Rick Ross on Business, Technology and Life

Moving Beyond Performance Reviews

Performance reviews have a seductively logical appeal. There's no need to belabor the point by enumerating their obvious positives. And besides, aren't they essential as an "objective" basis for raises?

Despite their merits and ubiquity, there's a pervasive sense that this staple of company life is hopelessly flawed. Is his post, Do You Have a GOOD and SIMPLE Performance Evaluation Form?, bestselling business author Bob Sutton laments: "As many of you know, I have expressed considerable skepticism about whether performance evaluations are even worth using".

The Right Time for Change

Keep in mind that neither success nor failure is ever final - Roger Babson

 

The company president's unwaveringly optimistic disposition seemed to be failing. He looked worried. "Sales have slowed to a trickle. I can only meet payroll for about 18 months." The technology on which the company's main product was based, and the associated business model, were hopelessly outdated. A major redevelopment effort was required at the precise moment when the company could least afford it. The demoralized staff made a comeback seem even more unlikely.

Troublingly, the problems weren't a surprise. No expensive consultants required, the inevitability of the needed changes had been obvious for years. But until recently, brisk sales made it too easy to put off the expense and effort.

How to Ensure that Your Employees Feel Valued

In his recent HBR post, How Are You Feeling?, author Tony Schwartz writes:

"The more we feel devalued — and we all do at various times, to varying degrees — the more energy we spend defending and restoring our value, and the less energy we have available to create value."

He continues:

"Unfortunately, this issue rarely gets addressed in the workplace."

When employees feel undervalued, not only do they underperform, they're also more likely to leave. The problem's prevalence and substantial cost (usually grossly underestimated) make it an issue that's well worth addressing.

A Table Has Four Legs ...

  and so does an organization:

• Employees
• Customers
• Vendors
• Owners or Shareholders

Each group is part of a system. The obvious common denominator:

People

And people have an unexpressed but chronically underserved need:

To be valued

Balance is achieved when each group values the other groups to which they do not belong. Lack of balance among their interests leads to instability and dysfunction.

While Tony Shieh of Zappos is known for providing legendary customer service and an exceptional work environment, it's clear that he gives just as much thought to Zappos' relationships with its vendors. The annual "Vendor Appreciation Party" attended by over 1,000 vendors and twice as many employees is one example of his attempt to bullhorn, "we value our relationship with you and you're important to our success".

Thinking Too Much Business Game Changers #5

 

Need to solve a problem? Business education, whether it's through formal channels, books or consultants, has a strong bias. Thinking - careful consideration and analysis - is touted as the best tool for the job. If a mistake is made, it must be that the thought process was insufficient.