In my ongoing quest for sustainable and effective change in organisations, I found the commentary from HBR and the CIPD on the history and the evolving focus of performance management very interesting. Performance management is such an important cultural lever because it's so often linked to pay and progress and therefore people pay attention and adapt behaviour to what it measures. With the shift to real time, conversational performance management and away from annual rating, this puts even more emphasis on managers as culture builders and means we have to focus on improving their dialogue skills, helping them 'dial-in' to their people and their environment (see http://liquidchange.global) The shift gives us much greater opportunities to develop the teamwork and agility that all organisations crave. Helping leaders and managers be more 'liquid' is a crucial role for HR to play now, especially as they will be free from the administrative burden of managing the annual performance review process.
With the increasing sophistication of social enterprise tools such as workplace by Facebook, technology will play an important role in facilitating and supporting the ongoing dialogue that good performance management will require.
Identifying, engineering and shaping on 'significant trigger moments,' such as the death of performance reviews in your organisation, is crucial to making strides in shaping your culture.
There is less need for individual accountability and more need for development; there is a need for greater agility and shorter-term targets; and there is greater need for teamwork rather than individual performance.