Even before COVID-19, advancements in terms of improving PMS (Performance Management Systems) and measuring productivity were well underway. Organisations, all around the world, we’re rethinking and incorporating progressive changes in PMS, enabled mostly using technology but at a decelerated pace. A few prominent changes which enabled the new age PMS and productivity measurement tools were the use of analytics to create scorecards and dashboards, feedback of individuals through a more inclusive approach, integration of systems to ensure a single source of truth to capture performance data and doing away with the bell curve. As seen, innovation in PMS was, and still is underway but the current crisis has pushed organisations to think afresh and think quickly.
As organisations around the world are grappling with a cash crunch, erosion of demand, disruption in supply chain and production; leaders are forced to wear a cost-conscious lens where they are going back to the drawing board to redefine their workforce and come up with a solution to do more with less. Leaders today need to innovate and challenge the old ways of working to ensure practices are suited to current times.
The biggest delta is how the roles are rapidly evolving and subsequently how the composition of the workforce is changing. For example, roles are either getting enhanced or diluted, more jobs are shifting to the WFH environment and we are seeing a shift towards embracing and making use of the GIG workforce etc. Further, organisations are adopting a liquid and dynamic approach to working as compared to traditional solid roles to enhance productivity and reduce cost. All these changes in workforce landscaping require a relook at existing policies, processes, infrastructure, and culture.
To manage the new workforce, it is obvious that the performance management system and productivity measurements will have to change and there is a need for organisations to innovate. Additionally, it is important to note that the philosophy and definition of P&P is not changing, but elements of PMS such as goal assessment, conversation & feedback, recalibration of linkage to variable pay, etc. need to be rethought and aligned to new ways of working. A few questions that organizations need to address are: how do we become more outcome-oriented?, how do we make KRA’s business and system-driven?, what
are the ways to enable continuous check-ins and feedback conversation?, is there a greater need to lean towards variable pay?, how new productivity tools can add to business result through proactive developmental feedback?
The purpose of this paper is to highlight changes in the performance management system and productivity measurement tools keeping the current situation in mind and beyond given that the organisations are undergoing a transformation in how their workforce is shaped. The paper is compiled after KPMG in India gathered information on PMS and productivity measures from more than 30 organisations around the world including regions like U.K., South Africa etc.