Module 4

A performance agreement is a written document that defines accountability for specific personal and organizational goals and describes exactly what great performance looks like.  It is an open-ended win-win agreement between owners/management and employee teams.  It holds everyone accountable to each other and defines individual expectations to achieve the company’s vision.  

Performance agreements are a great addition to a performance management system. They enhance accountability for both workers and managers, and they establish clear expectations that employees can use to take responsibility for their own performance.

It eliminates entitled, subjective and destructive “Because I’m the boss” directives that crush a team’s spirit, eliminating trust and respect.  Managing by performance standard providing people with the understanding and the choices they need to make to do a good job and achieve the results that are expected of them.

It is an open-ended win-win agreement between owners/management and the employee team.  It holds everyone accountable to each other in order to achieve common goals.  It clearly defines what each party is expecting from the other in order to achieve the single clear-cut result.  Fair agreement by all parties involved is the key to its success.   The difference between this and a handbook is that goes into greater daily performance detail and is constantly evolving and changing to meet the needs of all.  At any time the performance agreement can be opened up for discussion to confront a feeling of inadequacy or inequity.   This gives all a feeling of fairness and control over their own destiny and allows creativity and ingenuity to the surface, while always looking to continually improve.

The following items make up a performance agreement.

• Desired results:  Vision statement, short and long-range goals.
• Standards of operation:  The minimum standard of performance of your service (by department) and the required actions by the individuals needed to provide it.
• The No – No’s:  Explicit communication regarding common actions to stay away from.
• Consequences:  Positive and negative results of those behaviors and actions.
• Systems and support functions:  Who, what and where to look for help, when needed.
• Service Recovery parameters