Rating Systems: Do they Improve Performance?

Rating systems have been relied upon for years to improve performance. Often times a person’s career, pay raise or job is in the balance.

How effective is your performance management rating system?

A  study published in the Journal of Applied Psychology sheds a not too flattering light on rating systems and what they really measure.

“The most comprehensive research on what ratings actually measure was conducted by professors Mount, Scullen, and Goff. In their study, 4,492 individuals were rated on a number of different performance dimensions by two bosses, two peers and two subordinates, who combined to produce almost half a million ratings. The researchers then analyzed these ratings and discovered that 54% of the variance in the ratings could be accounted for by “idiosyncratic rater effects”—namely the peculiarities of each individual rater’s perception. Only 21% of the variance in ratings could be explained by the ratee’s actual performance. All of which led the researchers to the following conclusion:

“Although it is implicitly assumed that the ratings measure the performance of the ratee, most of what is being measured by the ratings is the unique rating tendencies of the rater. Thus ratings reveal more about the rater than they do about the ratee.”

Scullen, S., Mount, M., & Goff, M. (2000). Understanding the latent structure of job performance ratings. J Appl Psychol., 85(6), 956–70.

What’s your experience been with rating systems in your organization? Do you feel they are worth the time and effort?

Increase Sales with Your Time Management Practices

Want to increase sales? Analyzing your time management practices is a great  place to start. Time management practices are what you do and how you normally  manage your time. Research shows that effective time management practices are  one of the greatest contributors to high performance.

Time management practices reflects what you routinely say “yes” to as well as  what you say “no” to. It is these moments of decision that separate the higher  performers from the also rans. High performers are proactive because of the time  management they develop. They gain an unfair advantage over their competitors  because they attack the marketplace based on their personal strengths and  knowledge instead of reacting to the conditions set by others.

Because they are more strategic in their approach to their jobs, high  performing salespeople are able to keep focused on what’s important. They employ  clarity of purpose, consistent communication to the marketplace, commitment to  taking right action and the discipline to execute. These salespeople achieve  excellent results because they know:

  • Their clients and the pain they are experiencing.
  • How their product addresses the pain.
  • What message clients need to hear to make a decision.
  • How to move their clients from decision to implementation.
  • When they can’t win.

Because they have a clear and consistent strategy for approaching the  marketplace, they are able to focus on important and winnable sales  opportunities. They don’t get distracted by periodic “road kills” that  may litter the highway of a major sale. They also don’t get seduced by the  allure of landing the “big elephant” when their chances of winning are slim or  none.

The quickest way to zap your time and income is to spend $1,000 in selling  effort to land a $100 commission.

To make sure they are pursuing the right opportunities, they ask themselves:

  • Is there a fit between the client’s needs and my solution?
  • Can I win?
  • Is it worth pursuing?

By developing the discipline to ask these questions regularly, answer them  honestly and then acting on the answers, successful salespeople are able to say  “yes” to the right opportunities and “no” to the wrong ones.

One key time management practice is mentally planning the day before it  begins by visualizing what you need to do for the entire day. Research from a  variety of organizations determined that this practice is one of the most  distinguishable characteristics among high performance people. The techniques  used may vary from formulating a “to do list” just before going to bed, to  planning the day while showering. But, high performers develop the specific  discipline of mentally starting the day before the activities actually  begin.

Remember, if you don’t manage your time someone else will. Commit yourself  improving your time management practices and watch your sales increase

For a Free Assessment of your time management practices go to:http://www.philfaris.com/wp-content/uploads/2011/07/Time-Management-Practices-Assessment-Exercise_2.pdf

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