Is there a predictable cycle to performance management?

Performance management is not just an annual event --the key to a successful performance management process is that it be ongoing. While performance management programs can look very different from one another, at their core, all successful performance management programs tend to contain certain elements that occur of some sort of a regular cycle.

The key elements in a typical performance management cycle are:

Annual strategic planning. Change is inevitable in today's fast-paced world. To remain competitive, organizational priorities must respond to the changing business environment. It's senior leadership's job, with input from all relevant players, to set those broad strategic goals.

Setting expectations. Once high-level strategic goals have been set, its up to HR and the supervisors in the organization's different functional areas to set expectations for individual employees that align with those strategic goals. Clear expectations in the form of performance goals enable employees to take responsibility for their own performance. They know what's expected, how to achieve results and how to monitor their own performance.

Ongoing tracking and feedback. In this phase, supervisors monitor the employee's performance. They should take appropriate opportunities to provide feedback on what the employee is doing well and what needs improvement. The supervisor should make regular opportunities to discuss progress toward achieving specific performance goals.

Reviewing process. The purpose of the progress review is to compare actual performance to the performance expectations agreed to in the setting expectation phase. It may be appropriate to set new, additional goals or modify the original performance goals. Decisions regarding merit pay increases also typically occur during this period.