Three ways to make a Performance Management system change-friendly

September 4 2013
Performance review systems can be great, or not so great. They can be encouraging, or punitive. We’ve noted on a post on our Gamechange site about the negative impact of Microsoft’s punitive “stack ranking” performance management system, which by ranking all employees along a bell curve, did more to destroy the company’s culture than anything else.
So can a performance management system not only be good, but also ‘change-friendly”?

A story (link below) says yes – if it incorporates three key elements – however the three key elements noted are simple:

  1. Focus on skills needed to be successful in the future, not just the traditional job descriptions and skills that are needed for the current job.
  2. Set clear performance goals, both short-term and long-term.
  3. Reward failure, or at least don’t punish it – build in the concept of ‘good failures’ to encourage innovation.

More here  (link to external site at