Case Study Summary: Creating a Performance Management System that Works
Driving efficiency and improving the effectiveness of performance management at Pulse Solutions
Posted on 08-18-2020, Read Time: - Min
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Overview
In this case study, HR.com’s HR Research Institute looked at how the company Pulse Solutions adapted a new system in order to improve performance management.
Pulse Solutions was struggling with employee performance management and reviews. In some ways, the organization faced a problem common to most firms. Previous research conducted by the HR Research Institute found that although the majority of organizations have performance management processes, few appear to be generating effective results. In fact, just 30% of HR professionals view their performance management systems as being effective at helping meet organizational goals. Moreover, only 28% believe that, to a high or very high degree, their performance management processes result in improved employee performance.1
In other ways, of course, Pulse Solutions faced problems especially prevalent among globally distributed organizations that conduct a lot of project-based work. For instance, Pulse Solutions found it can be difficult to keep track of individual performance when managers, developers, and others shift from project to project over extended periods of time.
The managers at Pulse Solutions sought to provide more timely performance feedback to employees. Moreover, they didn’t want to focus only on corrective feedback. Pulse Solutions also wanted to acknowledge employee successes throughout the year, something they previously did infrequently and sporadically.
Pulse Solutions was struggling with employee performance management and reviews. In some ways, the organization faced a problem common to most firms. Previous research conducted by the HR Research Institute found that although the majority of organizations have performance management processes, few appear to be generating effective results. In fact, just 30% of HR professionals view their performance management systems as being effective at helping meet organizational goals. Moreover, only 28% believe that, to a high or very high degree, their performance management processes result in improved employee performance.1
In other ways, of course, Pulse Solutions faced problems especially prevalent among globally distributed organizations that conduct a lot of project-based work. For instance, Pulse Solutions found it can be difficult to keep track of individual performance when managers, developers, and others shift from project to project over extended periods of time.
The managers at Pulse Solutions sought to provide more timely performance feedback to employees. Moreover, they didn’t want to focus only on corrective feedback. Pulse Solutions also wanted to acknowledge employee successes throughout the year, something they previously did infrequently and sporadically.
Change/Solution Selection
During the course of their evaluation, the team compared various options. They found multiple systems with useful features and functionality, but, when it was all said and done, they selected AssessTEAM. Although Pulse Solutions had various reasons for choosing this system, the top three were:
- Competitive price
- Simplicity of implementation, including 360-degree support
- Ease of use (e.g., personal logins, online dashboards, and a mobile app)
Results
Since acquiring its new system, Pulse Solutions has been through multiple review cycles, and the new performance management system is now broadly utilized. With the AssessTEAM application, Pulse Solutions has been able to change their system in various ways.
- It is able to deliver formal performance reviews twice a year because the system is more structured and easier to access than previous systems and processes.
- The template feature within the AssessTEAM technology allows the Pulse Solutions management team to easily organize employees by goals and groups.
- Participation rates are higher because managers can use their portal logins to view team and individual reports on demand.
- There are now streamlined communications between managers and employees about performance expectations, projects, and goals.
- The performance management process for remote and on-the-move employees is also streamlined, which contributes to better overall management, results, and visibility of successes and issues.
- Performance incentives are more transparent under the AssessTEAM solution. Pulse Solutions uses both dynamic and fixed incentives for employees.
Conclusion
HR.com’s research indicates that more frequent performance conversations between managers and employees tend to produce better results than systems that only include yearly reviews. The Pulse Solutions experience seems to support this finding. Its legacy annual review process was cumbersome, created tension between employees and managers, and had low participation rates. In contrast, when Pulse Solutions shifted to more structured, user-friendly and frequent performance conversations, the performance management process became leaner and more efficient, diffused tension between employees and managers, and produced better results.
One important lesson to be learned is that timely conversations about performance can produce superior performance. By meeting more regularly, Pulse Solutions managers and employees can identify problems in real-time and implement timely corrective actions.
To learn more about creating a performance management system that works, we invite you to read the full case study.
One important lesson to be learned is that timely conversations about performance can produce superior performance. By meeting more regularly, Pulse Solutions managers and employees can identify problems in real-time and implement timely corrective actions.
To learn more about creating a performance management system that works, we invite you to read the full case study.
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1 HR Research Institute. (2019, July). The State of Performance Management 2019. Retrieved from
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