Not only do we need to set up a system where the employee knows what is expected of them, we need them to understand and provide feedback on the results. They need to be empowered.

Progressive organizations are embedding the performance measures into the position descriptions using an outcome-based approach. The quantitative performance measures empower employees to manage their own performance and report back to the manager/supervisor- obviously with the necessary checks and balances. It applies from the CEO or even Board right down through the organization e.g. delivery driver which can be by shift or 6 weeks whatever.

This human capital management approach provides the definition of expectations in a quantitative way, empowers the employee, encourages motivation & innovation and rewards the employee for effort above and beyond the normal expectations (position target performance measures). The organization also knows they are getting a positive return on the performance pay – this is a win win situation.

With the performance envelopes in place the employees can interpret the data as quickly as the supervisor. As an example, in 1990’s this was introduced at Kellogg Australia and, just taking the Cooking Team, they could not only tell you whether the cook was in specification, they could also tell the supervisor why it was in spec. or tending towards the “out” and what needed doing to fix it. The supervisors moved to another site where they receiving feedback but more importantly spent time focusing on their own performance measures (which included an accumulation of the teams at the plant).

This empowerment was a new concept in the 1990’s but today it must be the approach we adopt if we are to become a progressive organization. We have to utilize and trust the workers within the outcome-based competency’s we have identified the position needs and at the standard set by the performance measures. However we must also ensure our people are competent and that they remain competent as the position grows and or changes.

We buy our plant and get what we can out of it, maintain it and let it do what we bought it to do – we do not get out and push the truck up the hill (if we had to we got the specification wrong or we failed to maintain it properly). Let the workforce get on and do what we acquired them to do.

If you have any questions contact Max.

Max Underhill

Managing Director

Maxumise Consulting Pty Limited