Reinventing Performance Management Processes Won’t Unlock Human Performance. Here’s What Will.

🔷 Executive Summary:

Traditional performance management is not enough. Organizations need a human performance strategy that aligns business and human outcomes, led by the C-suite and embedded into the daily rhythm of work. This strategy should reimagine organizational design, manager-employee interactions, workforce practices, and technology integration. Exemplars like McLaren, Roche, and AXA show that engineering human performance drives real business results—when wellbeing, learning, data, and technology are aligned with strategy.

🔷 Key Components of a Human Performance Strategy:

1. Define a Human Performance North Star

• Move from episodic performance evaluations to continuous performance enablement.
• Requires top-down leadership alignment to set vision, outcomes, and pathways.
• Example: Rolls-Royce CEO set a bold performance expectation that cascaded across the enterprise.

2. Create a Human Performance Culture & Organizational Design

• Culture must equally value business performance and human wellbeing.
• Example: McLaren Racing connects car performance directly to team wellbeing—providing access to physical and mental health services across the organization.
• Research shows mature org design capabilities help firms respond to change 5x more effectively.

📌 Insight: Engineering performance requires systemic shifts in design, not just culture slogans.

3. Improve Manager and Team Connections

• Managers need training, coaching skills, and communities of practice to give real-time feedback.
• Example: Standard Chartered built a development and accreditation program focusing on trust and coaching.
• Toxic team dynamics (as shown by the Rotterdam study) can derail high potential teams. A single negative member can reduce effectiveness by 30–40%.

📌 Insight: Performance is collective and social. Equip managers and teams to co-create success.

4. Redesign Workforce Practices for Impact

• Move beyond compliance-based practices to human-centric, outcome-driven ones.
• Example:

📌 Insight: HR must co-design practices with employees—not for them—to unlock potential.

5. Leverage Technology to Engineer Performance

• Use AI, analytics, and wearable data for real-time feedback and performance visibility.
• Example:

📌 Insight: Shift from retrospective reviews to real-time coaching and decision-making support.

🔷 Strategic Implications:

PillarStrategic OutcomeHuman-Centered Org DesignAdaptive, resilient structures that scale performanceManager Capability BuildingContinuous growth and career alignmentTechnology IntegrationReal-time learning loops and feedbackPersonalized Workforce PracticesHigh engagement, low attrition, better ROI on talent

🔷 Recommended Actions for Leaders:

1. Assess current performance management systems for alignment with real-time work and feedback needs.
2. Develop a performance enablement strategy with clear C-suite sponsorship.
3. Redesign jobs, teams, and workflows to embed wellbeing, feedback, and learning opportunities.
4. Invest in manager capability building, not just through training, but social learning and coaching.
5. Use data ethically to detect early signs of burnout, performance risk, and disengagement.
6. Benchmark and iterate—use examples like AXA, Roche, McLaren as inspiration, not blueprints.