Performance Management


Getting performance management (PM) right is critical to strategic execution in rapidly evolving business environments characterized by fast-moving markets, converging industries, increasing talent scarcity, growing dependence on contingent workers, and shifting labor preferences. But the pressure on PM is not simply a by-product of these trends: it is also an acknowledgment that next-generation performance management will be needed to deliver on digital transformation’s promise.

Performance management might be a late arrival to digital transformation, but as our research demonstrates, it is now poised to make radical use of new technologies. Technology-driven performance management already features apps for reading a team’s emotional engagement or predicting which high performers are preparing to leave an organization. For leaders, understanding and embracing the technology-based future of PM is essential to executing and leading digital transformation.

Does AI-Flavored Feedback Require a Human Touch?

With customized and continuous data-driven feedback becoming a new normal, managers are revisiting the role they should play in delivering, facilitating, and curating face-to-face employee feedback. Does direct managerial involvement complement or compete with data-determined performance reviews?

Rebooting Work for a Digital Era

Until recently, IBM’s performance management system followed a traditional approach that revolved around yearlong cycles, ratings, and annual reviews. This case study explores how, after recognizing that the model was holding back the organization, IBM reimagined its performance management system with a model that favors speed and innovation and cultivates a high-performance culture.


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