You’ve got better things to do
Your system needs to be easy – not something that has to be trained, not something that’s going to take hours to come to terms with. You need your team to be out making sales, building products and working on new ones, so performance management needs to be quick, intuitive, and give results without taking forever.
Data-centric people decisions
He’s a good guy! Is not enough information. You need to use the data to make defensible decisions on people. Gut feeling doesn’t cut it when it comes to making the hard people decisions.
How can we raise average productivity by 10%? You won’t get that productivity increase by only focusing on your best performers. You need a system that identifies and helps you manage performance (and productivity) at all levels of the organization.
Managing performance is important
Because if you don’t, who are you going to blame for objectives not being met? Can you even prove that the employee knew what to work towards and was actively doing it?
What & How
You need to know they’re making the sales today and can make the same sales next month. Can you tell at a glance who’s achieving sales targets? Can you also tell whether they’re likely to continue making sales in the future? You need to measure achievement of objectives, and also consider how well your staff measure up on behaviors – how well they build relationships, how convincing they are in a conversation – that means they’re likely to succeed in future. If people aren’t meeting targets, can you find evidence why?