What performance indicators do you use in you appraisal process?

Do you evaluate performance in the narrowest possible definition - using only profits, costs reductions, and the like? Or do you also list values such as teamwork, respect for others, etc., as performance indicators?

If you evaluate only the results of your direct reports, you are not evaluating their performance. By definition, employee performance is the sum of behaviors plus results.

If you only evaluate performance based on results, you do not know if the behaviors used to achieve such results were ethical, you are not reinforcing your organizations values, and you are not helping align your direct reports behaviors with your organizations strategic vision.

It is very difficult if not impossible to achieve organizational alignment if you do not use values in your leadership practice - and vice versa, you must not evaluate performance based only on behaviors, without taking into consideration results.

Profits, costs reduction, etc., (results) are only achieved by the quality of the human processes the organization has, like teamwork, decision-making, etc.

The quality of the human processes used has a direct impact on the quality of the results. If the decision-making process is poor, it is more likely that the decisions made be poor. If teamwork is poor, it is more likely that profits, costs reduction, etc., be more difficult to achieve.

If teamwork and respect for others are part of the organizations core values, the organization must translate such values into behavioral terms. Once core values are translated into behavioral terms, it is very easy for everybody (all employees) to hire according to such values, to evaluate performance according to such values, to promote according to such values, even to fire according to such values, etc.

It is a well-known fact that high performance companies such as GE for example, manage and lead their people based on their values. Core values are a leadership tool that facilitates organizational alignment and high performance.

Recent Past issues:

Goal setting
Have outstanding employees
Leadership vs Management
Behavior vs Attitude
Types of Feedback
Feedback and Motivation

Comments? Ideas? Feedback? I would love to here from you, just reply to this e-zine and tell me what you think.

See you next month!
Jose Luis Romero, Publisher
September 1, 2009. Copyright: All rights reserved
Skills2Lead Ezine is published on the first Tuesday of every month.

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