Performance management in the UK, as elsewhere, is central to the debate about banks’ problems and their future. Banks have now made radical changes in their strategies, and they will depend on performance management to translate their changed objectives into action. The performance management cycle does this by broadly influencing organisational behaviour and performance, not just compensation. A good performance management process also includes and promotes constructive dialogue, focusing on business as well as individual performance. The banks will benefit from the improvement to behaviour and culture that a well-designed performance management process will deliver.
A Reality Check for Financial Services