Getting Performance Without Performance Management

I couldn’t agree more with your conclusion that, it is harder to change old ways, if we keep the old names - and rightfully so, we had reframed “performance management”, as “performance engagement”, in one of my earlier hacks (http://www.managementexchange.com/hack/reforming-performance-management-systems-%E2%80%93-virtual-purpose-equity-vizpity%C2%A9-exchange-way).

Why?

• Performance management, by and large, is motivated by the “sense of control” driven instincts, whereas, performance engagement, on the other hand is, motivated by the “sense of purpose” driven instincts, and hence, it is sustainable.
• Performance management, by and large, is driven by the unidirectional conversation (between a powerful person and a less powerful person, in a hierarchal relationship), whereas, performance engagement, on the other hand, is a bidirectional win: win conversation (among equals), which all the more motivates them, to collaborate willingly, to achieve the larger purpose of improving the performance of the organization, as a whole.
• Performance engagement, which is, mostly driven by the purpose driven motivational factors like, sense of purpose, mastery, autonomy, sense of belonging and loyalty – inherently, positions the organizations, in a solid footing, to get self managed, thus creating a self sustaining, closed loop eco system culture (e.g. our transparent purpose equity engagement platform, as explained below). As it turns out, this closed loop eco system culture, is the one that not only, accelerate both engagement & management to newer heights, but also, catapults organizational performances to newer levels.

• Note: By no means, we are suggesting that engagement, negates the need for management, rather, we are reframing performance engagement, as a reformed superset process, embracing all the positive tenets of the management processes (plus few more value-add engagement tenets) , thus making performance engagement, a cultural movement, that is all the more relevant for the 21^st century.

Our performance engagement approach, is different from the traditional performance management approaches, in the following five key ways -

1. First and foremost, our model is a TRIUNE PURPOSE EQUITY   driven model, wherein, we have augmented the traditional HUMAN CAPITAL (i.e. functional value + emotional value), with an additional, component called purpose value. Simply put - Purpose Equity = Functional value possibilities+ Emotional value possibilities + Purpose value aspirations, wherein,

• Functional value (IQ driven business results) that drives business result dimension of the performance, and are usually compensated with cash and its equivalents (base pay, bonus, stock options, benefits etc that is designed to provide the decent monetary security for the employees).
• Emotional value (EQ driven people results) that drives the people result part of the performance, and are usually compensated with grades, levels and titles, status etc.
• Purpose value (CQ driven business + people + cultural results) that is meant not only to drive, but also, to catapult both the business and people dimension results, to newer heights, by establishing a sustainable cultural context. These Purpose value aspirations are quantified (and compensated) using the following five KPI’s (three KPI’s from the MIT/UOC/CMU study and the remaining two from our research).

• Sense of purpose,
• Sense of autonomy
• Sense of mastery
• Sense of belonging
• Sense of loyalty 

2. Our model, is a “transparent engagement model” (as opposed to the traditional “confidential management model”) wherein, the PURPOSE EQUITIES are created by aggregating three value components of human resources/organizational entities, in the form of a “purpose equity index”, which then gets traded actively throughout the year, within a “purpose equity exchange platform”, that is governed as per the free market capitalism principles. As it turns out, this free market platform, is the one, that makes our model, not only transparent, but also, motivates organizations (and its employees) to align, trade, motivate, exchange, enhance, energize and execute their human resources (the single most important capability of 21^st organizations), in a sustainable manner.
3. Our model is an “active, round the clock engagement model”(as opposed to the traditional “passive year-end management model”), wherein every employees, teams, business divisions (and even companies) can  come together, and continuously evaluate and trade each other’s purpose equities throughout the year, against their pre-established objectives, (and against their self evaluated purpose equity scores) on a daily basis, so that this purpose equity stock exchange, can eventually become the primary performance platform of choice, for employees and employers to hire/fire/promote/retain/exchange/reward everyone in proportion to their composite purpose equity indices, at any point in time of the year. 
4. Our model, inherently helps leaders to pick and choose the right type of resources, for the right type of assignments, in their key resource allocation decisions. In other words, it helps leaders, to staff certain high impact initiatives, (that might need purpose value more than functional/emotional values), with right type of human resources, thus catapulting business performances, altogether to a newer level.
5. Last, but not the least, our model also inherently helps leaders, to complement/supplement purpose value driven resources, with functional/emotional value driven resources, as we all know the key HR principle, that five smart people, with similar type of skills, talents and gifts, may not necessarily, get the job done. In other words, it helps senior leaders to supplement functional and emotional value driven resources with purpose value driven resources, at various granularities (i.e. at the employee, team, business division and even at the corporation level).