Gary Ridge, CEO of the highly successful company, WD-40 (the lubrication folks) believes that everyone in his firm should get an ‘A’ in goal achievement.
Their performance management process reflects this emphasis…
- They begin by annually setting individual goals and performance standards (nothing new here)
- They mandate quarterly performance conversations with each employee (nice, but not anything original)
- During these discussions, manager and employee review how the latter is doing against his or her objectives. If the staffer is on target for a goal he/she gets an ‘A.’ If not, a “B” is noted down. (hmm…starting to sound new)
- But the conversation doesn’t stop there. Remember, the intent is for the employee to get an ‘A’ in every measure.
- A’s are acknowledged and celebrated.
- B’s are not at all bad, however. Not a whiff of evaluation arises, no comments suggesting a “thumbs down” from the boss. Rather, a ‘B’ is a trigger to move directly into partnership and problem-solving. The manager asks questions like, “What’s getting in the way of an ‘A’ for you here?” and “What can you do differently? How can I or the organization help?.”
- It may mean that the job duties need to be adjusted, or more resources provided, or that the employee needs to apply himself more diligently, or training is needed.
- The accountability of both parties is on the table. (Now we’re into “new.”)
- The year end performance appraisal at WD-40 they call “reviewing and learning.”
Since instituting this system, Ridge reported that annual sales have tripled, from $100 million to more than $339 million. They have a retention rate three times the U.S. national average and consistently register employee engagement scores in the mid-90’s (percent).
I really like the non-judgmental flavor of their approach. I like the spirit of winning. I like that their conversations around performance adopt an adult-to-adult tone.
If you are interested in reading more, check out the book by Ridge and Ken Blanchard, Helping People Win at Work.
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