Tag Archives: SMART Objectives

How Do You Improve Performance Reviews? Three Approaches

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Situation: A CEO’s company sets objectives for employees; however these objectives frequently aren’t met. There are lots of excuses for not meeting objectives. Most frustrating, employees are eager to share good news, but hide bad news and performance issues. What have other CEOs done to prevent these problems? How do you improve performance reviews?
Advice from the CEOs:
• A service company instituted frequent measurement of performance against objectives. Top staff monitors key metrics in weekly meetings that last at most one hour. They use a problem solving approach to address obstacles and to correct performance. The CEO oversees the direction with staff making and instituting changes to correct low performance. The key is in the metrics. Metrics must measure meaningful performance and must be tied directly to company objectives.
• A light manufacturing company had a history of holding on to non-performing individuals for too long. The CEO addressed this by instituting objectives and eliminating non-performers. The result was reduced complacency and improved morale. Performing employees had been tired of taking up the slack for non-performers. Document non-performance and establish a solid case for eliminating the non-performing employee. Documentation is critical to avoiding wrongful termination suits.
• A general observation: if a company has objectives, but lacks either meaningful metrics to measure performance against objectives or a regular review process to assess performance against objectives, then the objectives are meaningless. The CEOs’ experience is that establishing meaningful SMART (Specific, Measurable, Appropriate, Realistic, Time-Bound) objectives and regularly assessing performance in a collaborative team atmosphere are the most important ingredients to an effective performance management system.

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What are Best Practices for On-Boarding a New Hire? Eight Guidelines

Situation: The Company has identified a good candidate for a critical role. What are best practices for assuring successful on-boarding of the new hire?

Advice from the CEOs:

  • Provide a fair salary:
    • Review local salary surveys and pay a salary that reflects competitive realities.
    • Consider the impression that the offer makes on the spouse. If the spouse is unhappy, there won’t be peace at home and the employee may continue looking even after accepting your offer.
    • What about a 90 day evaluation period?
      • You won’t look like a serious employer. Increase chances for success by paying a fair salary from the beginning. If the individual doesn’t meet your needs, let them go.
  • Provide clear, concise direction from the start.
    • Provide an orientation to positively introduce the manager to the others in the company.
      • One-on-one meetings between the manager and key employees plus anyone who will report to the manager to establish initial rapport, and establish shared expectations.
      • Consider a lunch to introduce the new manager.
    • Set SMART performance objectives:
      • S – Specific
      • M – Measurable
      • A – Achievable
      • R – Realistic
      • T – Time-bound
    • Meet weekly with the new manager. Teach them what you’ve learned about the company, employees, and how things work.
    • Avoid shifting early objectives.
      • This is distracting and diminishes the chances of success.
      • Sudden or frequent changes in priorities make it difficult to generate momentum – particularly for a new employee.
  • Don’t expect instantaneous results.

Key Words: Best Practices, On-boarding, Salary, Objectives, SMART Objectives, Orientation, Expectations  [like]