Ironically, many employers struggle to fill middle and senior
management positions, seeking outside candidates in a tight
Companies must realize that in order to succeed, they need
to grow their own leaders by identifying high potential
candidates within the company and help them fulfill their
potential by providing them with meaningful performance
feedback, individual development goals, and career path
mapping. The performance appraisal process is a key component that supports career development.
The Performance Appraisal
A company’s appraisal process is most effective when the
appraisals tie directly to the KRAs of each role. Although
many companies have KRA job descriptions, they still maintain just a handful of appraisal templates for broad employee
categories (e.g., field, office, and supervisor). Criteria often
used in such appraisals include quality, effort, and initiative.
While these criteria are desirable, they are subjective and
impossible to measure.
Instead of this one-size-fits-all approach, the appraisal
process should begin by establishing and communicating
to each employee their roles’ KRAs, tasks, and associated
accountabilities that will be measured. It is important that
both the employee and supervisor have a clear understanding of each KRA, how and when it will be measured, and
what constitutes success.
For example, if you are hiring a new controller and one of the
position’s critical goals is to improve cash flow, you should
establish an upfront agreement about how it is measured
(e.g., Days Sales Outstanding (DSOs)), how often it is measured (e.g., monthly), and the desired outcome and timing
(e.g., DSOs < 45 days within six months of hire).
This ensures there will be no surprises during the performance review. Your controller will know exactly whether or
not he or she has met the KRA accountability; it will not be a
point of debate. During the face-to-face appraisal, you can have
a meaningful conversation about performance improvement
steps if the KRA is not met, or set new goals and assign stretch
KRAS DRIVE SUCCESSFUL
Recruitment & Retention
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