Agile performance management is a collaborative, continuous feedback and development practice that is steadily replacing traditional performance management.

Traditional performance management has proven to be insufficient to assess an employee’s contribution. Its primary focus is setting up a series of processes to measure the employee’s performance over the whole year. These processes end up having an unanticipated effect of managers focusing on employee’s weaknesses. It is difficult to distinguish performance, except for the truly poor performers or high achievers. Being a year long process, below par or mediocre performers can’t be identified early on. Once a year performance review, with little to no feedback, gives no scope for development to the employees or the managers.

There needed to be a more dynamic performance management practice that could evolve and adapt according to the changing environment. Thus, Agile performance management was introduced. Its three key aspects are regular feedback, communication and coaching. These aspects bridge the gap between goal setting and performance evaluation.

Agile performance management focuses as much on the process as the end goals. Continuous improvement is the key.