Defining Performance Levels
Defining different performance levels, usually with associated titles, is a structured approach used to assess, categorise, and communicate the performance of individuals and teams within an organisation. It helps in identifying performance trends and guiding development and rewards.
Goal
The goal of Performance Levels is to standardise performance evaluations across autonomous teams, ensuring fairness and transparency in how performance impacts career progression and rewards.
Context
Organisations with product teams are flatter than traditional hierarchical structures, because individuals work in cross-functional teams rather than in functional hierarchies. This structure requires a clear and consistent approach to evaluating performance, as it can be challenging to compare individuals across different teams.
Inputs
| Artifact | Description |
|---|---|
| Industry Benchmarks | External data on performance levels and titles in similar roles across the industry. |
| Detailed Job Descriptions | A formal document outlining the role's responsibilities, required skills, and qualifications. |
Outputs
| Artifact | Description | Benefits |
|---|---|---|
| Performance Levels | A structured framework defining different performance levels and associated titles. | Standardised performance evaluations, clear career progression paths, and fair rewards. |
Anti-patterns
- Too Focussed on Hard Skills: Overemphasising technical skills and neglecting soft skills like communication and teamwork.
- Infrequent Calibration: Failing to regularly review and adjust performance levels, leading to outdated evaluations.
- Lack of Transparency: Not clearly communicating the criteria for each performance level, causing confusion and dissatisfaction.