Opaido · Wiki · Topic
Performance management
Goal-setting and measurement - KPIs, OKRs, appraisals, scorecards and the review cycle.
360-degree feedback 360-degree feedback gathers performance input from a manager, peers, direct reports and the individual themselves, rather than from the manager alone.Balanced scorecard A balanced scorecard measures performance across four perspectives - financial, customer, process and learning - rather than financial results alone.Baseline A baseline is the starting measurement a target's progress is judged against.Calibration Calibration is a cross-manager review session that aligns performance ratings to a consistent standard before they are finalised.Career pathing Career pathing maps the roles and steps an employee can progress through within an organisation.Continuous feedback Continuous feedback is ongoing performance conversations through the cycle, rather than relying on a single annual review.Forced distribution Forced distribution requires performance ratings to fit a predetermined distribution across a population, such as a bell curve.Goal alignment Goal alignment links individual and team goals up to organisational objectives, so day-to-day work connects to overall strategy.Individual development plan An individual development plan (IDP) sets out the learning and experience an employee needs to grow, distinct from a plan addressing underperformance.Key result A key result is a measurable outcome that proves an objective has been met, the quantified half of the OKR framework.KPI A KPI, key performance indicator, is a quantified measure tracking progress toward a specific objective.KRA A KRA, key result area, is a broad area of a role where results are expected, under which specific KPIs sit.Lagging indicator A lagging indicator is a metric that confirms results after the fact, such as final revenue or completed turnover, rather than predicting them.Leading indicator A leading indicator is a metric that predicts future results, tracked to catch problems or progress before the final outcome is known.Objective An objective is a clear, qualitative statement of what is to be achieved, paired with measurable key results in the OKR framework.OKR An OKR, objectives and key results, pairs a qualitative objective with a small set of measurable key results that prove it was achieved.Pay for performance Pay for performance links part of an employee's remuneration to their measured results, rather than paying a fixed amount regardless of outcome.Performance appraisal A performance appraisal is a periodic, formal assessment of an employee's results against expectations for the period.Performance cycle A performance cycle is the recurring period over which goals are set, progress is tracked, and a formal appraisal is conducted.Performance improvement plan A performance improvement plan (PIP) is a structured, time-bound plan to address underperformance, often a precursor to disciplinary action.Performance management Performance management is the continuous process of setting goals, measuring results and developing people - the umbrella over the rest of this category.Quota A quota is a fixed performance target an individual or team must reach, most common in sales roles.Rating scale A rating scale is the defined scale, commonly 1 to 5, used to score an employee's performance at appraisal.Scorecard A scorecard is a consolidated view of an individual's or unit's metrics against target, often modelled on the balanced scorecard structure.Self-assessment A self-assessment is an employee's own rating of their performance, submitted as one input into the formal appraisal process.SMART goals SMART goals are goals that are Specific, Measurable, Achievable, Relevant and Time-bound - a checklist for writing well-formed objectives.Stretch goal A stretch goal is a deliberately ambitious target set beyond normal expectations, intended to push performance further than a standard goal would.Target A target is the specific value a metric must reach to count as success, judged against a baseline starting point.
