Here are more ideas for effective numeric ratings.
- In the APQC/Linkage study cited earlier, the best practice companies placed a significantly greater emphasis on the identification and assessment of competencies. These differ from goals in that they are formulated company-wide, usually by the executive group. They form an unchanging communication of what is most important for success in your organization.
Grote found the best practice organizations identified competencies, and then "defined mastery descriptions-narrative portraits of the behavior that one who mastered the area would likely engage in. While they are much more challenging to create, mastery descriptions give the appraiser a benchmark against which to compare the actual activities of the individual she is assessing. Even better, they provide the appraisee with a clear picture of exactly what the organization expects."
- Communicate the established criteria to the people who need the information to perform effectively. If the information translates poorly to a number, communicate a picture of outcomes expected that is vivid and understandable.
In an example, from a university student center, criteria for the manager’s appraisal and success included measurements such as the following. You will receive the highest numeric rating if you increase customer satisfaction by 50 percent as measured by customer comment cards; increase the profitability of the snack shop by 20 percent; and present an environment of cleanliness and efficiency in which no paper litters the floor, tables are wiped clean and cleared as soon as customers leave, trash is emptied prior to trash exceeding the containers, and so on.
Criteria were also established and communicated for a mid-range numeric rating, and a poor numeric rating in the same categories. This manager had absolutely no questions about what was expected and how the expectations would be measured. She was free to devote her energies to obtaining the most positive numeric ratings.
- Obtain employee input when establishing the criteria and the measurements for the numeric ratings. The above manager, in the university student center, helped to establish the numeric ratings criteria based upon what she thought would improve the student experience of her center. She helped create the picture of what would constitute success for her function. The manager of the catering department, as an example, had different, but no less challenging criteria, based on the needs of his customers.
- Review the employee’s progress on the defined criteria, goals, and competencies regularly. Quarterly is minimally sufficient to discuss the staff member’s progress. Monthly is better. Annually is not often enough to impact the culture and performance. Ideally, each employee knows how they are performing every day.
- Avoid the "horns," or "halo" effect. If an individual meets all established criteria for two months and then misses the target for the third month in a quarterly reporting period, take into consideration all three months. Too may times, the person’s performance is assessed based on the down month. While you want to help the employee problem solve and look at opportunities for improvement, the one down month should not define the person’s performance for that quarter. You will want to watch for a trend and address it as soon as the trend is apparent.
- The employee needs to see and read his performance ratings, rankings, the judgment calls, and the previously established criteria that came together to form his ratings.
- Jack Zigon also recommends having the employee collect their own performance feedback data as often as possible. This can save the time and energy of the manager and allows the employee, who is most familiar with his data, to present it. This helps the employee take ownership of the data and reduces disagreement and suspicion over reported results.
Done well, performance criteria and ratings can contribute to a positive, powerfully motivating experience for organization members. The presence of numeric ratings and performance criteria in your performance management system can help you formulate the culture you need for success as an organization. Employees know what is expected of them, and they experience few surprises. People know what to work toward, and they know the rewards and recognition they will achieve with their success.
How many people do you know who get up in the morning, and go to work thinking, "Gee, I want to be a 3.0 employee on a scale of 5.0 today?" Not many. Most people want to do a great job and see their contribution to the success of their organization. What stops them?
Unformulated and unclear criteria for success. An uncommunicated numeric ratings system tied in to unestablished and unsubstantiated performance expectations. Infrequent feedback. An environment of "guess how to be great, because we sure aren’t going to tell you." Get real, managers. We can help our organizations do better than this.
