. Learn more and apply for limited coaching slots here .