Performance Management

6 Components of a Well-Designed Performance Management System

Are you on track to reach your restaurant’s goals? Do you have a system in place to help you and your staff reach them?

If you answered “No,” a solid performance management system can make your job much, much easier.

What is a Performance Management System?

A performance management system is defined as “a proactive system of managing employee performance for driving individuals and organizations towards desired performance and results.”

Yowza. That sounds complicated, doesn’t it? It’s really not though.

Simply put, it’s a system to manage the performance of a company and its people. That sounds a lot easier and you’re probably already doing some of the steps without knowing it.

But when we speak with operators about “performance management,” they’re reluctant to jump on the bandwagon. They envision spending hours on end at their desk, tracking metrics and writing up employee performance reviews. While those are certainly pieces of the puzzle, a well-oiled PM system doesn’t meanmore work on your plate.

In fact, it should actually mean less because everyone will be on the same page. Plus, the positive benefits for everyone are too good to pass up.

Performance Management Goals

The goal of a PM system is simple: Ensure that everyone – management, staff, the company as a whole – is working together to meet overall operational and company performance goals.

We want your restaurant, people, operations, and financials to complement each other – which means the resulting synergy actually propels you towardsyour goals!

But how in the world do you make that happen?

Steps to a Solid Performance Management System

Well, there are six components you should focus on to develop a system that will work within your own four walls.

1. Understanding the expectations.

I’m sure we can all agree that communication and clear expectations are important. And that’s the first step in implementing a functional PM system.

When instructing employees, make sure you express your expectations clearly and confirm they’ve understood the message. Aim for consistent, positive and constructive feedback too.

2. Performance reviews.

Performance reviews measure how your employees are responding to your direction. If you’ve been clear in your expectations AND employees are understanding the message AND you’ve hired staff that match your culture, these reviews will be much simpler than what you’re used to.

If you find the reviews aren’t going well, it may be an indication that your team isn’t understanding their individual roles. You may need to restate expectations and offer more guidance on how to be the best teammate possible.