Independent opinion research by a management consulting firm has found that even when business leaders are aware of best practices, they don’t always follow them.
64% of business leaders believe that individual performance management drives business performance. 43% believe that it contributes to the bottom line.
Given the widespread acceptance of performance management’s merits, you would expect to see executives embrace the process. But that’s not the case.
Hay Group surveyed decision-makers from more than 1,600 major firms across 4 continents. Despite 20 years of research attesting to the benefits of aligning performance management to corporate strategy and culture, they found that three quarters of firms still fail to do so.
Why do managers ignore the strategies that they know are vital to success?
The leaders surveyed by Hay Group reported an uneasiness with asking too much of their people. Roughly 50% thought that pushing productivity could result in employee disengagement, staff turnover, absenteeism, customer dissatisfaction, damage to industrial relations, and internal conflict. 44% reported that their staff are already stretched too thin.
Only the most innovative and best managed companies can expect to see greater-than-average growth. Such growth depends on quality performances from people across the firm.
For the 2011 fiscal year, business leaders in developed countries targeted an average of 5% growth—a pace far greater than the International Monetary Fund’s projected 2.5%. While some firms will no doubt beat economic forecasts, it would be naive to expect this to be the rule rather than the exception.
Your company won’t grow without a solid performance from all of your people. Accepting and pursuing the best managerial practices is an important step that will help you get that performance.