Innovate Vancouver = Innovation Competencies (cited)

Performance Management Framework: Supporting Innovation

Agency culture and employee/customer satisfaction are correlated with the organization’s recruitment practices, training efforts, and evaluation resources. The organization’s performance management framework also determines its opportunities for innovation. 


Business Alignment


When the goals, resources, and tools are unaligned low employee morale, performance, and customer satisfaction can result. It is crucial that organizations have a plan set in place for recruiting employees with the right knowledge, skills, and abilities to match the job description and the customer’s needs.

This may be considered a luxury in some industries where wages and resources limit recruitment efforts to candidates with no experience or entry level skill sets.


Recruitment


The challenge in these cases is that once the unqualified candidate ‘gets past the screening process’ and is hired their ‘input’ and ‘performance’ will influence the rest of the system. Subsequent recruitment efforts, some emphasizing internal recruitment in order to avoid repeating past mistakes, perpetuate these challenges as the same candidates are promoted to higher internal levels.

 

Change management principles will face almost insurmountable challenges as stakeholders of the status-quo have more influence. The ideal solution for culture change, and performance management, is to start from the beginning.


Performance Management Framework


What is needed is a recruitment, retention, and development framework that insures performance requirements are matched from the beginning. Without this framework the likelihood of a suboptimal organizational & performance culture is likely to be reinforced.


Homeostatic Mechanisms


Organizations will subsequently experience homeostatic mechanisms that inadvertently maintain this suboptimal status quo and resist iterative improvements, accountability, and systemic alignment. Customers begin to demand less as they expect less in return.

It thus becomes the organization’s responsibility to understand the customer’s yet to be identified product/service needs as it attempts to re-establish its relevancy in the industry. Upon this foundation is the deliberate co-creation of the organization’s culture and artifacts that seek to establish standards, expectations, and reinforce performance.

Organizational Structure

The organizational chart which identifies the roles, responsibilities, and relationships for implementing the policies, tools, teams, and evaluation processes that follow.

Each of these levels must be developed with the inter-dependencies in mind. This means that the job description is written with consideration of the relevant organizational policies & procedures, structure, and values, etc.

Without this alignment the organization’s ability to meet customer expectations, support qualified staff, and reach contract specifications will be strained.

  • Internal recruitment is limited to the ‘best candidate,’ but not necessarily the ‘ideal candidate’
  • Contract specifications are not reached
  • Service hours fall behind
  • Error rates increase
  • Customer expectations are eroded, along with product & service relevance
  • Transparency, accountability, and opportunity for course correction (system alignment) is decreased
  • Open communication (and having difficult conversations) occurs less often (and in fact may be resisted)
  • Performance evaluation & measurement is either superficial or emphasizes the status-quo

Integrating Customer Service Networks


As the organization’s performance pursues a ‘regression to the mean’ outer systems and inter-dependencies are affected. This trend is reinforced when governments lack familiarity with the service community:

  • An organization’s business model,
  • How it operates,
  • How it reports performance (and information not included in these reports),
  • What systems/norms are interfering with a course correction, or
  • How the government (and the organization) are implicitly agreeing to miss performance specifications, misallocate funds, and maintain the status quo.

Legacy Systems


The news channels also share stories of organizations caught in public scandals, with subsequent and significant government intervention, only to retain members/processes/artifacts of the previous system that contributed to the scandal in the first place. Homeostatic mechanisms that maintain the previous system still exist.


Customer Driven Innovations


Even more shocking is that one of these organizations resists government and regional directives for ‘local co-collaboration’ in order to improve services, products, and programs. And this is done with the organization’s implicit belief of retaining moral and professional authority in the region.

Change Management Innovation Competencies  Performance Management Framework

I also hear stories of organizational cultures where government reports, customer documents, and service plans are missing key details (and data) sufficient to maintain transparency, facilitate course correction, or insure funding is used as intended.

Feedback Mechanisms

These problems also result when homeostatic reinforcing mechanisms (of the status quo) are introduced in ‘isolated pockets’ of the organization; but without executive oversight, inquiry, or consultation. In many cases these ‘events’ are ‘swept under the rug’ without further review or corrective action. In other cases someone loses there job but only after significant derailment has been allowed to occur.


Performance Management Competencies


The following image displays some of the competencies each organization can build in order to better evaluate its performance management framework:

Innovate Vancouver = Innovation Competencies (cited)  Performance Management Framework

A system’s approach to performance management isn’t easy but it’s well worth the effort. Without a systems approach to developing a performance management framework the organization is likely to be left with unaligned components, metrics (if they exist), and outcomes.

How does your organization evaluated performance? How would you describe your organization’s current performance management framework?

Travis Barker, MPA GCPM

consulting@www.innovatevancouver.org

No names were used in this article (when known) to maintain confidentiality. The case details used are for example only. 

Innovate Vancouver is a Technology and Business Innovation Consulting Service located in Vancouver, BC. Contact Innovate Vancouver to help with your new project. Innovate Vancouver also gives back to the community through business consulting services. Contact us for more details.

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