Saturday, March 21, 2015

Performance Evaluation Innovation


Deloitte is trying to improve performance evaluation by shifting from skills to future actions and frequent assessments.

I would like to laud Deloitte to take the initiative to reform performance evaluation which both
the bosses and the workers hate.

However, I am not sure if the new proposed measure is a significant improvement. Yes, it adds some future focus but we know how forecasting is quite flawed and that people don't really change much.

I think a better way would be to use crowd sourcing to at least identify the best and the worst performers. The firm can set up an anonymous polling website, where employees can anonymously vote for the best and worst workers/ bosses. To incentivize participation, HR can reward cash prizes or other perks. For trust, the firm can hire a third party to monitor and evaluate the whole process.


P.S.
I hope Deloitte does a randomized field experiment to test the effect of its new policies by randomly picking certain divisions or offices.



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