The Three-category Approach to Performance Management: Effort, Ability, or Environment

Performance Management is the act of managing personal or organizational performance. What can complicate this process are all the factors that can arise where a textbook process meets the situations and people that exist in your world. As an effective director, manager, or supervisor it is your job to ensure the success of the organization by achieving of all key performance indicators.

These targets or goals are accomplished through the implementation and execution of a solid Performance Management Process (PMP). The objective is not to discuss the building or maintenance of the process, but focus rather on the end result.

What do you do when your employees have not met the standards or expectations and their performance needs to be addressed? It is your job to protect the business while trying to be sensitive and support your employee's, and maintain a positive work environment. Sometimes both can be accomplished, sometimes they cannot.

So with the success of the business as the prize, how do you protect the prize, and decipher all the incoming data. You have to consider some general factors:

The business factor?
? These factors can include but certainly are not limited to: policy violation, policy interpretation, human resource approval, unemployment law, litigation, intent, staffing, tenure, and training.

The employee factor?
? On the employee side you must consider, anticipate, and listen to the barrage of employee "personal" issues that will be used to justify their substandard performance including divorce, child-care, abusive home life, rehabilitation, court dates, illness, poor training, no training and etcetera.

I'm going to provide you a process that allows you to increase your decision-making accuracy and velocity with 3 words. They are the three most spectacular words given to the modern manager:

Effort, Ability, or Environment

100% of all performance issues fit effortlessly into one of these three categories.

Effort

Effort Issues are defined as performance issues that arise when an employee knows how to perform and makes a decision not to.

How to identify?

Effort issues are usually inconsistent performers. The reps or associate is at goal or below goal based on how they feel or some other factor that is within their control. If you can hit goal once, there is no reason why you shouldn't be able to do it again.

How to handle?

There are many options when dealing with this segment of the population. You can provide, coaching, counseling, initiate documentation, corrective action, and even separate them from the organization.

Don't waste time on effort issues- Progressively coach and counsel these associates. Your time is too valuable to spend with someone who knows how and chooses not to when you have other reps that want to and don't know how.

Ability

Ability Issues are defined as performance issues that arise when an employee wants to perform, but doesn't have the skills or training needed to accomplish the task at hand.

How to identify?

Ability issues can be found in newer reps or neglected tenured reps that have never hit goal.

How to handle?

These reps need to be trained. Ongoing coaching and development will prevent these employees from falling short of goals and developing effort issues.

Environment

Environment Issues are defined as performance issues that arise or rather result from an environmental factor that is beyond the control of the associate.

How to identify?

There are different ways to diagnose these issues. You could have a performer that begins to fall short on active listening after she was moved to a more rowdy team.

How to handle?

If possible, try to alter the environment to ensure the reps success. If you can correct the environmental issues by relocating the employee do so.

This three-part identification process allows you to collapse all the circumstances, factors, and tenure into a very precise method. It allows you to train those that need to be trained, address environmental factors if needed, and not waste you time on effort issues.

Note: People are judged on what they actually do and not on their potential.

Once you have identified that your issue is effort, ability or environment you may take the appropriate steps to improve your employees performance, increase your business success and maintain your key performance indicators.

Aubie Pouncey is a contributing writer for http://www.righttolead.com. He has been in management for the past several years and has worked cloesly with leading performance management consultants. If you are interested in learning more about the performance management process then visit: http://accountabilityprocess.righttolead.com/

In The News:

Yahoo! News: Top Stories

Palestinians survey a kindergarten destroyed after an Israeli air strike in Gaza January 8, 2009. (Mohammed Salem/Reuters)AP - Israeli jets and helicopters bombarded Gaza Friday and Hamas responded with a barrage of rockets, as Israel's government said it will press forward with its offensive despite a U.N. resolution calling for an immediate cease-fire.



Rep. Roger L. Eddy, right, votes to recommend the impeachment of Illinois Gov. Rod Blagojevich to the House during an Illinois House Impeachment Committee hearing Thursday, Jan. 8, 2009, in Springfield, Ill. The committee voted unanimously to recommend impeachment putting the matter before the full house.  (AP Photo/Seth Perlman)AP - Gov. Rod Blagojevich faces almost certain impeachment by the Illinois House, a historic step that would trigger a trial to determine whether the Democratic governor should be tossed out of office.



Traders gather at the post that handles Wal-Mart on the floor of the New York Stock Exchange Thursday, Jan. 8, 2009 (AP Photo/Richard Drew)AP - Investors showed nervousness Friday ahead of the government's monthly employment report, sending stock futures moderately lower.



President-elect Barack Obama arrives to speak about the economy, Thursday, Jan. 8, 2009, at George Mason University in Fairfax, Va. (AP Photo/Charles Dharapak)AP - Lawmakers are under orders to finish action on President-elect Barack Obama's nearly $800 billion economic recovery plan by mid-February. But already it is plain that a set of serious fissures need to be bridged if the bill is to be completed within five weeks.



Pay Equity pioneer Lily Ledbetter addresses the Democratic National Convention in Denver, Tuesday, Aug. 26, 2008 file photo. Democrats are ushering in what they believe will be a new labor-friendly era in Washington with House votes on two bills aimed at helping women fight pay discrimination in the workplace. The House was to vote on the bills Friday Jan. 9, 2009, and they could reach Barack Obama's desk soon after he enters the White House.  One of the bills, the Lily Ledbetter Fair Pay Act, is a response to a 2007 Supreme Court decision that made it more difficult to sue over past pay discrimination.  (AP Photo/Ron Edmonds, FILE)AP - Democrats are ushering in what they believe will be a new labor-friendly era in Washington with House votes on two bills aimed at helping women fight pay discrimination in the workplace.



In this Monday, Dec. 29, 2008 file image provided by Greenpeace, coal ash slurry left behind in a containment pond near the Tennessee Valley Authority's Kingston Fossil Plant is shown  in Harriman, Tenn., after the dyke at left broke Dec. 22, 2008. Millions of tons of toxic coal ash is piling up in power plant ponds in 32 states, a practice the federal government has long recognized as a risk to human health and the environment but has left unregulated. (AP Photo/Greeenpeace, Wade Payne)AP - Millions of tons of toxic coal ash is piling up in power plant ponds in 32 states, a practice the federal government has long recognized as a risk to human health and the environment but has left unregulated.



In this Dec. 5, 2006 file photo, Leon Panetta, then a member of the Iraq Study Group, walks into a Washington hotel.    (AP Photo/Kevin Wolf, File)AP - President-elect Barack Obama is completing his national security team by announcing his unusual choices for CIA director and a national intelligence director who may face tough Senate confirmation questioning over how he confronted the Indonesian military when civilian massacres were occurring in East Timor.



In this Dec. 1, 2008 file photo, Defense Secretary Robert Gates, second left, speaks as Vice President-elect Joe Biden, left, President-elect Barack Obama; and Secretary of State-designate Hillary Rodham Clinton, far right, listen at a news conference in Chicago.  (AP Photo/Charles Dharapak, File)AP - Just minutes after George W. Bush took the oath of office eight years ago, he signed papers formally nominating 13 Cabinet-level officials. Several hours later, the Senate, meeting in a special Saturday session, confirmed seven Cabinet secretaries, including the heads of the key posts at State, Treasury and Defense.



Florida's Tim Tebow celebrates during the fourth quarter of the BCS Championship NCAA college football game against Oklahoma in Miami, Thursday, Jan. 8, 2009. Florida defeated Oklahoma 24-14. (AP Photo/Mark Humphrey)AP - Tim Tebow enjoyed the battering-ram runs. He liked the old-school jump pass. Drawing a rare penalty, that really made Tebow's day. With No. 1 Florida about to finish off No. 2 Oklahoma 24-14 for the BCS championship Thursday night, Tebow was flagged for unsportsmanlike conduct.



Freida Pinto backstage with the best picture award for 'Slumdog Millionaire' at the 14th Annual Critics' Choice Awards on Thursday Jan. 8, 2009 in Santa Monica, Calif. (AP Photo/Dan Steinberg)AP - The critics have spoken, and "Slumdog Millionaire" is their final answer.



Jaclyn Holt (R) fills out an application form at a job fair organized by the New Hampshire Employment Security agency in Salem, New Hampshire December 17, 2008. (Brian Snyder/Reuters)Reuters - Steep falls in European industrial output underlined the severity of the world economic crisis on Friday and more grim news was on the way with the United States expected to report the biggest monthly job cuts in more than 30 years.



An Israeli soldier stands atop a vehicle after crossing into Israel from the northern Gaza Strip January 7, 2009. (Amir Cohen/Reuters)Reuters - Israel pushed ahead with its two-week-old offensive in the Gaza Strip on Friday, defying a U.N. Security Council resolution calling for an immediate ceasefire.



Reuters - A report being released on Friday alleges that the U.S. Treasury has failed to reveal its strategy for stabilizing the financial system, not answered questions asked by a government watchdog, and has done nothing to help struggling homeowners, the Wall Street Journal said.

A pressure gauge is seen at a Ukrainian gas compressor station in the village of Boyarka near Kiev January 9, 2009 (Konstantin Chernichkin - UKRAINE/Reuters)Reuters - Russia's state-controlled gas monopoly said a deal to monitor gas exports via Ukraine would be signed on Friday, allowing for the resumption of supplies to Europe cut off by Moscow's price row with Kiev.



People taking the Long Island Foreclosure Tour arrive at a foreclosed home for sale in New Hyde Park, New York in this May 17, 2008 file photo. Citigroup could soon agree to principles that would let troubled borrowers save their homes through bankruptcy, sources familiar with the talks said on Thursday, while industry groups are easing their opposition to the plan. (Shannon Stapleton/Reuters)Reuters - Financial giant Citigroup Inc will support a proposal in Congress to rewrite U.S. bankruptcy law to help troubled mortgage borrowers avoid foreclosure, Chief Executive Vikram Pandit said on Thursday.



Illinois Governor Rod Blagojevich gestures as he announces former Illinois Attorney General Roland Burris as his choice to fill the vacant U.S. Senate seat of President-elect Barack Obama during a news conference in Chicago, Illinois December 30, 2008. (Frank Polich/Reuters)Reuters - A legislative committee on Thursday recommended the impeachment of Illinois Gov. Rod Blagojevich, citing widespread abuse of power including allegations he tried to sell the U.S. Senate seat vacated by President-elect Barack Obama.



Timothy Geithner (R), pictured in Chicago, November 24, 2008. (Jeff Haynes/Reuters)Reuters - President-elect Barack Obama's economic team is urgently overhauling the $700 billion financial rescue package to broaden its scope beyond Wall Street, The Washington Post reported on Friday.



A doctor checks the blood pressure of a patient at the J.W.C.H. safety-net clinic in the center of skid row in downtown Los Angeles July 30, 2007. (Lucy Nicholson/Reuters)Reuters - An analysis of proposals to overhaul U.S. health care by President-elect Barack Obama and members of Congress suggests it is possible to insure all Americans without significantly raising total health spending.



US Secretary of State Condoleezza Rice speaks to an unidentified aide during a Security Council meeting at the United Nations. Israel and Hamas have launched heavy air strikes and rocket attacks on each other, ignoring a UN Security Council order on the warring rivals to end their conflict.(AFP/File/Timothy A. Clary)AFP - Israel and Hamas launched heavy air strikes and rocket attacks on each other Friday, ignoring a UN Security Council order on the warring rivals to end their conflict.



A man carries firewood in the suburbs of Sofia, Bulgaria. Russian gas deliveries to Europe could resume, the head of Russia's state gas firm said, raising hopes for an end to a transit dispute with Ukraine that has left several European states without gas at a moment of bitter cold.(AFP/Dimitar Dilkoff)AFP - Russian gas deliveries to Europe could resume later Friday, the head of Russia's state gas firm said, raising hopes for an end to a transit dispute with Ukraine that has left several European states without gas at a moment of bitter cold.




Managing Meetings

Plan/prepare - lack of purpose causes aimless meetings. Know why you're there... Read More

What Every Manager Should Know About How to Reduce the High Cost of Employee Absenteeism

Employers pay a high price for absenteeism, often more than they may... Read More

The Three-category Approach to Performance Management: Effort, Ability, or Environment

Performance Management is the act of managing personal or organizational performance. What... Read More

Real Costs in Distribution and What it Means To Your Company

Ever feel that all the lawyers in thh Country need to give... Read More

Gift Giving for Business a Major Headache

Corporate gifting is a big headache for most business owners; how much... Read More

Recycling, Reverse Logistics and?..Candy

The candy box is a container for all your favourite chew bars,... Read More

Five Principles of Effective Communication

The problem with communication is the illusion that it has occurred. George... Read More

Well-Defined Processes ? How to Create

Interested in learning how to reduce development time, save money and stay... Read More

Performance Appraisals: Nightmares or Sweet Dreams

Some managers think of performance appraisal meetings and recollections of torn Achilles'... Read More

Six Honest Business Friends - They Guide Me In All I Do

SIX "HONEST BUSINESS FRIENDS" - THEY GUIDE ME IN ALL I DOI... Read More

Management Training: Are You Satisfied With The Results?

If you're not satfied with the results of your management training programs,... Read More

Selective Job Cuts Often Benefits Firm More Than Broad Layoffs Over Long Term

It is difficult to pick up a newspaper or listen to a... Read More

Ten Problem Solving Techniques

Do you ever need to find some good ideas, or come up... Read More

Supplier Sees 53% Reduction in Out-of-Spec Orders Case Study

The goal of perfection is a challenge. It is often viewed as... Read More

Hire Winners: Avoid These 10 Interview No-No?s

Have you ever hired someone who did not live up to expectations?... Read More

Show Me the Money!

Are you ready to raise money for your startup?Leslie Mitts, Managing Practice... Read More

Manage Your Business from the Rockies, not the Prairies

The day job as a manager is all about managing your people... Read More

Procrastination and JDI!

In a management role procrastination can seriously hold back progress and demotivate... Read More

Creating a Team Working Environment

TEAM DECISION MAKING: Managers who invite participation believe that people directly affected... Read More

The Four Key Steps In Hiring And Keeping Top People

"When you hire the best, the rest is easy!" We have heard... Read More

Balance Your Managerial Life

We have only one life, but we live in three overlapping worlds-our... Read More

Five Defining Characteristics of Great CEOs

1. Personal insight. Great CEOs are great leaders. They know themselves and... Read More

Problems with Group Decision Making

DECISION BY AUTHORITY RULE: Many groups start out with-or quickly set up... Read More

Developing Your Management Style

One thing a lot of us don't do in sales is take... Read More

Deciding What to Delegate

DECIDING WHAT TO DELEGATE: Once the benefits of delegation are established and... Read More

How to Find the Right Virtual Assistant for You

If you search on Google for "virtual assistant", you'll find a ton... Read More

The Gift of Gratitude

Gratitude might seem like a soft or even an obvious subject to... Read More

How to Hire the Right People

One of the biggest challenges any business owner or manager has is... Read More

Downsizing in Organisations - The Real Truth

I've met and worked with many people in all sectors of the... Read More

Why Management Kills Creativity

Ten or so years ago, an international consultant, specializing in employee involvement... Read More

Leadership Style: What Makes A Good Boss?

In today's competitive environment, companies realize that a good boss is one... Read More

Manufacturing Capacity as a Commodity

Excess capacity in an automobile plant at Ford, Chrysler, Toyota, GM, and... Read More

Making a Decision to Outsource: Driving Factors

Most executives view offshore outsourcing most of all as a source of... Read More

How to Attract and Retain the Right People

If you're one of the many executives struggling with finding and keeping... Read More

10 Critical Questions to Ask Before Hiring a Consultant

Talk to as many consultants as you can before hiring one. Even... Read More

Creativity Management - The Value of Being Prolific

When asked his secret to success, the author Graham Green said that... Read More

Meaningful Diversity: Creating Cultures of Inclusion

In the fitness room the other day, I caught a glimpse of... Read More

Which ITIL Process Should We Implement First?

The following question is usually debated a lot amongst IT managers. "With... Read More

Creativity Management and Time Pressure

There is a pervasive belief that time pressure stimulates creativity. This is... Read More

How to Create Trust

People buy from you, offer help, and grant rewards based on trust.... Read More

Big Company Intelligence on a Small Company Budget

Information is the lifeblood of the economy. That's especially true for businesses,... Read More

7 Tips for Growing Your Business You Do Not Want to Ignore: Business Strategies To Easily Implement

Growing companies must always be ready for the next challenge. If you... Read More

How to Keep a Good Employee: Look, Listen, Learn

Recently a client told me a wonderful story about how a change... Read More

Develop Your People and Make More Money

What is the no. 1 asset in your business beside yourself? It's... Read More

Office Politics

Office politics! It's just another way of saying: "The employees are not... Read More

Quality Staffing: Stop Placing the Wrong People in the Wrong Jobs

You can possibly teach a turkey to climb a tree ? but... Read More

Hiring Your First Business Personal Assistant: Some Guidelines for Successful Hiring

Hiring the first personal business assistant is an exciting time for new... Read More