Maturity Model

Page 1 of 2 CUX research on the current state of organization performance management processes showed clear evidence of a maturity model to show how organizational practices progress in their sophistication. The model below describes organizations at Stage 0 as those that have not yet embraced performance management as a strategic business tool. They may conduct performance evaluations but those are likely based on subjective evaluations of people rather than their performance because there’s no formal goal setting activity to direct evaluation around the accomplishment of business results. They use paper-based forms to capture performance reviews, and final evaluations are stored in employee files in HR where they provide little value to future talent planning and development. Senior leaders in Stage 0 either do not formalize their strategic planning processes or fail to communicate strategy well to all levels in the organization, preventing people from knowing how their efforts will contribute to organizational success. At Stage 1, companies have implemented some performance management activities but there’s no consistency from one part of the organization to the next. These ad hoc efforts are typically driven by the HR organization to address salary issues rather than being driven by the CEO or senior leadership team to execute business strategy. Therefore, senior leaders do not see the value in grounding the process on a well-documented, well-communicated set of objectives. Stage 1 companies are focused on the mechanics of the process and pay little attention to driving quality in writing goal statements and improving mangers’ coaching and feedback capabilities. Organizations in Stage 2 of the maturity curve are those that are awakening to the real potential of performance management as a business tool that will support the organization’s ability to execute its plan. In many cases, the CEO directs an HR or Learning and Performance team to implement a single performance management process across the entire enterprise. These organizations often implement their processes on a technology platform so that they can improve the visibility to higher level objectives and to goals within the various levels of hierarchy. They use a cascading process so that employees are able to derive their goals from levels above them and they can see how goals roll up from the bottom and map back to the desired business outcomes. This visibility allows managers and employees to better prioritize their efforts and to stop doing work that does not add value. << Start < Prev 1 2 Next > End >>