Brandon Hall Group Report Touts ‘People-Centric’ Model for Performance Management

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Organizations with Coaching Culture 2½ Times More Likely to Rate Performance Management as Effective, Research Shows

Organizations that approach performance management through a people-centric model featuring short-term goals, coaching and in-the-moment feedback, and frequent recognition of good work are 2½ more likely to rate their performance management as effective, according to a new Brandon Hall Group report.

“Only 20% of organizations follow this people-centric model, but those that do are getting significantly better results and are at the forefront of revolutionizing performance management,” Brandon Hall Group CEO Mike Cooke said. “This report provides six critical calls for change and takes a strong stance that focusing on continuous development of employees through coaching, in-the-moment feedback and frequent performance conversations is the prescription for gaining business value for performance management.”

The report, Performance Management 2016: People Over Process (, shows that 72% of organizations surveyed rate their performance management as “not at all effective” or “somewhat effective.” The overwhelming majority of those organizations practice a process-driven model of annual goal-setting and once- or twice-a-year performance conversations. Organizations that focus on developing employees’ strengths, setting near-term employee objectives, continuous coaching and feedback, and consistent recognition for small and meaningful contributions, are getting considerably better business value from performance management, the report shows.

The report, based on a survey of about 300 organizations from more than 25 industries plus qualitative interviews and case studies, also advocates for increased use of technology, which is “10 years ahead of its actual usage.” The report notes that 30% of organizations still track performance management exclusively on paper. “Being able to take a holistic view of employee productivity is the next step in fully realized 21st century performance management,” the report says, “but it is also completely impossible with anything less than a full-automated solution.”

The report also introduces the newly updated Performance Management Business Impact Model, which identifies five levels of impact and the percentage of organizations in each level.

“While the number of organizations practicing the people-centric model of performance management is still modest, there are clear signs that organizations are beginning to embrace this more effective approach,” said Claude Werder, VP/Research Operations and co-author of the report with Principal Workforce Management Analyst Cliff Stevenson. “Half of organizations now focus on developing strengths over fixing weaknesses, which is a gain of more than 50% since our last survey. We are using this research and our frameworks and models to help clients change their performance management culture, and the report provides two examples of major companies that have done so and have experienced tremendous benefit.”

About Brandon Hall Group:
For additional information about this research or other Brandon Hall Group products, contact CEO Mike Cooke: (561) 306-3576 or mike.cooke(at)brandonhall(dot)com.

Brandon Hall Group is a HCM research and advisory services firm that provides insights around key performance areas, including Learning and Development, Talent Management, Leadership Development, Talent Acquisition and HR/Workforce Management.

With more than 10,000 clients globally and 20 years of delivering world-class research and advisory services, Brandon Hall Group is focused on developing research that drives performance in emerging and large organizations, and provides strategic insights for executives and practitioners responsible for growth and business results.

At the core of our offerings is a Membership Program that combines research, benchmarking and unlimited access to data and analysts. The Membership Program offers insights and best practices to enable executives and practitioners to make the right decisions about people, processes, and systems, coalesced with analyst advisory services which aim to put the research into action in a way that is practical and efficient. ###

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