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Resist the temptation to keep tinkering with the evaluation process.

zational goals. (And its often abused: its not uncommon when budgets are tight for companies to issue instructions to keep ratings low to justify small raises.) No wonder a time-consuming, often emotion-filled ritual becomes dreaded by those both giving and receiving performance reviews. To make the process produce less angst, we need to make it meaningful and useful. Managers should be trained in all four elements of performance management: goal setting, coaching, development planning, and performance evaluation. Manager skill in these four areas is absolutely essential for the success of any performance management system, says Forgie. Without these fundamental skills in place, no form, rating scale, or technology will make the system work. Many organizations seem to recognize the importance of skill training, but the focus appears to be on the annual evaluation meeting and filling out the forms. The majority of companies in OnPoints study, 62 percent, provide managers with training to conduct effective performance evaluations. Yet fewer organizationsonly 53 percentprovide the skill training related to setting goals and coaching and feedback. This appears to be at the core of the problem, Forgie says. If you dont have clear, measurable goals in place and provide ongoing coaching and feedback, its almost impossible to have an end-of-the-year appraisal that employees see as fair and accurate, no matter how well the manager conducts the meeting. The skills many companies neglect are really those that are critical to success. When leaders can do a good job setting goals, coaching people, and helping them develop, they arent just doing paperwork, theyre strength-

ening the organization. When companies ensure that managers can do these things well, Forgie says, it becomes easier to identify and recognize top performers and help those who arent achieving expectations improve their performance, which of course is critical to improving the organizations performance. When your managers understand how performance management is linked to your companys larger goals how it drives the business and adds value to the companytheyll quit seeing it as an administrative task, Forgie argues. That buy-in is everything. Get it and youll see a whole new attitude toward performance management, which can transform the entire culture of your company.

ENGAGING EMPLOYEES THROUGH SOCIAL RESPONSIBILITY

Its no secret that engaged employeesthose who put both head and heart into their work, who go the extra mileare the most productive, the best team players, and the most committed to organizational goals. And thats why companies routinely go out of their way to engage their people, whether its with reward and recognition programs, attitude surveys, company events, team-building exercises, or other effortsthe list of approaches is virtually endless. (See Employee Engagement: Beyond the Fad and into the Executive Suite in Leader to Leader Number 44, Spring 2007.) Yet one road to employee engagement is usually overlooked. Although corporate social responsibility (CSR) is usually seen as a community relations effort, a positive perception of an organizations social responsibility can actually have an even greater impact on the organizations own employees than on the outside world. Whether its volunteering to help coach a neighborhood baseball team or serving on the board of a communitybased nonprofit or donating old clothes to a church for

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People want to work for companies that are responsible citizens.

distribution to the survivors of a hurricane or other natural disaster, people have a long history of helping others. It should therefore come as no surprise that people want to work for companies that are responsible citizens in their communities. According to a recent survey conducted by Sirota Survey Intelligence, employees who have a favorable view of an organizations CSR tend to have positive views about the organization in other areas: Senior managements integrity Senior managements inspirational sense of direction The organizations competitiveness in the marketplace The companys interest in employees well-being Employees engagement or pride in their organization According to Douglas Klein, president of Sirota, People want to be associated with a successful organization that has a positive image. Insightful leaders recognize that strategic CSR enhances morale, and higher morale contributes to better business results. Businesses that recognize the importance of social responsibility often have employees who tend to be more satisfied with their jobs, adopt similar values, and become more committed to achieving success within the industry. Over the past couple of decades, the notion of corporate social responsibility has gained ground as an increasing number of companies recognize that it can be good for business. Business for Social Responsibilitya San Franciscobased nonprofit organization that provides socially responsible business solutions to many of the

worlds leading corporationsdefines CSR as achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment. The organization has grown from an association of 50 founding companies in 1992 to more than 250 member companies today. Current members include top-tier international global companies such as American Express, BP, Coca-Cola, Exxon Mobil, Hewlett-Packard, Microsoft, Wal-Mart, and The Walt Disney Company. A Business for Social Responsibility report cites a growing body of dataquantitative and qualitativethat demonstrates the bottom-line benefits of socially responsible corporate performance. Among them: Improved financial performance. A 2002 DePaul University study showed that overall financial performance of companies listed by Business Ethics magazine as Best Citizens was significantly better than that of other companies on the S&P 500 Index. Increased ability to attract and retain employees. Researchers have found that companies perceived as having a strong commitment to corporate social responsibility have an easier time recruiting and retaining employees than those that are not. Enhanced brand image. Just as employees are drawn to socially responsible companies, so too are customers. Increased sales and customer loyalty. Studies show that the market is growing for products and services of companies that are perceived to be socially responsible. Values-based criteria such as child labor free and sweatshop free labels are gaining in popularity. Increased productivity and quality. When companies improve working conditions and increase employee involvement in decision making, productivity and quality often improve. In its survey of 1.6 million employees working for more than 70 different organizations, Sirota Survey Intelligence found that 70 percent of respondents are positive about their employers commitment to corporate social

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responsibility. Within this group of people who have a positive view of their organizations commitment to CSR, 71 percent also rate their senior managers as having high integrity, 67 percent believe their senior managers have a strong sense of direction, 86 percent exhibit high levels of engagement in their jobs, 75 percent believe their employer is interested in their well-being, and 82 percent believe their organization is highly competitive in the marketplace. Despite continuing debate regarding the true value of corporate social responsibility programssome critics believe them to be no more than a new angle on the old challenge of generating positive public relations, while

others believe the resources devoted to CSR initiatives would be better spent elsewherethis survey makes a clear link between socially responsible organizations and the men and women who work for them. Employees do not divide the moral compass of their company into one part for employees and another part for the community, Klein says. Their employers commitment to corporate social responsibility is critical in conveying that the organization acts in their best interests, and is dedicated to treating them fairly and equitably. To employees, CSR and business success go together. Companies that enhance their reputations through CSR perform better and generate greater employee loyalty from workers.

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