“Whatever gets measured, gets done” – that's one phrase you’ll hear again and again when it comes to performance management.

But is it really so?

There's no guarantee that tasks, objectives, or… anything else for that matter gets automatically achieved by simply attaching numbers to them. The only thing you can say with absolute certainty is that whatever gets measured, gets quantified. That’s just the beginning.

Productivity and performance management systems have a mirroring relationship and that is vital to organizational health. Just like any other ecosystem, everything in business is interconnected and survival depends on just how well decision makers understand that stand-alone “pieces” gravitating toward each other by chance, not by design, don’t make for a good long-term strategy.

Productivity and performance management share the same boat

Quality and Quantity brought together: at its bare core, productivity measures the efficiency of resource utilization, to achieve desired outcomes, and performance management systems (PMSs) come to help by providing the framework within which this efficiency is monitored, evaluated, and enhanced. They impact productivity through:

● goal alignment: cascading organizational goals down to individual objectives to help employees focus their efforts on activities that drive (desired) strategic outcomes

● performance evaluation: systematic assessment of performance, based on established benchmarks, identifies high performers for recognition and underperformers for support

● regular feedback and coaching: ensuring that employees are aware of their performance levels and areas for improvement, therefore enabling timely adjustments and skill development.

If there was ever an all-time ‘worst kept business secret’ top, tackling employee disengagement would be in the first three positions for sure. The workplace may exist in a state of constant change (and recent years have once again proved that to be right), however a couple of things have remained a constant priority for businesses over the years: how to drive productivity and how to correctly measure if the efforts to increase productivity are actually working.

Establishing clear performance metrics and expectations will help your people better understand their roles in contributing to organizational objectives while staying connected to their own needs.

So, let’s make things simple:

First: ensure specific, measurable, attainable, relevant, and time-bound objectives are defined.

Second: maintain constant communication (between managers and employees) to facilitate transparency, trust, and alignment of efforts.

Lastly: prioritize employee development by investing in training programs that boost their skills empowering them to excel in their roles.

Performance management done right equals productivity gains

In keeping with the same ‘simple and clear’ idea above, let’s think of performance management systems as sets of processes and tools used to ensure that employees’ and team’s performance align with organizational goals. The sets include strategy planning and strategy review mechanisms, performance tracking tools, or employee development plans and recognition strategy, each having both direct and indirect impacts on productivity.

This article is not the place to delve into all the resulting details, but a bird’s eye view is useful at this point.

Direct impacts:

● strategy planning/review mechanisms: a framework for assessing internal and external factors, clarifying organizational vision and mission, and establishing strategic objectives

● performance tracking tools: identifying instruments to measure, monitor and evaluate performance

● employee development plans and recognition strategy: tools for fostering individual growth within the performance management systems and provide a means to acknowledge and reward employees, playing a significant role in maintaining high morale and motivation (which, in turn, directly contribute to higher productivity).

Indirect impacts:

● Increased employee engagement: well-implemented performance management systems with rewards and recognition strategies in place boost employee motivation resulting in higher retention rates and reduced turnover, which in turn mirrors in overall productivity

● Alignment of individual and organizational goals: a well-structured performance management system ensures that employees understand how their individual goals contribute to the larger organizational objectives. This alignment helps employees see the value of their work and motivates them to perform at their best

● Resilience to Change: organizations with robust performance management systems are better equipped to adapt to market shifts and challenges. By regularly reviewing performance metrics, they can respond more swiftly to new trends or emerging issues, creating a culture of adaptability. This adaptability indirectly boosts productivity by minimizing disruptions, maintaining workflow continuity, and ensuring the organization stays competitive and sustainable in the long run.

But keep in mind that having smooth running performance management systems is only part of the big productivity picture. Other organizational factors such as leadership effectiveness, organizational culture, resource allocation, and innovation capacity also play consequential roles.

For optimal productivity, adopting a holistic approach – addressing both performance management systems AND the factors mentioned above – is the way to go.

Better days ahead

You might say it’s plain logic: good performance management systems inherently lead to good employee productivity. You might also say that good performance management systems have a positive moral impact, as they make possible a culture of ethical behavior and commitment which obviously adds to the amplitude of motivation and productivity.

You’d be right in both cases!

However, some efforts to increase employee engagement and motivation do not deliver, on the contrary – they end up doing the opposite. Here’s the question then: what is it that really drives employee productivity and how can businesses better understand the sources of employee engagement, so that the right policies are put in place to cultivate it?

There’s much to go into to thoroughly answer these questions but we could start with a few basic things that are sure to up your game. Begin by fostering a culture of open communication, where employees feel heard and valued. Next, ensure that goals are clearly defined and aligned with the company's mission, giving employees a sense of purpose. Finally, provide continuous learning and development opportunities, so employees can grow and contribute more effectively to the organization’s success, as these attributes are motivation-boosters and have direct influence over productivity.

Give credit where credit is due, that’s one fail safe approach to always consider. .

Final Thoughts

With all these elements included, a more accurate image emerges, and strategic decisions gain additional data range. This is when “whatever gets measured, gets done” makes better sense.

Maturity assessments bring this, and all other analyzed data together, identifying problematic areas, your organization’s maturity level and a customized roadmap to future development.

If you’ve reached the conclusion that you need to know more than you do now to future-proof your business, we can help. Drop us a line and let’s see what the right strategy for your organization looks like.