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2016-01-12 06:23:53
Jon YoungerNorm Smallwood
January 11, 2016
We see big changes ahead in performance management. Organizations like GE and
Accenture are experimenting with new approaches to that old shibboleth: the
annual performance review. And far-thinking companies are replacing the annual
rating and ranking process with more-timely capture of critical incidents and
authentic spot feedback.
But one important and growing population in organizations isn t benefiting from
this feedback renaissance. They re the external professionals your organization
increasingly counts on: freelancers, gigsters, advisers, and consultants, the
people we call agile talent in our new book. In our research, performance
management is the weakest link in managing and engaging agile talent and in
gaining the greatest productivity from your external talent investment.
According to Deloitte, external workers may represent 30% or more of your
organizations true workforce. Freelancers Union reports that as much as 40% of
the U.S. workforce views themselves as freelancers. And our research found that
over 50% of leaders fully expect agile talent to increase as a percentage of
total employees. Why? Certainly, one goal is cost efficiency. But the more
important drivers are speed, flexibility, and innovation.
Most organizations, however, are not set up to benefit from their increased
investment in agile talent. Research by PMI describes most problems in project
performance as being the result of alignment issues. Our findings concur. And
the alignment gap is greatest when it comes to performance management.
What can we do to close the performance alignment gap? Our research suggests
six important steps:
Share context
Too often agile talent reports that they are excluded from critical meetings
and discussions that would provide helpful and sometimes essential context
for their work. Our data show that both agile talent and their client
organizations miss critical opportunities to provide a thorough orientation to
the work and its importance.
Measure more than cost, schedule, and quality
Defining the usual measures isn t enough. Agile talent wants to know the
nuances, and they re particularly concerned that issues like cultural fit or
other soft factors are often left unsaid or undefined until problems arise,
creating additional cost or difficulty and enabling preventable conflict with
internal colleagues.
Encourage agile talent to communicate concerns before problems bloom
To resolve problems before they affect a project, organizational leaders must
sincerely encourage agile talent to communicate concerns. Our interviews
reinforce the importance of regular review and a well-defined agenda for
review. Rapport, the secret sauce of open discussion, blooms when agile talent
is regularly invited and expected to honestly discuss potential problems.
Demonstrate two-way feedback
But encouragement isn t enough. When we ask agile talent whether their client
organizations really want feedback, we often see more teeth-gnashing than
affirmation. We learned that boundaries are important in two-way feedback for
example, We talk about issues, not individuals, or what some people call the
no gossip rule.
Make sure the right managers are supervising your agile talent
Is your organization assigning the right professionals and managers to
supervise agile talent and their work? We heard time and again from external
experts about the importance of both a performance and a developmental
mind-set. Managers who are performance-oriented but not developmental may
assess well but not provide effective feedback and coaching. Managers who focus
on development more than performance may miss when it comes to frank, tough
assessments. Good managers of agile talent just like good managers of FTEs
do both.
Acknowledge excellence and share the news
Finally, agile talent is just as motivated by appreciation and recognition as
your full-time employees more so, in fact, given that client satisfaction is
the basis for their career success. Whether through something as simple as
public praise or as personal as sending a dozen flowers and a handwritten
letter, reinforce with acknowledgement and thanks. And let colleagues know.
Agile talent is growing and here to stay, and organizational leaders are
increasingly turning to external experts to provide the speed, flexibility, and
innovation they need and to more cost-effectively plan initiatives. But
organizations will only gain the full benefits they seek if they recognize that
their agile talent needs strong performance management support too.
Jon Younger is Managing Partner of the Agile Talent Collaborative and the
author of several books in HR and talent management, including Agile Talent
(HBR Press, 2016).
Norm Smallwood is co-founder of The RBL Group, a strategic HR and leadership
systems advisory firm, and the coauthor of several books including Agile Talent
(HBR Press, 2016). He is a partner in the Agile Talent Collaborative.