Term: Performance Management

What Is Performance Management?

Performance management is an ongoing process of aligning employee performance with organizational goals through clear expectations, regular feedback, development, accountability, and progress tracking.

It helps leaders understand how employees are performing, identify opportunities for improvement, support employee development, and ensure individual contributions remain aligned with business priorities.

Why Is Performance Management Important?

Effective performance management helps organizations:

• Align individual performance with business goals
• Set clear expectations and priorities
• Identify performance and development gaps
• Provide regular feedback and coaching
• Improve employee accountability
• Support employee growth and development
• Track progress toward organizational objectives

What Does Performance Management Include?

Performance management can include:

• Goal Setting – Establishing clear objectives and measurable outcomes.
• Performance Tracking – Monitoring progress against goals and expectations.
• Feedback and Coaching – Providing regular guidance to help employees improve and succeed.
• 1:1 Meetings – Creating regular opportunities to discuss performance, challenges, development, and priorities.
• Development Plans – Turning performance and capability gaps into actionable development opportunities.
• Accountability – Following through on commitments and action plans.

Performance Management vs. Performance Review

Performance management is an ongoing process that includes goals, feedback, coaching, development, and accountability.

A performance review is a specific evaluation of an employee’s performance, often conducted periodically.

A performance review can be part of performance management, but effective performance management should not depend on an annual review alone.

Performance Management and Talent Planning

Performance management provides valuable insight into an employee’s current performance, strengths, and development needs.

When connected with talent planning, these insights can help leaders identify future capabilities, development priorities, and employees who may be ready for greater responsibilities.

MyTalentPlanner connects performance, talent planning, behavioral insights, development plans, goals, and accountability to help leaders move from evaluating performance to improving it.

Performance Management for SMBs

For small and midsize businesses, performance management can provide a structured way to keep employees aligned with business priorities without creating complex processes.

Regular goals, 1:1 conversations, feedback, development plans, and accountability can help leaders address issues earlier and support employees more effectively.

MyTalentPlanner helps SMB leaders connect strategy, talent, and execution so employee performance contributes directly to business goals.