Lean Deployment - Managing Performance

Performance – “Accomplishment” or “Achievement”

Performance appraisal methodologies are constantly under pressure in the best of circumstances. During the stresses of difficult business environments, they are more difficult with less time available, traditional factors of success skewed by the crisis, and the impact of a poor evaluation resulting in potential job loss.

The associate being evaluated questions the criteria for the factors of performance. The performance evaluation is utilized to determine merited salary increases and in a downturn the retention of the position. Normally given once a year, the timeliness is called into question. The supervisor evaluator may not be trained in evaluation of the work or not gifted at communication.

Lean organization struggle with performance evaluation. A lean organization thrives in an environment of continuous improvement. The organization needs a process to evaluate the human capital both as individuals as well as a team. The very nature of constantly improving process renders the traditional once a year model based on behaviors obsolete and counterproductive.

• Lean tools need to be understood. That knowledge or understanding should be a component of every individual’s evaluation. A preferred methodology to capture this performance is to recognize education and training achieved in the use of the tools through a certification process. The colored belts of the Six Sigma process or Champion certifications of lean systems should be recognized.

• Elimination of waste from the process remains the cornerstone of continuous improvement. Recognition of participation and leadership of kaizen events should be recognized during the evaluation process.

• The individual and team evaluation should be fact based with data utilized to determine relative levels of success. A formal presentation of each kaizen should be reported out to supervision and senior management, characterized by achievements, improvements, and further actions.

• The evaluation should be focused on improvement and involve all interactions associated with individual and team performance. Supervisor, peer, and subordinate evaluation of leadership, communication, and team dynamic, and behaviors should be components of the evaluation.

• The gathering of the fact based data should be once a quarter at a minimum, when the business results are gathered. Team and individual data noted using the team business results as the basis. Both the supervisor and the associate are responsible for contributing separately into the data pool, so performance gaps can be identified early and corrected.

• The 360 feedback should be twice a year so improvement can be made and corrective actions identified. Expectations between the supervisor and associate should be established in a fact based plan. Tie both group and individual improvements into the evaluation focused on the organization’s objectives.

• The supervisor’s ability to manage the performance evaluation process should be a key component of his/her evaluation along with measurements of team success.

A lean organization’s performance evaluation system should:

Eliminate an evaluation process that does not center around fact based outcomes and behaviors. Gather the data throughout the year as a matter of standard work to eliminate as much of the bias and emotion of the situation.

Provide a structure for performance evaluation tied directly to the business objectives for the team as well as the individuals. Provide timely feedback on behaviors and results that are helpful or harmful to achieving those results.

Motivate all the participants in the evaluation process to embrace the continuous improvement of the associate with as much enthusiasm as improving the flow of work through the organization. People are motivated when they see their efforts as resulting in success.

Develop the performance evaluation process to be timely and complete. Define success factually and evaluate the individual’s efforts at contributing to the success. Bring all the evaluators of performance together in a 360 evaluation.

Envision a comprehensive evaluation system where the human capital appreciates in value to the organization through a fact based continual improvement process.

My final thought: Spend as much or more energy integrating the associate evaluation process into your organization as the business system. People are the key to sustained competitive advantage.