Despite all the criticism leveled at performance management systems, there are organizations such as WD-40, SmithBucklin, and GE that make it work. Why? Four core elements set them apart:
• Holism. The performance management systems of WD-40, SmithBucklin, and GE are not isolated systems but rather highly integrated into the philosophy, values, and systems of the organization. Garry Ridge, the CEO of WD-40, says that this is part of the important values of the organization and “each part must complement the rest.” For example, “You cannot have values such as ‘Making it better than it is today,’ and then not measure, manage, and reward to that goal.” In the organizations that were the most effective, performance management ...