Sun 12 Feb 2006

Use performance management to ensure every part of your firm is steering in the same direction, counsels Phil Jepson.
Firms want their staff to perform to the highest standard as consistently as possible. They want them doing things that help the firm succeed. This does not happen by chance. To get the best out of people you have to invest in them, motivate them and point them in the right direction. A performance management system can help you achieve this. The time and care that goes into assembling the system is a considerable investment. The implementation of the system should therefore motivate staff.

The firm has the opportunity to set out its goals and culture, and to invite its people to behave in ways that take the firm towards its goals and are consistent with its culture. It can give rewards for doing so. It has an opportunity to deal with counter-cultural behaviour or poor performance.

Most large law firms and many small firms have a formal performance management or appraisal system. Most miss the opportunity to use the system as a way of lining up the goals of individuals with the goals of the firm, and motivating individuals to achieve both.

In practice, the manager responsible for carrying out the appraisal will sit down with the appraisee once or twice a year, dust off the last appraisal and say something like, 'Let's have a look at what you promised last time and see how you've done.' In most cases neither person will have revisited the form since the last appraisal and the review of the form will either produce a pleasant surprise or a nasty shock, depending on events since then.

Objectives may also be set for individuals that bear no resemblance to the goals of the firm. The individual may be motivated but is set heading off in the wrong direction.

An effective performance management or appraisal system requires that set objectives must be consistent with the objectives of the organisation as a whole. It goes without saying that in order to do this the organisation needs to know what its goals and objectives are. The goals need consistency and measurability.

Appraisal, review and feedback must be a constant process rather than an annual event. After a review meeting has been carried out the forms should not be put in the bottom drawer by the appraiser or the appraisee. They both need to have the goals constantly in mind and to make sure the efforts of the fee earner are taking them towards the set goals.

These ideals are difficult to achieve in practice when everyone concerned is already too busy. However, the potential reward is happier, more productive employees who are more likely to stay with you.

Avoid the temptation to implement a performance management system because it is 'the thing to do', going through the motions of filling in the forms in accordance with the instructions from HR and filing them. The system should be about alignment and motivation, not administration.

A performance management system is a tremendously powerful tool which, if properly used, can help the firm achieve its goals and to travel along its way as a shipload of happy souls. If not used properly, get used to hearing the cry of 'man overboard'.


This article was written by Phil Jepson in 2002 and originally published by In Brief magazine. It remains as relevant now.