Autonomy vs Alignment

After 20 yearly performance cycles and 30k performance forms later, I've built an extensive inventory of the good, the bad, and the transformative in performance management. Here are my top 3 challenges with traditional approaches:

1️⃣ Employees objectives are listed as tasks with a focus on output. Tasks may or may not be achieved but do we actually know why we are doing this objective?

2️⃣ When you work on an annual performance cycle, naturally you work your way backwards. You discuss the performance that has actually happened in the past. Cannot be changed or improved anymore.

3️⃣ Strong link to bonus payments may result in carrot approach, which then becomes a blocker to the creativity. Rewards are offered based on tasks completion or efforts, not based on the outcome and the impact of the action.

🎯 Hence, my pursuit for a more agile performance management has been a long search until I have adopted Objectives and Key Results (OKR) methodology to manage organisational performance.

👍 The below illustration of how autonomy and alignment works in teams is an excellent way of showing different organisational cultures and how leadership teams act upon. OKR is one of the methods to help the organisation move to a more agile organisation.

What were your main performance management challenges during your career? How did you overcome them?