At Incept, we believe effective performance management is the key to creating a team that is constantly learning and improving. Annual reviews that primarily focus on salary adjustments have become the norm, while the pace of business continues to make that model ineffective in providing clarity for employees on what success looks like or providing opportunities for growth.
Incept’s model is different.
Clearly Defining Success Makes A Difference
Here, all of management participates in a performance management process that includes 6 annual success description periods of 2 months each. For each 60-day period, the individual and manager meet to agree on the various outcomes that need to be met during the 60-day period for the employee to be considered successful. It is important to note these are SMART (specific, measurable, action-oriented, realistic, and time-based) outcomes that remove ambiguity for the employee and clearly explain how they will be evaluated. 5-7 items are awarded a point value that totals 30 points, with the achievement of 25 of those points being agreed to have “Met Expectations” during that Success Description period.
Success Requires Support
Just as critical, the employee has the opportunity to identify the specific items they need from their manager to achieve the level of performance required of them. That may include budget approval for items, weekly meetings, feedback on items within x days, etc. This enforces collaboration and shared accountability.
Within two weeks of the end of each Success Description period, EVERY employee has a formal one-on-one meeting with his or her manager to complete his or her performance management review. That reviews consists of the following:
- Reviewing the employee’s Success Description points earned during the period
- Points earned by the manager during the period
- Each employee rating themselves and their manager on a scale of 1-5 on how well they represent each of the company values
- The manager rating themselves and the employee on a scale of 1-5 on how well they represent each of the company values
- Any discrepancy in either direction is discussed
The employee then receives one of three overall grades:
- Below expectations for the period
- Meets expectations for the period
- Exceeds expectations for the period
The accumulation of the 6 scores is what dictates someone’s annual salary increase.
Incept Succeeds When Employees Succeed
With a formal process designed to frequently review and discuss an employees’ performance, we accomplish three significant goals:
- Make the performance review about discussing someone’s skills and ways to impact the organization instead of solely focusing on financial compensation (which often happens in an annual review format)
- Create a culture of accountability, where an employee clearly owns their own goals and results and uses their boss as an advocate to help reach them not as a scapegoat to place blame on if desired results aren’t achieved
- Create an organizational structure that can react quickly to support new initiatives, scale for clients, or adjust to market demands
What do you like most about Incept’s performance management system?