Our Approach

What is Continuous Performance Management?

The latest book of John Doerr, Measure What Matters is already a New York Times bestseller, and it’s not a surprise. Not because Doerr is the legendary director of the Venture Capital Firm Kleiner Perkins – and have directed venture capital funding to some of the most successful technology companies in the world (including Compaq, Netscape, Symantec, Sun Microsystems, drugstore.com, Amazon.com, Intuit, Macromedia, and Google) but because in it he shares the two secrets behind many of the successful businesses he has invested in and helped build over the years. His secret is that OKRs and CFRs are, in fact, what matters most:

  • OKR stands for Objectives and Key Results; where “O” is for objective and is what the business wants to achieve. “KR” is for the key results and is what the business needs to see in each specific time period in order to achieve the objective.
  • CFR stands for Conversations, Feedback and Recognition. These elements, along with OKRs, are foundational to the process of Continuous Performance Management (™) — and is how each employee in your workforce can be motivated to achieve today’s goals and to develop their skills to meet tomorrow’s challenges. Continuous Performance Management replaces the universally loathed and ineffective annual performance review with a valuable, continuous process that actually works for the organization.

OKRs + CFRs = Continuous Performance Management

Ideal Continuous Performance Management Cycle

Why Continuous Performance Management?

Man­age­ment thought lead­ers such as the CEB have long been advo­cat­ing that per­for­mance man­age­ment should be part of man­agers’ every­day role and that once or twice a year appraisals are not an effec­tive use of time. But it’s no longer just aca­d­e­mics who think this. 95% of man­agers are not sat­is­fied with their organisation’s annu­al per­for­mance process and 75% of employ­ees see it as unfair. Anoth­er study has found that only 8% of com­pa­nies believe that their tra­di­tion­al per­for­mance man­age­ment process dri­ves busi­ness value.
In con­trast to this, research has found that over 50% of com­pa­nies where goals are reviewed each month are in the top quar­tile in terms of finan­cial per­for­mance, where­as only 24% of com­pa­nies where goals are reviewed once a year made it into the same brack­et. Sim­i­lar­ly fre­quent feed­back is now being labelled the ​‘killer app’, hav­ing been shown to boost per­for­mance by up to 39%. A study by Gallup has also found that employ­ees whose man­agers hold reg­u­lar one-to-ones with them are almost 3 times as like­ly to be engaged.

The role of a software in Continuous Performance Management

To be effec­tive, con­tin­u­ous per­for­mance man­age­ment needs to be col­lab­o­ra­tive, fre­quent and take place in real-time rather than ret­ro­spec­tive­ly. It also needs to be mon­i­tored to ensure it is being car­ried out effec­tive­ly. A continuous performance management software aids this by enabling:

  • Objec­tives to be set col­lab­o­ra­tive­ly, aligned with organ­i­sa­tion­al goals and reg­u­lar­ly updated
  • Action points from 1-1 Meetings to be cap­tured and fol­lowed up on, rather than being not­ed down in a book and for­got­ten about
  • Feed­back to be giv­en ​‘in-the-moment’ rather than wait­ing until the next one-to-one
  • Progress and obsta­cles to be cap­tured as they happen
  • Reminders to be sent auto­mat­i­cal­ly to those who have not had a check-in or giv­en feed­back recently
  • HR to have vis­i­bil­i­ty of how often check-ins are tak­ing place across the organ­i­sa­tion and how fre­quent­ly feed­back is being given
  • HR to col­late per­for­mance and tal­ent data with­out hav­ing to car­ry out for­mal appraisals