Measuring People Performance

Organizations place increasing emphasis on measuring results--from financial success to management effectiveness and return on investment (ROI).

While most firms have become adept at defining financial and operational success, most find that the softer side of people performance is often the hardest to quantify.  Yet, employees represent the largest cost in most enterprises.  Measurement typically is focused on what was accomplished but how things are accomplished within a company is important.

Performance assessments, such as 360-degree feedback, and executive coaching have gained popularity in evaluating and improving individual behaviors and the overall levels of management engagement.  While most organizations use feedback mechanisms and outside coaches to gauge the soft side of performance, few take the time or make the effort to connect these measurements to organizational performance.

Most 360-degree feedback assessments fall under the umbrella of organizational development within the Human Resource Department....and....these professionals don't understand the connections these instruments and executive coaching have to the bottom line.  Yet, much of the power of these assessments lies in what they predict about future performance; a predictor of bottom-line success.

Source: Training+Development magazine, September 2007