Organizations want to become more “performance-driven.” This goal is clear in the federal government, where there is a shift away from the existing General Service (GS) compensation system which rewards employees largely for time in grade, to a system that is strongly performance-based. The trend also exists in the private sector, where organizations often base a percentage of total compensation on employee performance using incentive-based rewards.
Organizations are moving in this direction because they understand that performance-based practices will enable them to better accomplish their missions, solicit more favorable public reactions, and engender higher levels of employee performance. Organizations also understand that developing an effective performance management system is an important prerequisite to creating a high- performance culture in the workplace. Such cultures provide a work environment that encourages all employees to perform at their best, gives them a greater sense of satisfaction and accomplishment, and provides superior performers with opportunities for greater financial rewards and development. However, formalizing processes for monitoring, measuring, and motivating employees to achieve optimal employee performance is a challenging task.
The Booz Allen performance management model includes four key human resources processes (planning, performing, evaluating, and rewarding) and a number of components that focus on designing an integrated system. Moreover, the model highlights the need for the system to be integrated with the organization’s overarching strategy to ensure alignment between organizational goals and individual performance. A well-designed system promotes clarity of expectations, increases trust among supervisors and employees, and increases fairness and transparency in the system — setting the foundation for a high-performance culture in which employees and managers can focus on individual and organizational development.
Booz Allen’s approach for building effective performance management systems is grounded in our performance management model and ensures that all processes connect seamlessly. Design, implementation, and evaluation are the cornerstones of our approach.
Design — In the design phase, we help clients customize a system based on their unique organizational needs. For example, we develop performance management systems that can measure employees’ specific performance accomplishments and rate their behavior-based competencies. This dual-pronged approach enables the organization to measure both what employees accomplish and how they reach their objectives.
Implementation — During the implementation phase, we focus on developing training and communication plans that help clients successfully administer the new performance management system. For example, we train employees to develop performance objectives that have clear “line of sight” alignment between their work, the work of their units, and the mission of the organization. We also help organizations learn to develop “SMART” performance objectives that are Specific, Measurable, Achievable, Relevant, and Timed. When employees are able to write meaningful performance objectives, organizational performance improves.
Evaluation — Finally, in the evaluation phase, we collect and analyze data to determine and enhance system effectiveness. We measure employee reactions and capture objective data on the performance management system’s ability to effectively assess performance, differentiate performance levels, and provide a tangible rationale for proposed developmental actions.
Booz Allen has assisted many government and private sector clients in developing effective performance management systems, including:
Contract Number: OPM-01-01050
Contract Period: 31 March 2012