Work Rules: Two Truths of Performance Evaluation Systems

The shortage of critical talent will continue to impact all industries and contractors who master talent will be the winners.

D. Brown Management Profile Picture
D. Brown Management
December 17, 2018 2 minute read
Share

Performance evaluation systems are a critical part of mastering talent through talent development and is one of the nine key processes. 

Leadership Tools: Two Truths about Performance Review Systems: No one likes the current system and no one likes the planned changes to the system. Book: Work Rules! by Laszlo Bock

With the construction industry having such a shortage of talent, the contractors that will dominate tomorrow will be the ones that have developed systems for quickly building skills within their teams.

The foundation of great coaching like John Wooden is about being able to give rapid and actionable feedback.

Longer term feedback, including career development planning, requires a more formalized structure that is consistent across the business. There is no perfect system, so you should always be watching the results and improving with each cycle: PDCA

-----------------------

Laszlo Bock defines it best in his fantastic book called Work Rules.

There are two truths about performance review systems.  

  • Truth One: No one likes the current system.  
  • Truth Two: No one likes the planned changes to the system.  

Remember that all great evaluation systems start with a clear job description.

Cascading Goal Setting and Management (Objectives and Key Results - OKRs)
Successful outcomes start with shared goals integrated across all parts of the business — including multi-company project teams. Management ensures those goals are regularly reviewed and adjusted to stay on track.
Related Article
Collections and Retention Trend Metric
Assuming that a contractor’s project team has done an effective job of aggressively billing the project, the biggest variable that remains for cash flow is the effectiveness of collections.
Related Article
Decision Quality: Data Points, Accuracy, Confidence, and the Danger Zone
Decision quality IS NOT linearly related to information quantity. In complex environments with elements of uncertainty, data quantity quickly reaches a point of diminishing returns but increases decision confidence, which puts you into the danger zone.
Related Article