Optimize the Current Performance Appraisal Program

Most organizations have a performance appraisal program, but it is an administrative burden and full of holes, which leaves valuable opportunites on the table.
HR professionals and line-of-business managers may (or may not) understand that their performance appraisal programs aren’t delivering what they should, but don’t have the time or skill-set to change or improve it.
Performance appraisal programs are often built in isolation. Managers and employees do not have a sense of ownership in the process; therefore, they do not see the value in putting effort into the process of performance appraisals, especially beyond the annual review.

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Our Advice

Critical Insight

An optimized performance appraisal program has three key elements: validity, reliability, and simplicity. Achieving these three elements will garner engagement in the program.
The success of a performance appraisal system hinges on valid performance standards. Invalidity creeps in when performance standards are not linked to organizational goals.
Optimizing a performance appraisal program takes a critical and objective mindset. It is not easy, but when done well, a performance appraisal can shift the culture of an entire organization.

Impact and Result

Optimize your current program by finding gaps in the links between organizational objectives, departmental KPIs, and individual performance standards to achieve reliable and valid standards while simplifying processes.
Establish and maintain support from executives and managers by communicating throughout the re-design process to maximize the value of the performance appraisal program.

Optimize the Current Performance Appraisal Program Research & Tools

1. Assess the state of your current performance appraisal program.

Identify any gaps that are hindering the program from achieving maximum positive results.

2. Fill the gaps in your current program.

Optimize the program.

About McLean & Company

McLean & Company is an HR research and advisory firm providing practical solutions to human resources challenges via executable research, tools, diagnostics, and advisory services that have a clear and measurable impact on your business.

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A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your HR problems.

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Contributors

51 organizations contributed information to assist with the development of this solution set through survey completion and interviews. Due to the sensitivity of the information, all contributors requested confidentiality.