Performance Management 3.0

The survey research summarized here illustrates how challenging performance management (PM) is within organizations. Much of the difficulty and dissatisfaction springs from poor PM process design and delivery that is still grounded in a traditional model of organizations. While incremental changes to a traditional model (PM 1.0) may buy time, the negative consequences are very present—decreased employee motivation and engagement, and a misplaced ownership of the process. While PM 2.0 goes a long way toward creating a collaborative, developmentally focused process, it does not recognize the growing expectations and requirements for greater horizontal and vertical integration.