By Averil Williams
Performance reviews are often misunderstood and underutilized. If done properly, they can ensure success at both the organizational and employee levels. Performance reviews go far beyond the weekly production and planning meetings. Although, these meetings are very important to the day-to-day operations of any organization, they have an entirely different focus.
They zero in on the ‘now’; they are firefighting activities for corrective measures with little consideration given to preventing recurrences. Performance reviews, by contrast, target the ‘what if’ and planning for improvement. The root causes of non-conformances are identified, as emphasis is placed on developing effective corrective and preventative action whilst eliminating recurrence of recognized non-conformances.
Performance reviews draw much power from the requirement that occur at ‘planned intervals.’ The planning and scheduling used to determine how and when this process will be performed contributes a strategic, forward-looking importance to the review. Planning and scheduling also provide ample notice for the assembly and submittal of data that will be used in the performance review.
Typically, reviews are conducted between two and four times per year. At the employee level, it is typically conducted twice for the year. These reviews are done best when a defined and documented process is followed, which ensures that all aspects are covered and records maintained.
The Annual
Management Review
The Annual Management Review is a key instrument to assess the effectiveness of the management system. The agenda will normally cover (but is not limited to):
● Suitability of existing Policies
● Management System Structure
● Compliance with Procedure Review
Standards
● Legislative change requirements
● Audits (Internal and External)
● Incident & Action Reporting
● Business Performance Management
● Improvement Strategies
● Change Management (management of organizational and culture change)
The outcome of the Review should be the basis for the upcoming year’s Business Improvement Plan and input into the Business Planning Process.
The Quarterly Performance
Review
The Quarterly Performance Review covers many business performance issues whose frequency of change is typically longer than monthly. The scope includes a review of:
● Risk Profile
● Business improvement plan imple-
mentation progress
● Closure of action items from audits, investigations, stakeholders issues, etc.
Focus is primarily on progress and action that have occurred over the past quarter. This review should be the same used to summarize performance for the quarterly meeting with the Executive Team. Performance (business or process) issues/concerns or successes identified in this review should be highlighted in the quarterly reviews held with the Executive Team.
The Monthly Performance
Review
The ‘Monthly Performance Review’ is intended to monitor performance against targets and identify trends for all areas of business performance. It is to assure that plans are being appropriately applied. This review requires that defined metrics be in place. All elements of the metrics are displayed in the form of a Dashboard with indication of whether the metrics are meeting the target. These metrics should cover all key business result areas:
● Cost
● Product Quality
● People
● Asset Reliability
● HSE
● Margins
● Core, enabling and governing processes.
The Employee
Performance Review
Managers who routinely review employee performance and conduct regular employee evaluations reap tremendous benefits:
● Employees will know what you expect of them. They will receive feedback, praise, and criticism of their work, and will have notice of any shortfalls in their performance or conduct.
● You can recognize and reward good employees and identify and coach workers who are having trouble.
● The communication required to make the evaluation process effective ensures that you will stay in tune with the needs and concerns of your workforce.
Performance evaluations can keep you out of legal trouble by helping you track employees’ problems. If you ever need to discipline a worker, you will have written proof that you had given notice and/or warning.
The Performance
Review Output
The outputs of regular, planned, effective performance reviews are decisions and actions that result in continuous quality improvement. The improvement may be to product, personnel, the work environment, and or the facility. Decisions and actions related to the resource needs may include training, continuing education, new equipment, computer network updates, or new software programmes. All of the outputs of performance reviews ultimately impact the employees and customers through improved product, ability to meet schedule demands, fewer defects, and an overall ability to consistently meet customer requirement.
Averil Williams Bsc, CSPM, COM is a Consultant –averil.williams4@gmail.com
