Performance Appraisal is Dead!
So, if performance appraisals is dead, what do we do instead? We replaced performance appraisal with self-assessment, interlinked goals, transparent progress and continuous dialogue.
This means the transformation of culture. So learning the collaborative interconnected goal setting protocol isn’t enough. You have to change the culture and structure accordingly.
Our biggest mistake is still believing that we can subjectively determine who on the team contributes more to the goal. It is safer and more effective to make the contribution transparent rather than trying to evaluate it subjectively. Let your employee see his own contribution, measure his own quality perception and determine his speed.
We know that using OKRs as a performance appraisal tool reduces rather than improves performance. Because the person who thinks he will get an evaluation, a grade in the end, does not set high level goals.
This only couse stresses the evaluator and the evaluated person, reducing performance. On top of that, this stressful motivation-reducing process comes at a cost.
Let’s say you set a target of at least 2 hours for each employee and evaluated the target. Of course, it should not be forgotten that you have another 2 hours to prepare for this evaluation. Let’s take the time that a brain worker can work focused and productive as a maximum of 4 hours per day. Does anyone ask why daily focusing time is getting so low? Let’s explain right away, our brain and attention focus for a certain period of time. Every time it starts working like a machine, it cannot produce immediately. Time spent in traffic, getting ready to work, focusing, relieving brain fatigue, socializing, meetings, dealing with unimportant operations, toilet, food, coffee, tea, etc. Even this time stays high when the times fall. Therefore, the time you say we allocate only 2 hours costs at least one working day a year. If you are really focused and preparing properly and if you focus and make an effort for a correct assessment will be take more. You can calculate the cost from your own real data. This cost can reach as high as $3,000 per employee per year in a US company.
Time and Energy
The total energy and time of the company is not infinite. So, time and energy are the only real resources. So, you have used this resource for a process that is likely to reduce motivation and performance, and at best does not change it. If you have associated this process with OKR, the targets have already started to be set lower.
Do you have any other choice but to improve performance in this situation?
OKRs reveal your employees’ intent for the company. Performance, on the other hand, is about how much of this intention is realized in a disciplined and quality way. Therefore, the interconnected but subtle distinction between these two should not be overlooked.
You should replace your old performance evaluation system with new generation performance development systems that make the contribution dynamic and transparent.
Let OKRs become inspiring goals.
Let every contribution, speed and effort put forward to reach the goal become transparent.
Long live OKRs and performance enhancement! How does? With Myliba…