Traditional Performance Management Doesn’t Drive Performance nor Engagement. What Does?

A public survey released by Deloitte (quoted by the Harvard Business Review here) more than half the executives surveyed said that their current performance management approach didn’t result in high performance or in increased employee engagement. Those surveyed are not alone – and the most recent announcement was that Accenture was getting rid of annual performance rankings and reviews. But wasn’t performance management – with all employees then rated on a bell curve – considered as a best practice for optimal organizational management? Let’s look at the drivers behind this new understanding of performance.

Accenture has 330,000 employees – and managers spend thousands of hours on getting trained on performance management and following the practice. What’s behind this huge departure from tradition, and what does it mean for the future of performance management?

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