Corona has brought new working models and a different management to the companies. Even if prominent companies are „bringing some employees back“ to the offices, working from home remains firmly anchored in many companies, confirmed by a German study by the Ifo Institute[1]. Hybrid models are able to combine the wishes of companies for at least constant productivity and employees for a better work-life balance.

The experience with working from home is characteristic of the changes in the company that have to do with digitization and AI. A new technical platform is only the prerequisite for digital working. Other factors determine whether the new technology becomes a success factor.

The success factors for digital transformation

Technological change becomes productive when companies become fast-learning and adaptable organizations. A willingness to change, an entrepreneurial culture, participatory leadership, data-protected decisions, a culture of constant learning and a critical, respectful feedback culture are the most important success factors for a successful digital transformation. The study „The adaptable Business“ [2] by Oracle and the Otto Beisheim School of Management has worked out these factors well and evaluated them with productivity potential.

Key points for performance management in the digital world

For me, the success factors for technological change and performance management go hand in hand. In the study „Harnessing the power of performance management“[3], McKinsey identified effective coaching by managers, business-relevant and prioritized goals, and differentiation in compensation as the main factors for employee and organizational productivity. The reason is that these elements positively evaluate the fairness perceived by employees in their dealings.

A new performance management system addresses these three points and lays the foundation for the success of the technological transformation. In the following chart, I have summarized my view on the changes in performance management. It describes the development from transactional to transformative performance management, or rather my view on it.

In this blog, I’ve covered many of them, such as my posts on a performance review approach  focused on employee development, leadership, and organization, a SWOT analysis of the OKR model, and my feedback conversation guide. In my workshops on performance management,  we also address the other points intensively and according to your needs.

As always, I look forward to feedback, your view on this.

[1] https://www.ifo.de/fakten/2024-03-04/homeoffice-deutschland-fest-verankert

[2] https://go.oracle.com/LP=100147

[3] https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/harnessing-the-power-of-performance-management