Whether it is a small startup or a large multinational corporation, one thing that is common between them is that they’re all looking to replace their age-old methodologies and approaches towards project management with practices that can help them manage their time and resources better, reduce production costs, up profits, improve quality, and meet stakeholder expectations.
In a bid to meet all of the above requirements, businesses are embracing Agile practices, which are said to be here for good. And while change control is one of the primary areas of concern for Agile managers, they also have other responsibilities related to building and managing teams.
One big question that Agile managers are faced with is – How should they do performance management procedures with Agile teams? This question is an important one because when we talk of making Agile systems work in a company, it usually comes down to how well they have been adopted and adapted to by the people.
What does performance management for Agile teams entail?
Performance management for an Agile team is more than just the half-yearly or annual appraisal cycle. It is also about giving performance-related feedback to the teams in a speedy, actionable, pertinent, and transparent manner.
Since we’re talking about teams, it is important and obvious that the manager needs to focus on motivating teams rather than individuals. Apart from that, concentrating on Agile values, making them resonate with the teams, and working towards changing performance measurements to aid rather than refute them is another goal for an Agile manager.
Here are a few tips that can help Agile managers carry out performance management practices more effectively…
Watch out for the Outcomes
While many managers may be tempted to start with measurable elements, it is more important to focus on the desired outcomes. Simply measuring what’s easy may not give you the real picture. The right measurements result in the right insights, which in turn, help in efficient decision-making that ultimately leads to the desired outcomes.
A manager cannot make informed decisions if he uses metrics and measurements that do not adequately represent the reality, as they wouldn’t provide him with proper insights. In order to make a difference to the team performance for the better, the manager can provide coaching on the tools that his team is expected to use.
It’s about Providing Feedback
Many traditional managers would probably think of performance measurements as a lever to motivate behavior, but most successful Agile projects are a result of taking frequent and holistic feedback.
While feedback is sought to improve upon your own existing performance levels, levers are used to influence others’ behavior. The difference between the two becomes evident when you see how you use the measure, rather than evaluate the measure itself.
Agile managers have a role to play in this –
- Provide frequent and honest feedback to teams. Instead of waiting for the annual cycle to complete, recognize their efforts as and when you can and provide positive feedback accordingly.
- Do 360-degree reviews, i.e. look for opinions from various sources like team members, ScrumMasters, product owners and stakeholders.
- Conduct formal meetings about performance improvement on a monthly basis, which would require feedback from ScrumMasters to their peers.
Because feedback comes from real people, it would provide you with the reality of the situation and you (along with your team) can make the necessary adjustments accordingly.
Salaries and Bonuses
One of the most critical aspects that teams look forward to in the performance management cycle is the adjustment of the revised salaries and bonuses. This factor is probably the one that keeps teams most interested in the process.
Agile managers would do well to keep the following pointers in mind in this regard –
- Try to keep compensation differences to a minimum.
- Apart from the performance levels, do take into consideration the current market averages and annual inflation.
- Sometimes allocating the bonuses to the team and letting them decide the shares also works.
- Allocate bonuses only as a reward for exceptional performance, not as a norm. Try to keep the amounts nominal as you do not want it to become the dominant motivating factor going ahead.
Focus on the Future
One of the biggest advantages that organizations using Agile systems possess is that they become increasingly competitive, and can quickly adapt and respond to change.
When conducting performance management, Agile managers need to keep this in mind and consider the value that teams can bring to the organization in the future, rather than only focus on how they have performed in the past.
Future-ready teams will help ensure that organizations do not stagnate and always stay functional. Such a thought process should help managers evaluate employees more effectively.
Conclusion
While performance management concepts have always been around, it is the Agile approach that gives them a changed perspective and makes the execution different. Because Agile teams are interdependent, it is extremely difficult to measure individual performances and rate each employee objectively. Agile managers need to work closely with their teams, provide continuous feedback and review performance. The main focus should be towards increasing and improving the team’s collaborative performance, rather than that of individual team members.
