In one of President Obama’s speeches on the stimulus package, he mentioned that the current situation does not call for “business as usual,” and that there is now a heightened need for transparency and accountability. Certainly things are not as they used to be. Just as Brian McDermott wrote in his HR.com blog, “Things Aren’t Likely to ‘Settle Down’.”

The lens through which we view the challenges of performance management has changed. For example, if we consider Susan Heathfield’s Top 10 Toughest Questions,  many of them take on a new relevance during current economic circumstances. According to Heathfield, the top ten challenges include “how to deal with a negative coworker,” implementing strategic planning, poorly functioning management systems, unengaged employees, “personal courage and conflict resolution at work,” goal achievement, dealing with difficult co-workers or bosses, and working efficiently as a team.

Tolerance for many of these situations is lower when economic pressures abound. Thus, there exists a strengthened need for sound performance management and follow up to ensure that employees are acting upon the agreed upon performance plan.

If we assume—as McDermott suggests—that things won’t settle down and return to normal, then spending time trying to make things fit old paradigms will stifle our ability to adapt to new conditions. Certainly, an intense focus on building alignment; defining, monitoring and refining performance expectations and goals; eliminating non-productive behavior; and improving the honesty of communication in order to improve the business are all now a top priority.

PriceWaterhouseCoopers proposes a framework to help companies weather the downturn.

References:

McDermott, Brian. “Coping with Change…Things Aren’t Likely to ‘Settle Down.’” HR.com [crm.hr.com]. February 18, 2009.

Heathfield, Susan M. “Top 10 Toughest Questions: Asked and Answered.” About.com: Human Resources [www.humanresources.about.com].

PriceWaterhouseCoopers. “Managing in a downturn: Challenge as Opportunity” [www.pwc.com]. Obtained February 22, 2009.