Today’s best managers understand the need for a plan that measures employee performance. The plan should help communicate the vision, mission, strategy and goals to employees. The plan should help define desired performance, motivate employees to perform, and help employees achieve their performance goals. An effective plan should: 1) identify and explain the performance criteria, 2) accurately measure actual employee performance, 3) be continually re-evaluated and updated, and 4) clearly let employees know what is expected of them.
Source: McCoy, J. 2008, July. Align performance with your strategy: Choosing the right team matters. Leadership Excellence, 25, p. 17.