I have broken down the performance management recommendation into 3 overarching points and provided detail in each one.
1. Define performance.
a. Set goals for the company
Mr. Stonefield will need to set goals for the company as a whole. These goals include growth of net revenue, employee performance standards, and strategic direction of the company. For example, for performance standards to measure accurately, each of Mr. Stonefield’s employees needs to understand and sign off on the standards he or she is expected to maintain that align with the company’s overall strategic goal. Goals also need to have a way to measured and assessed. If Mr. Stonefield expects his employees to maintain a level of customer satisfaction, for example 85% or higher, he will need to survey his customers to gain knowledge of their experience and then review the surveys with the employees. One of the goals that Mr. Stonefield mentioned was $50,000 net revenue in his first year. Fitting that with his company’s strategic goal of a 5% increase, Mr. Stonefield needs to analyze how his employees and he will get to $50,000 this year. For example, how many rentals (hourly or base) does each employee need to sell to get the company to $50,000?
Also, Mr. Stonefield should consider what it will take to have a 5% growth over a couple of years. Word of mouth is going to be important to growing his current clients, so picking the right employees to make customers come back is going to be very important (more on this in the next section.) Growth requires that Mr. Stonefield first meets $50,000 and then strives for more, and the employees should be given insight into how Mr. Stonefield wishes to achieve this. Furthermore, asking for their input would be a good idea considering they will be the ones with customers and they will be the first ones to hear a customer’s feedback.