What is wrong with the traditional performance management systems?

Articles - May 1, 2018

What is wrong with the traditional performance management systems?

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What is wrong with the traditional performance management systems?

Traditionally performance management has been a data intensive exercise, both for the evaluators as well as the evaluated. Performance data is calculated at the end of the cycle (monthly/ quarterly/ bi-yearly) to assess the back-ward looking performance of an individual. There are no measures to engage the employee with his performance at an early stage (in between the cycle) and to motivate him for performing against his weak areas. A traditional performance management system hence becomes a boring report generation system for the employees. 

GameChange Solutions is disrupting the landscape of traditional performance management by engaging the users in their own performance metrics and fun-based learning games. GameChange Solution’s gamified performance management solution – BitNudge acts as a motivation and engagement platform for the employees. 

The invention is aimed at improving employee productivity / performance and engagement at the workplace. BitNudge is designed with the belief that greater the employee motivation at the workplace the higher would be the performance and engagement levels. The closest use case of BitNudge is in Sales and Operations function where BitNudge can be deployed to improve frontline productivity or back/ middle office efficiency.

Unlike the conventional performance management system, BitNudge records inputs as well as outputs of the users. In other words, BitNudge focuses on both the “How” as well as the “How much” while calculating the performance of the users. Traditional performance management systems follow a “one-size-fit-all” type solution for all of its users, while the Gamified performance management solution follows a segmented approach for the performance management of its users – different types of users are treated differently on the gamified system to help them achieve their own inflection points.

Traditional performance management systems are typically designed keeping the manager in mind. They provide a comprehensive and detailed dashboard for managers to view the performance of their reportees. However similar dashboards do not add value for the frontline employees. The gamified performance management system is designed as an agent information system – it provides high frequency updates like point scores, ranks, badges, levels to the players which keep them engaged in their own performance.

Traditional performance management methodology has a binary state of play for its users. The users work for a two-state output in a traditional PMS – qualified for earning incentives OR not qualified for incentives. The user stops working for the sales cycle as soon as he assesses that he is not going to qualify for the incentives in that cycle and carries forward the business (leads) to the next sales cycle to maximize his probability to earn incentives in the next cycle. This leads to a delay in the sales as well as service of the customer on Bank’s behalf. A gamification system checks this behaviour among the users by creating multiple states of play. There are multiple interim statuses that are assigned to the user based on his past performance (rewarding consistency). The user in a gamified system is also motivated to maintain his status and hence maintains his consistent performance across the sales cycles. 

Overall feedbacks are not captured in the traditional performance management system. Largely the feedback is a one-way monologue (from manager to reportee) depending upon the backward-looking analysis of the employee performance. Also, there is no reporting and analytics on the activities performed/ time spent by the resources in learning and capability building. A gamified system features an overall (360 degree) feedback, which covers the feedback from all managers, peers as well as the social graph of the user. Gamified system also provides predictive and prescriptive analytics for the employees. Fun based learning systems are also a part of BitNudge.

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