Face the facts: Creating a new performance appraisal system is
a difficult undertaking. It?s even more difficult if the
organization doesn?t have a logical, well-tested, step-by-step
process to follow in developing their new procedure.

Based on my experience in helping dozens of companies create
performance appraisal systems that actually work, here are ten
tips that will help any company create a new performance
evaluation system that will provide useful data and be
enthusiastically supported by all system users.

One ? Get top management actively involved. Without top
management?s commitment and visible support, no program can
succeed. Top management must establish strategic plans,
identify values and core competencies, appoint an appropriate
Implementation Team, demonstrate the importance of performance
management by being active participants in the process, and use
appraisal results in management decisions.

Two ? Establish the criteria for an ideal system. Consider the
needs of the four stakeholder groups of any appraisal system:
Appraisers who must evaluate performance; Appraisees whose
performance is being assessed; Human Resources professionals
who must administer the system; and the Senior Management group
that must lead the organization into the future. Identifying
their expectations at the start helps assure their support once
the system is finally designed. Ask each group: ?What will it
take for you to consider this system a smashing success?? Don?t
settle for less.

Three ? Appoint an Implementation Team. This task force should
be a diagonal slice of both appraisers and appraisees from
different levels and functions in the organization. The
implementation team is responsible for accomplishing the two
major requirements for a successful system. First, developing
appropriate appraisal forms, policies and procedures. Second
(and the task too often overlooked) assuring a successful
deployment.

Four ? Design the form first. The appraisal form is a lightning
rod that will attract everyone?s attention. Design the form
early and get lots of feedback on it. Don?t believe anybody who
tells you that the form isn?t important. They?re wrong. If
you?re designing a new form internally, make sure it assesses
both behaviors and results.

Five ? Build your mission, vision, values, and core
competencies into the form. Performance appraisal is a means,
not an end. The real objective of any performance management
system is to make sure that the company?s strategic plan and
vision and values are communicated and achieved. Core
competencies expected of all organization members should be
included, described and assessed. If your mission statement
isn?t clearly visible in the performance appraisal system,
cynicism will likely result. Values become real only when
people are held accountable for living up to them.

Six ? Assure on-going communication. Circulate drafts and
invite users to make recommendations. Keep the development
process visible through announcements and regular updates. Use
surveys, float trial balloons, request suggestions and remember
the cardinal principle ? ?People support what they help create.?


Seven ? Train all appraisers. Performance appraisal requires a
multitude of skills ? behavioral observation and
discrimination, goal-setting, developing people, confronting
unacceptable performance, persuading, problem-solving,
planning, etc. Unless appraiser training is universal and
comprehensive, the program won?t produce much. And don?t ignore
the most important requirement of all: the need for courage.

Eight ? Orient all appraisees. The program?s purposes and
procedures must be explained in advance ? and explained
enthusiastically ? to everyone who will be affected by it.
Specific skills training should be provided if the new
performance management procedure requires self-appraisal,
multi-rater feed-back, upward appraisal, or individual
development planning.

Nine ? Use the results. If the results of the performance
appraisal are not visibly used in making promotion, salary,
development, transfer, training and termination decisions,
people will realize that it?s merely an exercise.

Ten ? Monitor and revise the program. Audit the quality of
appraisals, the extent to which the system is being used, and
the extent to which the original objectives have been met. (One
of the great advantages of an online performance appraisal
system is that all of these data are available
instantaneously.) Provide feedback to management, appraisers
and appraisees. Train new appraisers as they are appointed to
supervisory positions. Actively seek and incorporate
suggestions for improvement.

A company?s performance appraisal process is critically
important. It answers the two questions that every member of an
organization wants to know: 1) What do you expect of me? and 2)
How am I doing at meeting your expectations? Using these ten
tips will help you develop or select a system to will give
accurate and complete answers to everyone.


About The Author:

Dick Grote is one of America?s most
successful and best-known authors, consultants, and speakers on
performance management, leadership and building organizational
excellence. He is the Chairman and CEO of Grote Consulting
Corporation and the developer of the GroteApproach web-based
performance management system ? http://www.groteapproach.com