According to CEB Research, why performance management fails to improve performance, is because over the last several decades, companies have become obsessed with gauging employee productivity and value using quantitative measures that solely look at past performance, and have spent too little time investing in evaluations that actually spur future performance.
With the decision, GE joins other high-profile companies—like Microsoft, Accenture, and Adobe—that have moved away from formal annual reviews.
“It existed in more or less the same form since I started at the company in 1979,” GE’s head of human resources, Susan Peters, tells Max Nisen who covers management for Quartz. “But we think over many years it had become more a ritual than moving the company upwards and forwards.”
According to Max Nisen, the new app is called “PD@GE” for “performance development at GE” with no numerical ratings. Each employee has a series of near-term goals, or “priorities.” Managers are expected to have frequent discussions, called “touchpoints,” on progress toward those goals and note what was discussed, committed to, and resolved. The app can provide summaries on command, through typed notes, photographs of a notepad, or even voice recordings. The focus isn’t on grading how well people are doing, but on constant improvement.
Employees can give or request feedback at any point through a feature called “insights,” which isn’t limited to their immediate manager, or even their division. Normally, you never get that feedback unless you manage to track someone down the next day, which people rarely do, and only from a direct manager. If you wait for an annual review, any specifics are probably long forgotten.
In the paper, “How Positive and Negative Feedback Motivate Goal Pursuit,” Ayelet Fishbach, Tal Eyal , and Stacey R. Finkelstein make a fascinating observation about the interplay between feedback and moods.
“When people attribute their mood to the feedback they received, the mood provides progress information and people are more likely to adhere to their goals when they are in a bad mood. However, when people attribute their mood to a goal-unrelated source, the mood signals to them whether to commit to a goal. In addition to general moods, distinct emotions signal the level of attainment on speciﬁc goals, such that people infer from their emotional experience (e.g., pride versus happiness) which of their simultaneous goals (e.g., long- versus short-term) they neglected or toward which they made sufﬁcient progress.”
Anytime, Anywhere Feedback is the mechanism you can use to create an environment of continuous, collaborative assessment that will give your employees real-time feedback on an ongoing basis from a wide team of contributors. With this tool, you’ll have the ability to provide both real-time and 360° feedback, which means your employees will get positive and constructive feedback not just from direct supervisors, but also from peers, colleagues, direct reports, and other managers.
According to Brandon Hall research, 92% of talent professionals consider real-time feedback an effective or highly effective development activity. By using Anytime, Anywhere Feedback in your performance strategy, you’ll provide your employees a more comprehensive view of their performance. You’ll help them to improve and develop skills and make stronger contributions to your organization’s success.
In response to agile, real-time feedback, employees can make changes and improvements immediately – translating to better product, customer service, or collaboration in the here and now. In every case, the result is better business outcomes.
By focusing on employee development and providing consistent and agile guidance, you’ll better motivate and engage your employees by demonstrating your commitment to their short- and long-term success. Millennials in particular value this kind of feedback and feel that it makes them more likely to stay with a company long term, increasing your retention and lowering turnover costs. The business benefits of Anytime, Anywhere Feedback and agile performance management are multi-faceted.
Download the PeopleFluent Guide to find out the 10 critical real-time feedback components your Anytime Anywhere Feedback should include.