John Laverick

Idea

Can you have rigorous performance management without first having a rigorous understanding of performance?

Organisations need to address genuinely poor performance, but relative ranking can create an appearance of precision without resolving harder questions about outcomes, context, comparability, collaboration and what good performance actually means.

Current thinking

Poor performance matters.

Leaving it unaddressed is unfair to colleagues who carry the additional load, unfair to users who depend on the work and often unfair to the person themselves, who may be receiving neither the clarity nor the support they need.

So the interesting question is not whether organisations should manage performance rigorously.

They should.

The harder question is whether ranking people against one another is the same thing.

It is tempting because ranking creates apparent precision.

Someone is in the top group. Someone is in the middle. Someone is in the bottom ten per cent.

The distribution looks like information.

But before acting on it, an organisation still needs to know what the ranking actually measures.

In some work, individual performance is relatively visible. Outputs are comparable, responsibilities are clear and differences can be observed with reasonable confidence.

In other work, performance is deeply entangled with context.

One person inherits a mature service while another inherits a failing one. One role produces visible outputs while another prevents failures that never become visible. One person delivers individually while another makes everyone around them better. Some outcomes appear quickly; others take years.

The more collaborative the work becomes, the harder it is to separate individual contribution cleanly from the system around it.

None of that makes performance unknowable.

It makes judgement unavoidable.

Can you have rigorous performance management without first having a rigorous understanding of performance?

Relative ranking answers a different question from absolute performance.

It can tell an organisation who has been judged stronger or weaker than somebody else.

It does not, by itself, establish that the person at the bottom is performing poorly.

A strong team still has a bottom ten per cent.

So does a weak one.

If the objective is to identify genuine underperformance, the organisation needs more than a distribution. It needs clarity about expectations, evidence, outcomes, behaviours, context and the support or intervention already provided.

This is where the connection to clarity matters.

Performance systems are often asked to create precision after the organisation has failed to create clarity beforehand.

If people do not know what good looks like, what outcomes they own, how collaboration is valued or how trade-offs will be judged, a ranking process cannot repair that ambiguity at the end of the year.

It can only formalise a judgement made inside it.

There is also a Goodhart problem.

Once a measure becomes consequential, people adapt to it.

If visible individual output dominates assessment, invisible work becomes less attractive. If competition for relative position matters, helping a colleague can become economically irrational. If managers are expected to populate a distribution, calibration can drift from understanding performance towards negotiating positions.

Rigour therefore means more than being willing to make difficult decisions.

It means being rigorous about the evidence on which those decisions are based.

Address poor performance.

Be clear when expectations are not being met.

Support improvement where improvement is possible.

Act where it is not.

But do not confuse putting everybody into favourite rank order with understanding how well they are actually performing.

Writing on this idea