A 2009 Watson Wyatt  survey of HR executives, representing just under 150 companies, reveals that “Companies have done what they can in terms of using layoffs, hiring freezes and salary freezes to combat the recession. Some are now turning to other measures like reducing hours and in some cases, reducing salaries.” If the results of this survey can be taken as an indicator that things are stabilizing somewhat in many companies, then an intensified focus on building profitability will naturally follow.   

For some companies, doing business in an uncertain environment will require new thinking. Rita Gunter McGrath and Ian C MacMillan of MIT Sloan Management write “Many leaders of mature organizations don't have the right mind-set or practices to help their organizations survive.” Thus, the skills necessary to succeed today may differ from those needed in the past.

Futurist and author, Dr. James Canton, predicts that, worldwide trends in 2009 will include:

“Managing Complexity”
“High Agility Enterprise”
“Global Connectivity”
“Blended Reality”
“Strategic Vision: Future Readiness”

Other predictions relate to security, sustainability, healthcare, urbanization and risk.

At a most basic level, these complexities will require that our performance management processes are exceptional. Performance management communication must be two-way, must focus on the right things, must take place in a non-threatening environment and must always be based upon the goal of improving business success. The ability to quickly communicate strategic changes and make the relevant changes to goals, objectives and development plans is non-negotiable. Performance conversations need to take place whenever and wherever they will provide benefit.

In the 1997 book The Drucker Foundation: The Leader of the Future, Frances Hesselbein, Marshall Goldsmith and Richard Beckhard predict that “The effective leader of the future will consistently ask - to receive feedback and to solicit new ideas.” This idea remains relevant today and demonstrates the value of employee involvement in the performance dialogue.

Now is the time to make sure that our performance management processes are the best they can be.

References:

Canton, James and Institute for Global Futures℠. “Global Trends Report 2009.” [www.globalfuturist.com]. Dr. James Canton and Institute for Global Futures. 1990-2008.

Dougherty, Carter. “E.U. Decline Steep: But Is the Worst Over?” The New York Times [www.nytimes.com]. May 15, 2009.

Goodman, Peter S. “Free Fall’s Over, but Where Are We Landing?” The New York Times [www.nytimes.com]. May 9, 2009.

Gunterh McGrath, Rita and Ian C. MacMillan. “How to rethink your business in bad times.” FP Executive [www.financialpost.com]. May 11, 2009.

Hesselbein, Frances, Marshall Goldsmith and Richard Beckhard. “Ask, Learn, Follow Up and Grow.” Marshall Goldsmith Library [www.marshallgoldsmithlibrary.com]. 1997.

Watson Wyatt Worldwide. “Effect of the Economic Crisis on HR Programs.” [www.watsonwyatt.com]. April 2009.