October 2007 Deep Insights

Performance evaluation begins by setting goals for the future, matching capabilities and talent against the goals and then structuring metrics to tell everyone if we are moving toward our goals.

Goals are the foundation of performance evaluations. Without goals all views of the here and now become subjective. Each view is determined by an individual who creates chaos. Goals allow people to know where they are expected to go and what part they will play. Goals serve as the impetus to develop new skills, discard outdated skills and enhance skills that are useful. Goals and skill development set the evaluation process in motion.

Assessment of capabilities against goals leads to the future success of the individual and company. When an individual learns where the company is headed, understands how his or her capabilities will or will not add value, a vision for what is needed arises. This vision is no longer an individual vision but a global vision in its formulation to achieve success for the company.

Metrics are the mirror for effort in motion to achieve individual and company goals. Metrics are interventions for everyone to focus on their efforts producing results. If results are not forthcoming, efforts must be redirected to ensure success. Transparency of metrics is the best of all worlds allowing people to make adjustments independently before goals are not met.

Performance judged against goals with metrics to forestall crisis will lead to individual and company success.