People in professional service firms are
their greatest asset. In that context, we need to ask:
(1) Are we doing everything we can to
provide our teams the best of career and personal growth opportunities that
they deserve? (2) Do we spend the necessary time on reviewing our team’s
performance, giving feedback and offering it the mind space and focus that is
necessary?
This article is a take on how professional
service firms should review performance, encourage team members to perform
better and reward them for the performance that they deliver for the firm.
The Context
Professionals at every stage of their career
are normally inquisitive about their next phase of growth. Sometimes, even
without spending sufficient time on thinking through the roadmap for their
practice area development. It is important for partners to take the onus of
providing leadership, mentorship, guidance and a roadmap to the professionals
in their team so that they are not left scampering without a direction. It is
the obligation of partners and firm leaders to provide a high-quality
environment in which merit and performance are rewarded, apart from offering
experience and seniority. It is binding on the partners to ensure that they
work with the millennials in understanding how they think and work and, through
that understanding, to develop a framework that enables individual development
and provides a career roadmap to the persons involved.
GOAL – SETTING
The first step in the process of a
performance review is to ask the question: What do we measure the
performance against?
The objective of performance assessment is
served only when team members have clarity of thought and vision. Hence, each
individual in the firm should be provided with written, clear and specific
goals for the upcoming year, clearly highlighting where and how each individual
is supposed to perform. Key performance indicators should also be highlighted.
Effectively, one is developing a scorecard for an individual, relative to the
individual’s capacity and capability to execute and develop on a
mutually-agreed set of goals.
So, how does one really set achievable and
measurable goals? Here are five steps that one can consider:
- The first step in the
process is to look at the past twelve months and analyse: How did the
individual perform?
- The second is to identify
the individual’s core strengths and where he/she needs improvement;
- The third step is to agree
upon a process and timeline to streamline those areas which need improvement by
making actionable plans and which should be discussed with the team members
threadbare;
- Next, the partners must
identify the roles a team member can play in areas which are relevant and
critical for the practice in the coming year and incorporate them in the
scorecard;
- The final step is to hold a
discussion with team members and agree upon mutually acceptable goals and close
it with documentation.
PERFORMANCE REVIEW MECHANISM
Once the goals are set, it is important that
these goals are actually pursued and they get reflected in individual and
team performances. For this purpose the firm must establish a proper
performance review mechanism. It is not enough to just hold an annual review at
the end of the year – by then, the damage could already have been done. Quarterly
reviews ensure a gradual step towards improving performance by quicker
admission and follow-up on the areas which need improvement.
But how should one go about assessing
employee performance? The process of assessment can be divided into two parts:
• Facilitating self-evaluation, and
• 360-degree feedback.
The employee must first exercise his own
judgement and rate his performance on the parameters and goals previously set.
He must question himself: Have I worked on my weaknesses? Have I met my
performance targets? What was my contribution to the firm? The employee must
appreciate and be able to see areas that need improvement.
External feedback is also necessary to
assess actual performance. The firm’s seniors and reporting managers must
comment on the improvement seen with respect to the pre-decided,
mutually-agreed goals. At the same time,
feedback should be obtained from the entire eco-system in which the employee is
working. The employer should seek feedback from other team members, juniors and
clients to know how an employee has performed on various fronts. With
concurrent, self, upward, downward and external feedback, the employer now gets
a 360-degree review of the actual performance of the employee. The employer can
now discuss his observations with the employee and jointly decide the areas
which need further improvement.
ATTRIBUTES AND MOTIVATION
The key attributes which a leader must focus
on while reviewing performance are integrity, team spirit, attitude, the
individual’s orientation to the firm’s goals and performance management.
The attitude of the employees is a very
critical factor driving the performance of the firm. The partner must ensure
that all the employees feel good about what they do and that they perceive the
firm’s growth to be in consonance with their personal development. Such
motivation should also be seen at the team level by having a team-first
attitude.
FEEDBACK
Communication is the key to any process. The
way the employer conveys feedback influences the way the feedback would be
perceived.
Firstly, the
firm must create a culture where giving and receiving feedback (both positive
and constructive) is the norm. Secondly, acknowledging the importance of the
manner of delivering feedback; the partners must attempt to deliver even
negative feedback in a constructive way. Simple experiences can help us to
learn how to deliver constructive feedback. For instance, recall an experience
in which you were given constructive feedback. Now delve into the reasons why
the experience was positive or negative. What did the giver say or do that made
the experience positive or negative? Work on the areas which made the
experience negative and imbibe the qualities which made the experience
positive. This way, one can provide at least reasonably well-communicated
feedback.
Being emphatic and understanding while
providing feedback will ensure greater acceptance and improvement.
A PLAN FOR NEXT YEAR
An integral part of the performance review
process is to develop a plan for an individual. Let’s call it an Individual
Development Plan (IDP). This plan should ensure that the scorecard, the
individual development sheets, and the KPIs, along with the goals, are
documented after a joint discussion between the team member and the partner.
This annual plan will serve as the guiding plan for the next year’s evaluation.
The key aspect in completing the IDP and
planning for the season ahead is that the team member’s SWOT analysis should be
conducted and a joint IDP should emerge from it.
HAPPY TEAM MEMBER
The process of a performance review is meant
to enhance employee morale and give the firm a chance to evaluate the team
member. It is essential for the partners to understand how the employees
perceive the review process because it will make all the difference. A
performance review should be thought of as constructive feedback for individual
and organisational development. At the end of the process, the employee
should feel that the review actually contributed to his individual and team
learning. The best outcome of the review should be that the individual
comes out as a happy team member. Happiness stems from the fact that he/she has
a clear set of goals and a roadmap in mind which is directly in consonance with
his goals and needs.
ASPIRATIONAL TEAM MEMBER
Team members should be encouraged by
partners to achieve the highest standards of performance and integrity that
will help them to grow individually and also as a team. Aspirational team
members wish to see themselves ahead from where they were before. They need to
believe they are headed somewhere in life and have a purpose. A performance
review should, therefore, aim at a convergence
of individual development goals with the organisational goals to provide
value to each individual.
MEANINGFUL OUTCOMES
The ultimate objective of a performance
review is to get meaningful outcomes. Outcomes
don’t just mean improvement in the firm’s revenue and operations. The clear
identification of each team member’s strengths and weaknesses, improvement in
employee efficiency and alignment of the practice goals with the employee goals
is effectively the right step in the right direction. These outcomes are what
constitute a well-rounded and comprehensive performance review mechanism.
Professionals must strive to achieve this consistently.
Performance review is a process to help team
members evaluate: How did the year go by? What could he/she have done
differently? What are the learnings carried forward to the next year? While
executing this process, there will be emotional and professional upheavals
which a team member should accept with dignity and grace. Therein lies true
learning for a professional.
While all of the above may sound daunting,
is it worth the effort? Totally.
