High performance companies focus on performance management

We often listen from the successful business leaders that “People are our strength”. Recently I read the book “The High Performance Entrepreneur” written by Subroto Baghchi. He is co-founder and Chief Operating Officer of Mindtree Consulting, one of India’s most admired software companies.

Mindtree has grown from 0 to 3500 people and crossed $ 102 Million in revenue, all in six years, making it one of the highest performing companies in India.

Based on Subroto’s personal experiences, the book is all about entrepreneurship and how an organization can achieve high growth. Being involved in development and implementation of Performance Management Systems, one paragraph caught my attention.

Under chapter “Getting Good People and Keeping Them”, Subroto says’ “I can never overstate the importance of five things in managing high performance professionals: setup a performance management system that everyone understands, communicate with people with evangelical regularity, listen to the voice of your people through forums and regular perception surveys that are conducted by an outside agency, focus on development of leadership and finally create a support network for your leaders. If an organization knows how to do these five things right, it can scale without breaking up.”

He further tells about the processes at Mindtree, “The annual business plan of the company flows from the vision and in turn, determines the allocation of the resources. Individual objectives then flow out of the annual plan and people get their performance evaluation done at the end of the year, based on these objectives.”

We at Empxtrack always reiterated that a good performance management system in an absolute necessity for any organization to improve performance of its people. It is good to see that our thoughts are in conciliation with that of great business leaders like Baghchi. Unless business leaders set SMART goals for their key people and guide them to achieve them, it is difficult for company to become a high-performance organization.

A positive and fair measure of performance is a great motivator to employees. On other hand poorly handled appraisals in any organization leads to de-motivation and attrition.

Easier said than done, managing performance of the employees requires meticulous planning and execution. There are mainly two tasks at hand – managing the content for performance management system and managing the process. One needs to have written job descriptions, well define organizational goals, set of competencies and skills required for employees etc., which help employees understand the requirements of performance.

On the other hand, HR have to manage the processes like objectives setting/ appraisal, continuously track the progress of performance management system, collect data, and create reports for further decisions like increments, promotions, training and development of employees.

Empxtrack Inc. has helped many companies to improve their performance management process. Empxtrack has inbuilt job descriptions, competency and skills library, sample appraisal forms, predefined workflows etc. to help you quickly design and implement the Performance Management System for your organization.

If you want your organization to become a high-performance organization by putting a performance management system in place, feel free to fill the following form and one of our consultants will get back to you to discuss your needs.