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The question isn’t whether to get rid of performance reviews, but how to make them better

The face of performance management is changing across the world with leading organisations such as Microsoft, Deloitte, Accenture and General Electric streamlining their annual performance reviews, or even scrapping them. This trend comes from a growing perception that annual performance reviews might not be the best way to manage and improve performance in the workforce.

 

Perhaps the question isn’t whether we should abandon performance reviews, but rather how we can do them better. Rather than treating it as a dreary exercise in complying with policy, we must think about how we as leaders and HR professionals can drive a culture of continuous feedback where every interaction can build commitment, engagement and productivity. At Sage, we are wrestling with these matters ourselves. We know that the world of work is changing, and we are striving to position ourselves at the forefront of good practice for HR.

 

Research from CEB HR Leadership Council, a multinational corporate management company, shows that 77% of HR execs believe performance reviews don’t accurately reflect employee performance; there is also not much evidence to show that performance reviews have a positive effect on business goals.

 

Yet CEB’s research also indicates that one should not be in too much of a rush to scrap annual performance reviews or ratings. Many organisations that completely do away with performance reviews see productivity decline; what’s more, employees tend to rate their conversations with their bosses lower in the absence of a formal performance rating.

 

Structure is needed

What this shows is that some of us resent structure when it’s there, but crave it when it is absent. Sure, scrapping performance reviews frees everyone from a process that can be viewed as a tick box exercise, but it also means that the business lacks a formalised programme for linking people’s goals and performance with the strategy of the business. It’s hard to be fair and consistent without a formal process.

 

Taking a step back, performance management is about helping employees set career goals, correcting any performance issues, and ensuring they have the tools they need to do their work. Even with the best intentions, much-needed performance interventions may fall by the wayside if they are not documented and actioned.

 

Perhaps the question isn’t whether we should abandon performance reviews, but rather how we can do them better. Rather than treating it as a dreary exercise in complying with policy, we must think about how we as leaders and HR professionals can drive a culture of continuous feedback where every interaction can build commitment, engagement and productivity.

 

Feedback should be constant

One answer that keeps coming up to the question of better performance management is that it should not simply be an annual process, but that it should allow for more frequent feedback. A PwC study reveals that 60% of survey respondents (and 72% of those under age 30) wanted feedback every day or every week. 

 

This makes enormous sense – employees should be learning all the time, their managers should be constantly providing feedback on performance and encouraging positive behaviours to ensure the  employees’ performance and goals are in alignment with its strategic objective. Annual performance reviews are useful in this regard, but they’re not frequent enough in a business world where the pace of change is so fast.

 

Here are a few ideas about how organisations can roll out a more agile approach to performance management:

 

  • Set clear expectations: Have clear performance goals that are linked to the overall business strategy with objective metrics, so that employees understand what is expected of them.

 

  • Provide feedback more often: A single performance review session each year is not effective and regular feedback and discussion should be the norm. In addition to formal feedback sessions, encourage managers to have monthly or even weekly check-ins with their teams.

 

  • Keep it simple: Get rid of those long performance review sheets and focus on the most important questions and metrics.

 

  • Look forward rather than backwards: Rather than dwelling on past glories and failures, focus on what the employee can do to grow in his or her role and how the business can support the person’s ambitions and performance.

 

Closing words

Whether you’re a business builder or an HR professional, you’ll appreciate that it takes hard work and continued effort to build a high performance culture. You should consider every interaction as an opportunity to influence your employees’ performance in a positive way to build commitment, engagement and achievement of the desired results.

 

Anja van Beek is Vice President for People (HR), Sage International (Africa, Middle East, Asia & Australia)

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Matsheka seeks raise bond program ceiling to P30 billion

14th September 2020
Dr Matsheka

This week Minister of Finance & Economic Development, Dr Thapelo Matsheka approached parliament seeking lawmakers approval of Government’s intention to increase bond program ceiling from the current P15 Billion to P30 billion.

“I stand to request this honorable house to authorize increase in bond issuance program from the current P15 billion to P30 billion,” Dr Matsheka said. He explained that due to the halt in economic growth occasioned by COVID-19 pandemic government had to revisit options for funding the national budget, particularly for the second half of the National Development Plan (NDP) 11.

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Lucara sits clutching onto its gigantic stones with bear claws in a dark pit

14th September 2020
Lesedi La Rona

Botswana Stock Exchange (BSE) has this week revealed a gloomy picture of diamond mining newcomer, Lucara, with its stock devaluated and its entire business affected by the COVID-19 pandemic.

A BSE survey for a period between 1st January to 31st August 2020 — recording the second half of the year, the third quarter of the year and five months of coronavirus in Botswana — shows that the Domestic Company Index (DCI) depreciated by 5.9 percent.

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Botswana Diamonds issues 50 000 000 shares to raise capital

14th September 2020
Diamonds

Botswana Diamond PLC, a diamond exploration company trading on both London Stock Exchange Alternative Investment Market (AIM) and Botswana Stock Exchange (BSE) on Monday unlocked value from its shares to raise capital for its ongoing exploration works in Botswana and South Africa.

A statement from the company this week reveals that the placing was with existing and new investors to raise £300,000 via the issue of 50,000,000 new ordinary shares at a placing price of 0.6p per Placing Share.

Each Placing Share, according to Botswana Diamond Executives has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from, 7th September 2020, being the date of the Placing Warrants issue.

In a statement Chairman of Botswana Diamonds, John Teeling explained that the funds raised will be used to fund ongoing exploration activities during the current year in Botswana and South Africa, and to provide additional working capital for the Company.

The company is currently drilling kimberlite M8 on the Marsfontein licence in South Africa and has generated further kimberlite targets which will be drilled on the adjacent Thorny River concession.

In Botswana, the funds will be focused on commercializing the KX36 project following the recent acquisition of Sekaka Diamonds from Petra Diamonds. This will include finalizing a work programme to upgrade the grades and diamond value of the kimberlite pipe as well as investigating innovative mining options.

Drilling is planned for the adjacent Sunland Minerals property and following further assessment of the comprehensive Sekaka database more drilling targets are likely. “This is a very active and exciting time for Botswana Diamonds. We are drilling the very promising M8 kimberlite at Marsfontein and further drilling is likely on targets identified on the adjacent Thorny River ground,” he said.

The company Board Chair further noted, “We have a number of active projects. The recently acquired KX36 diamond resource in the Kalahari offers great potential. While awaiting final approvals from the Botswana authorities some of the funds raised will be used to detail the works we will do to refine grade, size distribution and value per carat.”

In addition BOD said the Placing Shares will rank pari passu with the Company’s existing ordinary shares. Application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that such admission will become effective on or around 23 September 2020.

Last month Botswana Diamond announced that it has entered into agreement with global miner Petra Diamonds to acquire the latter’s exploration assets in Botswana. Key to these assets, housed under Sekaka Diamonds, 100 % subsidiary of Petra is the KX36 Diamond discovery, a high grade ore Kimberlite pipe located in the CKGR, considered Botswana’s next diamond glory after the magnificent Orapa and prolific Jwaneng Mines.

The acquisition entailed two adjacent Prospecting Licences and a diamond processing plant. Sekaka has been Petra’s exploration vehicle in Botswana for year and holds three Prospecting Licenses in the Central Kalahari Game Reserve (Kalahari) PL169/2019, PL058/2007 and PL224/2007, which includes the high grade KX36 kimberlite pipe.

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