Strange - One Size Does Not Fit All: SMB Performance Appraisals
2 likes232 views
This document discusses performance appraisals for small and medium-sized businesses (SMBs) and identifies some key differences from large corporate processes. It recommends that SMBs provide complete job descriptions, allow for multi-role evaluations, keep ongoing notes rather than annual reviews, and simplify systems to better suit closer interpersonal environments in SMBs. The goal is to make appraisals more accurate, less personal, and better support fluctuating job roles within SMBs.
Strange - One Size Does Not Fit All: SMB Performance Appraisals
- 1. One Size Does Not Fit All - SMB Performance Appraisals Greg Strange FireWave Consulting, SVP, Product Strategy Objectives: •Be better able to assess friction points in the process. •Better manage fluctuating and expanding job roles within a single appraisal cycle. •Tailor the performance appraisal process to small and mid- sized business based on closer interpersonal environments.
- 2. Purpose of the Appraisal • Set expectations • Conform behaviors • Provide feedback • Diagnose operational problems • Identify top/low performers • Identify training needs
- 3. Corporate vs. SMB Corporate Process SMB Forms • Multi-person, • Single Company- Multi-phase wide Form Appraisal Process • Self & Manager • Multi-department Rating Responsibility • Relationship to • Information Manager Dissemination • Highly Personal • Impersonal
- 4. Why the Difference? • Rule of 8s • Dunbar’s Number • Larger Organism, Smaller Cells • Decision Makers Closer
- 5. Purpose In SMB • Document, document, document • Head off serious problems in performance • Help make compensation less personal • Anchor “pro forma” discussions • Career paths and succession planning can be poison
- 6. Friction Points • Incomplete, inaccurate job descriptions • Multi-role jobs not supported • 3 – 5 data points max • Personal goals, too?!? • Today is yesterday is the beginning • We don’t take criticism very well • Arbitration
- 7. What’s an SMB to Do? • Provide complete and descriptive job descriptions • List all roles but combine competencies and skills • Job weightings independent of job descriptions • Keep notes and encourage performance all year long • Don’t forget appraisals are known
- 8. Let’s All Promise Each Other Something • Don’t use a scale with more than 4 options • Don’t rate the kitchen sink • Don’t change in the middle of the process • Don’t shut out the employee • Don’t do codified peer review • Don’t focus on the top 75% • For new metrics, focus on the middle 50%
- 9. Appraise the Appraisal • Take the temperature of the process every year • Let employees give input on next year’s metrics • Try varying intervals, rollups, etc. provisionally • Compare merit payouts to more than one year’s scores
- 10. Summary • Appraisals are fundamentally different for small business • Documentation • Merit Increase Validity • Find a simpler system to help automate and manage appraisals