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Performance Management

How to develop a robust performance management strategy in 2023

Image of a manager having a good conversation with an employee

This guide aims to give you the knowledge to create a performance management culture and solves problems associated with managing employees’ work performances.

A high-performance culture that promotes career development for individual employees, can seem like a distant dream, or a Utopia. 

In this blog, you'll learn about the characteristics of effective performance management systems and the stages involved. By the end you’ll be able to develop your own robust strategy from start to finish.  But first, let’s define performance management…

What is performance management?

Performance management is not just about ticking boxes or annual reviews; it's a continuous process that aligns individual and team efforts with organisational goals. 

The Society for Human Resource Management defines performance management as a holistic approach to managing and enhancing employee performance.

[17 effective performance management review templates for 2023]

A continuous approach 

Traditional appraisals have evolved into ongoing feedback systems that focus on coaching, development, and constant improvement. 

Rather than being confined to once-a-year evaluations, modern performance management embraces constant dialogue and coaching. 

This enables individuals to understand their roles better, identify areas for improvement promptly, and feel valued by their organisation.

This continuous approach promotes transparency in organisational processes while fostering an environment where everyone can contribute meaningfully towards achieving shared objectives. 

By making performance management an integral part of everyday operations rather than an isolated event, organisations can enhance productivity levels while improving overall job satisfaction among staff members.

Data-driven decisions

Leveraging data analytics can help HR managers gain insights into employee engagement levels, productivity rates, skill gaps, etc., driving informed decision-making processes.

Digital tools

Effective performance management requires clarity in expectations, fairness in evaluations, consistency across departments, and alignment with organisational values.

Performance management software simplifies goal tracking while automated feedback systems ensure timely recognition of employees' efforts. Eletive provides all the necessary features needed for effective performance management. 

A successful performance management strategy not only enhances productivity, but also increases employee commitment, resulting in improved business outcomes.

Understanding this concept is vital for any organisation aiming for success.

Performance management vs performance appraisals: what's the difference?

Performance apprisals:

  • Purpose: Assess past performances and focuses on shortcomings

  • Approach: Retrospective

  • Frequency: Once per year

Performance management:

  • Purpose: Focuses on future growth by identifying areas for improvement and providing necessary support

  • Approach: Forward-looking

  • Frequency: Continuous with pulse surveys

Why performance management matters

Performance management is the backbone of effective communication, clarifying expectations, and supporting talent development within an organisation.

Bridging communication gaps

Open lines of communication are vital for any organisation's smooth functioning. 

Performance management aids in bridging these gaps by facilitating transparent conversations between managers and team members about job responsibilities, targets, and performance standards, leading to fewer misunderstandings.

Talent development & retention

Research shows that opportunities for learning and growth significantly impact employee retention rates. 

A robust performance management system can identify skill gaps among employees early on, allowing HR Managers to create targeted training programs or provide additional resources needed for their professional development.

Nurturing high-performers

Identifying high-performers becomes easier with an efficient performance management process in place. Recognising such individuals not only boosts morale but also creates a competitive environment where everyone strives to perform at their best.

Engaged emplyee

To achieve these results, your performance management strategy should align with your organisation's values and strategic objectives. It needs continuous refinement based on insights from data analytics provided by tools like our performance measurement software.

Developing a high-performance management strategy isn't just about staying relevant - it's about thriving amidst change.

Effective performance management: what makes it tick?

Effective performance management is all about clarity, fairness, consistency, alignment, feedback, and accountability. Confused? Let's break it down.


Clear communication of individual and team goals is essential. Everyone should know what's expected of them and how their efforts contribute to the overall organisational objectives.


Unbiased evaluation processes ensure all employees are assessed fairly based on their performance rather than personal biases or favouritism.


Consistent processes and criteria for evaluating performance promote a sense of equality among employees, fostering trust in the system.


Performance measures should reflect your company's core values and strategic priorities. Everyone should be striving towards the same objectives.


Regular feedback is crucial. Employees need timely insights into their strengths and areas for improvement so they can adjust their behaviour accordingly. Feedback-rich environments boost morale while encouraging continuous learning and growth.


Holding individuals responsible for achieving set targets ensures commitment towards goal attainment while promoting ownership over one's work outcomes.

Having understood the importance of accountability, it's time to apply these principles and access SHRM's toolkit for more information on managing employee performance. Check out SHRM's toolkit for more information on managing employee performance.

How to develop a performance management strategy - 12 steps

Developing a high-performance project management strategy entails several crucial steps and considerations. 

Allow us to guide you through the process…

  1. Clearly Define Objectives: Start by setting measurable performance goals that align with your organisation's objectives. This gives employees direction and purpose. You can use a performance review scale for this. It is essential to articulate the project's objectives with clarity. Take the time to identify the desired outcomes and any specific metrics or targets that need to be achieved.

  2. Break Down the Project: Divide the project into manageable tasks by creating a work breakdown structure (WBS). This breakdown will help you grasp the project's scope and define its individual components.

  3. Set Realistic Goals and Deadlines: It is important to set realistic goals and establish clear deadlines for each task and milestone. Ensure that these deadlines are achievable and align with the overall project timeline.

  4. Create a Project Schedule: Develop a project schedule that outlines the sequence of tasks, their dependencies, and the estimated duration for each. Utilise project management tools like Gantt charts or project management software to effectively visualise and manage the schedule.

  5. Assemble the Right Team: Identify the key roles and skills required for the project and select team members accordingly. Look for individuals who possess the necessary expertise and experience. Encourage clear communication and foster collaboration among team members.

  6. Communicate Effectively: Establish a robust communication plan to keep stakeholders informed about project progress, challenges, and changes. Regularly provide updates, communicate expectations, and make any necessary adjustments to ensure everyone remains well-informed.

  7. Identify and Manage Risks: Conduct a thorough risk assessment to identify potential risks that could impact project success. Develop risk mitigation strategies and contingency plans to minimise their impact. Continuously monitor and address risks throughout the project lifecycle.

  8. Monitor Progress and Performance: Regularly track project progress and performance against the defined goals and milestones. Utilise key performance indicators (KPIs) to measure progress, identify areas for improvement, and make informed decisions.

  9. Adapt and Adjust: Maintain flexibility and adaptability in the face of change. Regularly evaluate project progress and be prepared to adjust the strategy as needed. Encourage and value feedback. Regular check-ins help identify areas for improvement, celebrate successes, and keep everyone on track.HR managers can leverage technology like Eletive's suite of tools to measure employee engagement and increase team productivity. With powerful data analytics, gain actionable insights that drive continuous improvement in performance management.

  10. Embrace Continuous Learning and Improvement: Foster a culture of continuous learning and improvement within the project team. Conduct post-project reviews to evaluate successes, challenges, and lessons learned. Apply these insights to future projects to enhance performance.

  11. Utilise Project Management Methodologies: Consider leveraging established project management methodologies such as Agile, Scrum, or Lean to streamline processes, improve collaboration, and increase efficiency. Tailor these methodologies to suit your project's unique requirements.

  12. Harness Technology and Tools: Utilise project management software, collaboration platforms, and other technological tools to streamline project execution, enhance communication, and improve overall efficiency.

Remember, developing a high-performance project management strategy requires consistent effort, effective leadership, and the ability to adapt to changing circumstances. 

By following these steps and incorporating best practices, you can significantly increase the likelihood of successful project delivery.

Technology can also increase your chances of success. 

Let’s look at that in the next section…

How technology can boost performance management

Technology is the superhero that can save the day when it comes to performance management. 

With the help of innovative software and tools, HR managers can streamline processes, track goals, automate feedback systems, and leverage data analytics for continuous improvement.

The power of performance management software

Performance management software, provides a centralised platform to manage all aspects of employee performance. It offers real-time insights into individual progress towards set objectives and facilitates timely interventions if needed.

Digital tools for goal tracking

Digital tools enable transparent tracking of individual and team goals, fostering accountability by providing clear visibility into each member's contributions towards achieving shared targets. Check out this list of the best goal tracking tools to help you get started.

Automated feedback systems

Ongoing feedback is a key feature of modern performance management. 

Automated systems make this process seamless by prompting regular check-ins between managers and employees, fostering open communication channels that boost engagement levels. 

Data analytics: driving continuous improvement

Data analytics provide valuable insights into patterns that may affect productivity or morale. By analysing these trends over time, organisations can implement proactive measures to enhance overall performance. Check out this list of HR analytics examples to see how data can drive performance.

Navigating challenges with 360-degree feedback

360-degree feedback, which involves gathering input from an employee's peers, subordinates, and superiors, offers a comprehensive view of their skills, behaviours, and areas for development. This holistic approach helps overcome biases inherent in traditional appraisal methods while promoting a culture of constructive criticism within the organisation.

Picture of female manager working in front of co-workers, leading the work


Here’s a quick summary of what we discussed…

  • Performance management is crucial in the workplace.

  • Effective performance management has specific characteristics.

  • Developing a strategy involves several stages.

  • Technology can make performance management easier.

  • Implementing a successful strategy is key to achieving organisational goals.

Follow these guidelines and you'll be a performance management pro in no time!

If you’d like help with the technology part contact Eletive’s sales team. We’ll happily guide you through the process. 


What are performance management strategies?

Performance management strategies are systematic approaches to improving employee productivity, engagement, and job satisfaction. They typically involve goal setting, continuous feedback, performance appraisals, development plans and rewards.

What are the 3 R's of performance management?

The three R's of performance management refer to Recognise (identifying key behaviours for success), Record (documenting these behaviours) and Reward (acknowledging good performances).

What are the trends in performance management in 2023?

  • Continuous Performance Management

  • Real-time Feedback

  • Personalised Approach

What are the 5 Stages of performance management?

The five stages include planning work expectations, monitoring employee progress, developing capacities through training, rating overall contribution towards goals, and rewarding employees based on their performances.

When it comes to performance management, it's important to avoid personal opinions or experiences, politics and controversial topics, and unverified information or speculation.

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