Fundamentals of Level Three Leadership

109. Performance Appraisal

Concept

Every organization needs to assess internal and external performance in some way. External performance is usually left to the financial reports. Earlier, I recommended an adaptation to the Kaplan & Norton Balanced Scorecard as a better, more robust way of assessing external results by mixing in internal capabilities and intangible asset pools (human, social, and organizational).

Measuring internal results, employee performance or core capability performance, is also critical to constant improvement and dependability. How does one measure individual and team performance? Most companies use a periodic, top-down (now modified with some peer and subordinate 360° feedback) performance appraisal system. These typically ...