Organizational performance management What is the "new normal" in your organization? The Great Recession has hit the reset button and has changed how enterprises will manage organizational performance and drive improvement. This may be a whole new ball game but the influences are familiar in both the public and private sector. Industry is faced with employees who are disengaged; now weary from months and months of job vulnerability and layoffs. Bringing people back on board as business picks up takes training and a long time to restore that lost experience and talent. Throughout the economic downturn inventories were drawn down and global supply chains are squeezed making it harder to meet margins and operate with peak efficiency. The public sector, which has been moving more aggressively to performance based budgeting, is now facing unprecedented government budget deficits. Nonprofits are faced with shrinking resources and greater demand for strategic outcomes. There is one beacon of hope for organizations across the globe - a resource sitting right under the proverbial nose of the CEOs - relatively untapped, costs nothing more, and is proven to increase operating margins. The solution -- People. Those already employed in your organization. However, engaging employees is hard to do. According to Gallup Management, 71% of Americans who go to work every day are not engaged. Disengagement comes with significant cost to organizations. The cost to the U.S. economy of disengaged employees is estimated at between $254 and $363 billion annually. According to Harvard Business Review's annual 10 fresh solutions that will improve the world, the top motivator of performance is progress. The report says, "It's on days when workers have the sense they're making headway in their jobs, or when they receive support that helps them overcome obstacles, their emotions are most positive and their drive to succeed is at its peak." Unfortunately, the leaders surveyed about what makes employees enthusiastic about their work ranked progress dead last. Enterprises can show progress on a regular enough basis by communicating the strategy and vision for across employee lines; eliminate the friction between the front office and the front line; share real time information - not just boat loads of dashboarded, posterized data; and most importantly, engage the front line in real conversations and planning for change. There is a lot of tribal wisdom there, yet it remains untapped as long as initiatives have to eke out of the front office, and filter through middle managers, organizational policies, and balanced scorecards. There is plenty to gain by developing a new focus on progress and engaging front line employees. According to a study conducted by ISR global research, there was a fifty- two percent gap in the one-year performance improvement in operating income between companies with highly engaged employees versus companies whose employees have low engagement scores. Henry Mintzberg wrote, in a July 2009 HBR article, about the need for companies to rebuild themselves as communities, where employees feel good about their company and the people who work there. Hintzberg states, "Beneath the current economic crisis lies another crisis of far greater proportions: the depreciation in companies of community-people's sense of belonging to and caring for something larger than themselves." His asserts that, " Decades of short-term management, in the United States especially, have inflated the importance of CEOs and reduced others in the corporation to fungible commodities-human resources to be "downsized" at the drop of a share price." His fix is to create community. The basic elements of this community, where people feel good about the people they work with, feel valued, know that they are making progress and are able to contribute to that effort, are founded in a few recognizable initiatives. 1) Culture: Leadership, vision, values, and a strategic plan. 2) People-focused policies: With budget and resources needed to empower. 3) Meaningful Metrics: measurement of factors essential to the organization's performance. All of these elements lead to higher organizational performance which in turn leads to high level of trust, pride, satisfaction, and success. A tall order but a necessity in this new normal. http://performanceappraisalebooks.info/ : Over 200 ebooks, templates, forms for performance appraisal.