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Holger Manske & Partner GmbH
Kurfürstendamm 22, 10719 Berlin Locate address using Google maps
Tel.: +49 (0) 30 319 80 41-0
Fax +49 (0) 30 319 80 41-23
Email: info@hmp-change.com
 
 
 
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Holger Manske & Partner GmbH
Kurfürstendamm 22, 10719 Berlin Locate address using Google maps
Tel.: +49 (0) 30 319 80 41-0
Fax +49 (0) 30 319 80 41-23
Email: info@hmp-change.com
 
 
The performance of an employee is defined by the results that an employee delivers within a specified time frame. Good performance management can improve the performance curve of an organization by 2-5% per annum. In addition to the actual results of an employee it is also important how the employee reached those results - as the total performance of an organization depends on how an employee enables the performance of his colleagues (e.g. through cooperation) and how sustainable the results are (e.g. long customer relationship vs. short term quota). Only a combination leads to superior performance in the long run:
- quantitative results per time span (e.g. quarter)
- qualitative results, ideally confirmed by external or internal customers)
- History of achievement (volatility and trend)
- Important behaviors supporting the organizational performance (e.g. cooperation)
- Other behavior that can be observed suggesting a high performance level (e.g. following guidelines)
The individual performance can be improved by motivation ("I want to perform") and enablement ("I know how to perform"). For both it is key to provide clear and correct feedback to the employee based on transparent criteria. Based on this feedback, clear objectives and next steps can be agreed. Specific measures as training, change of responsibilities, promotion or salary adjustments should be based and be fully in line with this feedback. Only then will those measures improve the employee's performance.
By shifting priorities and attention, by using support mechanisms or just by trying out a better approach, specifically the highest performing employees can further improve their performance. As a result the entire performance curve shifts to the right.   On the other hand, the main reason for the highest performing employees to leave their current job is their direct manager, even if this may not be reflected in most exit interviews. Often these leaving top talents are disappointed by a lack of support and too little career opportunities. Through better performance management this effect can be reversed: the attrition of high performing employees is reduced and therefore the overall performance curve becomes stronger over time on the right "high performing" side.
The potential of an employee is defined by his or her likely future performance in case of optimum support - no matter if for a management of functional career path. From this definition it becomes clear that the potential of an employee cannot be changed - it can only be recognized and used.
The following criteria help to determine the potential of an employee:
- History of perfoming well in a new environment or with an increased responsibility (CV
   progression, performance after promotion)
- Personality, specifically " conscientiousness" and "emotional stability" according to the "big
   five" personality factors.
- Behaviors and skills of the employee that can be observed, suggesting that the employee will
   be able to perfrom in the future in a specific responsibility
The employee potential can be used more effectively through good management. High potentials should be the main pool for promotions in both management and functional career paths. This will increase the future performance of the organization and will also reduce attrition due to the fit of employee and job. An improvement of the potential curve in an organization can only be achieved through good recruiting (hire for potential).
Potential

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An organization that outperforms and employees who realize all their potential and all their skills is the dream of most managers. Low birth rates and competition from low-cost countries demand increasing skills and value creation. Therefore, an increased focus on active performance and potential management will be a key competitive advantage over the next years:
- motivating your highest performing employees
- allow each employee to improve his or her performance
- drive personnel measures more effectively
- reduce costly and risky recruiting from external

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