Step 1 formal feedback is the key to everything

Informal feedback is wonderful because it allows managers to correct problems as they arise from day to day; people are human and human beings are going to make mistakes. However, informal feedback is usually geared towards addressing a specific problem and does not have the same significance to employees that a formal evaluation does. For that reason, it is always a good idea to schedule formal sit-down evaluations with employees on a regular basis – maybe every six months or quarterly.

Step 2 know what your organizational goals are

It is important to know what you want to accomplish as an organization: what are your profit goals for the year? What sort of market share are you looking for? What sort of brand are you trying to build? When you know what your organization wants to achieve and when you have measurable goals in place, the next step is to come up with employee performance benchmarks that will help you achieve your organizational objectives. A good way of looking at this is as follows: how much product or sales do your employees have to produce each day, each week and each month for company revenue goals to be reached? What quality benchmarks do employees have to reach in order to ensure that the company reaches its quality assurance goals? And what behaviors from employees – punctuality, safe operation of machinery – are demanded if the company is to keep overhead costs down?

Step 3 rank employees to avoid central tendency error

When employers use ranking scales, they often rank employees in the middle to avoid having to give people failing grades. The key to overcoming this is to rank employees from number one to last; not everyone can be “average,” so this forces the identification of people who are not doing their jobs effectively (for a good overview of central tendency error, please see Indiana University, 2007). When you rank people relative to other people in the organization, you are better able to make hard choices about who is doing the job – and who is not.

In all reality, proper assessment is one of those things that distinguishes good businesses from bad businesses and great businesses from everybody else; if you want to build a business empire, then you have make assessment easy to use, easy to understand, and as unbiased as possible. The steps above can certainly help you move in the right direction.

Works Cited
Indian University. (2007). Evaluate job performance. Retrieved May 21, 2010 from http://www.indiana.edu/~uhrs/training/performance_management/evaluate.htm

One Broken Link Can Ruin the Chain

Remember that school-teacher-strict English lady on that TV quiz show a few years ago? Each round, she would tersely dismiss the poorest contestant with her withering catchphrase, “You are the weakest link—goodbye!” It’s a smart way to manage your business too.

WHAT IT MEANS: Like rocks in a stream or a leaky gasket in your car, it doesn’t take much to impede the smooth functioning or potential success of your organization. It could be a toxic employee or manager, a problem department, or perhaps a process or policy that’s tripping you up—whatever it is, it needs to be identified and fixed—fast! You can certainly make an attempt to intervene and correct, but if the problem persists, it’s probably time to get a new link.

ACTION PLAN: Look for bottleneck areas in your business. What’s slowing it down? What people just aren’t pulling their weight or seem to be a continual source of static and drama? Don’t avoid the possibility that you might (however unintentionally) be part of the problem. Keep your ear to the grapevine, and listen to what your coworkers and customers are saying. Where there’s smoke, there’s usually fire—but don’t wait till you’re badly burned to respond to it.

EVEN BETTER: Set clear, measurable guidelines and standards so that people know what’s expected of them. Also, try to have backup or contingency systems in place to handle overflow situations—perhaps another shift to handle peak manufacturing or shipping periods, or perhaps some arrangements with local temp agencies or external service providers to get you over the hump as needed.

(Excerpted from: 10 Clowns Don’t Make a Circus. . . and 249 Other Critical Management Success Strategies by Steven Schragis and Rick Frishman)

Wow – so many comments already, let’s move to the forums for more. We have copied the article there.

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Criticize Constructively

Is constructive criticism a contradiction in terms? Certainly not! It may, however, be one of the most difficult things you’ll have to do as a manager or business owner. Criticizing constructively can elevate, motivate, and help people’s performance be more aligned with your expectations. It’s an opportunity to reinforce relationships, not trash them—but you need to know how to do it right.

WHAT IT MEANS: Realize that whenever you need to criticize someone, you are treading on thin ice—people tend to be defensive when criticized and can create elaborate rationalizations that would surely strain almost anyone else’s belief. Never criticize anyone when you feel angry, insulted, or wronged. Never criticize in public. Never criticize in an emotional or accusatory way. Finally, focus on the deed, not the doer—on what happened rather than what the person did. If you can avoid the word you all together, you are probably on the right track.

ACTION PLAN: Be prepared before you call someone on the carpet. What exactly do you want to discuss? Paint a clear picture of what you expect in the future. Take the time to ask the person to explain his or her side of the story. There may be more to the picture than meets your eye. Also, insist that the person commit to doing what needs to be done to fix the mistake or prevent it from happening again. Understanding what to do and getting a commitment to do it should be your two goals.

EVEN BETTER: Let the other person suggest the remedy. Ask what it will take to keep this from happening again. Finally, end on an upbeat note. Thank the person for cooperating, express your optimism about the future, and let the employee know that his or her efforts are still very much appreciated.

(Excerpted from: 10 Clowns Don’t Make a Circus. . . and 249 Other Critical Management Success Strategies by Steven Schragis and Rick Frishman)