A few years ago I delivered the closing general session presentation at the Conference Board’s annual Human Resources Conference at the Waldorf-Astoria in New York City. The audience: 600 VP’s of HR from Fortune 500 and similar organizations. My topic: “Performance Management — Best Practices, New Directions.”Halfway through my speech I asked the group three questions. I told them to raise their hands high and then look around the Waldorf’s ballroom to see how many of their colleagues responded the same way they had. First question: “How many of your companies have a formal performance appraisal system?” At least 95 per cent of the 600 hands went up.
“Second question,” I said. “How many of your companies have a formal, written-down-on-paper, vision and values or mission statement?” All but perhaps a dozen hands rose in the air. “Final question,” I said. “How many of you can take your performance appraisal form your left hand, and your mission statement in your right hand, and walk up to one of your employees and say, ‘Harry, look! Do you see where the words in the performance appraisal and the words in the mission statement are the same words?’ If you can, raise your hand!” Maybe nine hands went up.
The point is obvious. If employees see no connection between what the organization trumpets as its mission and what they’re held accountable for in their performance appraisal, they will become cynical about the importance of the stated mission. Executives expend enormous intellectual and emotional energy developing a sincere statement of the company’s mission or values that fully captures and accurately expresses what these top dogs consider to be truly important. But too often the only result is that these noble words are engraved on a brass plaque that decorates the lobby. Employees then see the mission statement as merely another feel-good corporate exercise with little impact on day-to-day business. But a good performance appraisal system can tightly link corporate strategy — mission and vision and values — with every individual’s day-to day performance.
Here’s the most straightforward way to link your mission statement and your performance appraisal. Add one more final section to your existing form. This final section has one question: “In the space below, identify the three things this individual did over the past 12 months to (write your mission statement here).” Then provide space for the manager to write down exactly three things that the employee did that helped further the organization’s mission. Putting that at the end of every appraisal will focus everyone’s attention on what is genuinely important. And it will force managers and employees alike to reflect on what they’re doing day-to-day helps further the overall mission.
About the Author
Dick Grote is a management consultant in Dallas, Texas and the author of several books. His most recent book, How to Be Good at Performance Appraisals, was published by the Harvard Business Review Press in July 2011.
