Take a peek at the Financial Times article by Lucy Kellaway entitled “Why does no one notice I’m coasting?”

At the beginning of the article a 41 year old marketing executive writes:

•       “I have been in marketing for 15 years and have always worked really hard and done well. A year ago we bought a derelict house which has taken up a lot of my time, with the result that the effort I put into my job has gone down by half. To my amazement, nobody at work has noticed. My latest appraisal was my best yet.”

Readers generally attribute this situation to improved individual efficiency or a number of other factors; however, Kellaway suspects that no-one has noticed “because the appraisal process is dodgy.” Perhaps this employee truly is working more effectively due to her extensive experience, or she was previously contributing at such a high level that her current level of performance remains adequate. Suppose, however, that she is slacking at work. What are the implications?

Ripple effects could include:

-the employee (who was previously a top performer) could become bored and move on to a more challenging position at another company

-colleagues may observe the employee’s declining effort and decide that they also can reduce their effort at work

-employee satisfaction may drop if colleagues become angry or frustrated or feel the situation is unfair

-business opportunities will be lost

Admittedly, there are times in everyone’s lives during which overtime and extra dedication towards a job are more or less possible, but if we multiply the effects of “coasting” times a number of employees...well, you get the idea.

Beyond the distraction of the “derelict” house, the employee could also be coasting because she no longer finds her work challenging and interesting. A well functioning performance management system would uncover this.

Bersin and Associates research shows the ROI of a performance management systems to be “.5 to 2 times the investment” when it comes to efficiency and compliance, 2 to 4 times the return in relation to process improvement and 5 to 10 times when it comes to business transformation. If, as Kellaway suggests, “dodgy” performance appraisals are behind the scenario described, then this story acts as just another reminder of the importance of a solid performance management processes.

References:

Bersin & Associates. Building the Business Case for Performance Management Systems. What Works® Talent Management Newsletter, April 2008.

Kellaway, Lucy. “Why does no one notice I’m coasting?” Financial Times [www.ft.com]. April 10, 2008.