We all know that performance management programs are an effective management tool, and when used properly, can drive specific results. These programs come in many flavors and with a wide range of objectives. In some organizations, these programs drive the rewards (as well as consequences) received by employees. In other organizations, they drive the communication and goals of the organization to each individual contributor. Sometimes, they provide a baseline upon which to measure gaps and define the target needs of the organization. And, the programs may simply serve to provide an annual reminder to meet and discuss the individual instead of the department objectives – very important in some fast driving departments that easily forget the importance of the individual in their rush to market. Nonetheless, the majority are goal-oriented and seek to communicate the goals of the organization while providing a written measure of employee performance.

Regardless of the emphasis, performance programs strive to drive results through the organization, yet most organizations agree it’s either too difficult to measure the impact or they choose not measure it at all. Why is that? Simply stated, what seemed to work yesterday doesn’t seem to work as well today. Today, the world recognizes that to adapt to the faster pace and to embrace change as a tool is critical to success.

Times have changed drastically in recent years, yet many initiatives have not. And, most leaders find that getting the desired behavioral changes from an organization that seeks a higher degree of efficiency, productivity or flexibility from employees is challenging regardless of how you approach the problem. There is a natural, collective resistance of the workforce to change.

Today’s leadership challenge is to break the habit of focusing on measuring and developing individual leadership qualities in isolation of the broader corporate objectives. One common thread of organizations that succeed today is their ability to drive corporate results. How do they do that? They find the latent potential and use it! These organizations have discovered how to address corporate needs by driving positive behavior changes through the use of goal-directed improvements. These goal-directed changes are driven by the employees’ desire to improve skills, knowledge and attitudes to achieve those goals. In turn, when these positive action-oriented behaviors focus on improving corporate results, each employee knows they are responsible for some part of the aggregate success. In other words, today’s leaders need to focus entirely on developing the corporate ability to set goals and more importantly monitor how the related actions achieve corporate results.

Think of it this way. The imperative for each leader is to demonstrate a proficiency for a goal-setting process that leads to achieving specific desired outcomes. The better each individual becomes in achieving goals, the greater the power of the organization to adjust and adapt. Of course, this process relies on a proficiency for developing SMART goals – both personal and organizational with a clear supporting action plan for each goal.

The difference is to have employees define goals not only in context of the rewards they can achieve but also on the consequences of non-performance. In other words, they use a goal setting process where the employee (not just management) learns to articulate what happens when they do and do not meet their goal commitments. Employees gain more ownership of the commitment while developing insights into the business during discussions with supervisors and peers. In many cases, employees nominate themselves for creative actions that benefit the company because management isn’t putting a box around their efforts. This is how to find latent potential.

Employees value success and can easily align their goals when provided with a clear strategic direction. You know the strategic direction isn’t clearly understood when you see symptoms like excessive meetings, consensus decision-making behavior, lack of personal accountability, recurring schedule delays, personal conflicts/power struggles, reactive rather than proactive thinking, unproductive teams, duplication of effort or uncoordinated efforts, and difficulty terminating poor performers. When meeting organizational results are recognized at all levels, these symptoms disappear and the untapped potential begins to emerge. After all, success begets success.

Renee Lewis is president of Pensare Group, a consultancy specializing in helping organizations and its leaders achieve measurable results by harnessing the potential within. She can be reached through their website at www.pensaregroup.com.