Lately, we have had a number of occasions to assist our clients with performance related matters and this is an area in which many business owners feel totally at sea, in particular fearing they might ‘do the wrong thing’.

Performance management is all about getting the best out of your employees and not just when things go wrong, though many people only consider performance management in the latter case. Instead of managing performance as a last resort why not get on the front foot and manage the processes that maximise employee performance as an outcome. In operations terms, it’s a bit like the difference between breakdown and preventative maintenance.

So instead of managing performance per se, shift your focus to the following:

Managing Expectations. It’s important to start off on the right foot when employing someone and, to avoid costly misunderstandings, you should have the terms of employment clearly laid out in an employment contract. Covering everything from job title, hours and location of work, through to statutory entitlements and awards, the contract is a two-way commitment between your business and your employee. Next and equally important is the Position Description which should accompany the employment contract. At a minimum, the PD should cover the purpose of the role, the key functions and responsibilities as well as reporting relationships. When setting performance expectations, the PD becomes a key reference document that should be reviewed regularly to ensure it is up to date.

Managing Behaviour. If you want a harmonious environment where everyone works together as a team then you expect people to behave in a certain way to make that happen. You may have certain ‘house rules’ about what is or is not acceptable here e.g. in an open office environment talking out loud on the phone might be disruptive. But over and above this you need clear HR Policies in place that describe what is acceptable (and sometimes, legal) conduct. These policies should include Code of Conduct, Bullying and Harassment, and can even extend to use of Social Media. But even more important is that your people have been trained in applying these policies. But ultimately, it is about setting the right example and ensuring that as a leader and manager you are actually walking the talk.

Managing Results. A business thrives or fails on the basis of the results it achieves and it is vital from a performance perspective that every employee understands the contribution they make and what they are accountable for. This can be a source of frustration for some employers who simply expect people to know what they should deliver when in fact it has never been spelt out. Having SMART goals (Specific, Measurable, Attainable, Realistic and Time-bound) will provide clear guidelines for your people of the targets that need to be achieved and setting these with your employee will ensure you have their commitment and buy-in.

Managing Feedback. Finally, when building a performance-based culture you will find that feedback is the lifeblood of the system. Providing your people with the opportunity for regular, constructive and two-way feedback on performance will set everyone up for success. Don’t over-formalise this either, a regular weekly catch-up that is focused and to the point can be much more relevant to the pace of today’s modern business than waiting for a six monthly or twelve-monthly review. And if things are not working it is better to know earlier than later so corrections can be made.

Performance Management doesn’t have to be the negative version that you currently fear. You can achieve a culture of performance excellence in your business, by being proactive rather than reactive and, by shifting your focus to managing expectations, behaviours, results and feedback. If you do find your staff are not following agreed behaviours or not meeting agreed expectations, don’t put off having a discussion about your concerns.  The sooner you address your concerns the easier it will be to have the conversation and more often than not, the better the outcome.