December 2016 | Nano Tools | Leadership
Nano Tools for Leaders® are fast, effective leadership tools that you can learn and start using in less than 15 minutes — with the potential to significantly impact your success as a leader and the engagement and productivity of the people you lead.
Contributor: Peter Cappelli, PhD, George W. Taylor Professor of Management, Professor of Management; Director, Center for Human Resources, The Wharton School
Use a review system that provides feedback, holds employees accountable, and encourages talent development and retention.
The performance review is already a thing of the past at firms like IBM, OppenheimerFunds, and General Electric. In fact, Deloitte reported in 2015 that only 12 percent of the U.S. companies it surveyed were not planning to rethink their performance management systems. These firms cite compelling reasons: first, there is widespread evidence that performance reviews as traditionally practiced aren’t working. Second, they prioritize and make people liable for past behavior instead of helping them improve. And third, an important assumption underlying performance reviews, one that strongly impedes talent development, is that poor performers will never change — their behaviors are incorrectly assigned to disposition, not circumstance.
If you’re concerned about developing and retaining talent, while also holding employees accountable and helping them set and reach performance benchmarks, you might also consider an alternative to the traditional yearly review.
Nano Tools for Leaders® was conceived and developed by Deb Giffen, MCC, Director of Innovative Learning Solutions at Wharton Executive Education. It is jointly sponsored by Wharton Executive Education and Wharton’s Center for Leadership and Change Management, Wharton Professor of Management Michael Useem, Director. Nano Tools Academic Director is Professor John Paul MacDuffie, Professor of Management at the Wharton School and Director of the Program on Vehicle and Mobility Innovation (PVMI) at Wharton’s Mack Institute for Innovation Management.
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