Small businesses have unique challenges in the performance management area. Lacking the resources of larger businesses, small business owners have to be creative in finding and implementing performance management tools for small businesses. The following are some tools that can be useful in running any business.
Goal setting is an important part of any performance management system. Performance management tools for small business, it is especially important to set realistic goals that can be accomplished with the available resources. SMART goals are a good way to set specific, measurable, achievable, relevant, and time-sensitive goals.
Another key element of performance management is tracking progress against goals. This can be done using various methods, such as charts and graphs tracking progress over time or better yet, a KPI tracking system that allows setting goals for KPIs, and tracking them to improve outcomes.
The tracking system should be simple enough to use so that the process does not get in the way of other work yet is detailed enough to produce useful feedback for managers.
Small businesses can use an “accountability chart.” This gives employees a list of goals for their immediate superior to keep track of progress against goals.
An accountability chart is used by creating an individualized accountabilities chart for each employee on your team. For each responsibility, you identify, determine what success looks like (the result you expect). Then set two measurable checkpoints (dates or events that will indicate if steps are on track) leading up to the desired result. Make sure both checkpoints provide equal weight; for example, you might want a 90% success rate on meeting deadlines but only an 80% success rate on customer satisfaction.
After the employee completes the task, they mark the date off on the chart. If either of the checkpoints is missed, both parties have a conversation about what went wrong and create a new plan to help the employee get back on track.
The accountability chart can also be used as part of your weekly team meeting. Review everyone’s chart together and discuss any progress made or steps that still need to be taken. This will keep everyone on track and headed in the same direction.
Some employees prefer more structure and feedback, while others prefer more independence. The key is finding a system that allows for individual and team success.
Many small businesses start without specific goals, but this can be harmful in the long run. Performance management tools for small businesses allow business owners to measure progress and make necessary changes along the way. Goals should be realistic, achievable, and challenging enough to motivate employees.
Table Of Contents
The important thing is to find the tools that work best for your specific situation and then use them regularly to achieve success.
Tracking progress against goals
Creating an accountability chart
Using goal setting as part of weekly team meetings
With a small business, you have to do your job well – and so does everyone else. That means being able to manage budgets, employees, customers, and more. Managers often spend a lot of time on administrative tasks that can detract from the performance of their staff or the success of the organization as a whole. Several software tools help you to manage your business better.