How to establish an excellent performance management process in project-centric organizations?

A majority of managers believe that the performance management process of the organization does not correlate to the actual work done by the team members. This ultimately causes dissatisfaction with the annual performance evaluation. This review majorly comes from managers who are working for project-centric companies or with organizations where work is done in teams.

Not-for-Profits, professional services organizations, IT companies, product development companies, consulting firms, etc. come under the category of project-centric organizations. In many companies R&D, marketing, human resource department, and even strategy are project-centric. In these companies, employees work on different projects, instead of working in the same position for a longer period. In some cases, employees are responsible for working on different projects simultaneously. The objectives, requirements, and timelines for each project differ from each other, can change continuously, and are majorly dependent on the end customers.

In most project-centric companies, there are a majority of white-collar employees who have the knowledge of technology, want transparency, along with a flexible working environment. Among this workforce, it is not possible to implement a hierarchical and rigid performance management system. HRs are trying different methods and solutions to address this challenge. So to ease their difficulties here are some best ways to establish a smooth performance management process in project-centric organizations.

Effective ways to set up the best performance management process

Follow flexible workflow

Don’t keep everything under your custody, give some responsibilities to managers and employees. Allow them to create the parameter of measurement, and give them comments in an additive manner throughout the project lifecycle. This will not only help them but will also be proven beneficial for other team members.

Entrust team leaders or project managers

Let project managers or team leaders on the performance management process for their project. Give them the authority to add and remove members, set goals, determine skills, budget, job requirements, etc.

Set-up team goals

Create goals and assign them to the team members. Then track progress and accomplishments to find out the best performer and reward teams that perform outstanding, either by meeting or exceeding the expectations.

Promote transparency

Allow project team members to view each other’s goals and objectives. Encourage them to add comments and notes for everyone including team leaders. This will create transparency within the team and make it easier for management to track progress. A transparent workplace builds trust among employers and employees, helps improve morale, lowers job-related stress, and boosts performance. And increased transparency boosts employee happiness.

Final note

The above approaches from creating an effective performance management process in a project-centric organization can be more fruitful if companies use the performance management tools. They just need to rely on applications that give real-time insight into the performance and progress of each team member and project. entomo is one of the best performance management platforms that help in the overall development of the organization.

entomo is a modern performance management tool built for the ‘future of work.’ Powering 30mn+ users, entomo enables ‘enterprises of tomorrow’ to drive performance by aligning goals and nudging actionable insights to manage distributed & remote teams and build a tomorrow-ready workforce.

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