The performance improvement process begins with a comparison of the present and the desired levels of individual and organizational performance to identify the performance gap. A cause analysis is then done to determine what impact the work environment (information, resources, and incentives) and the people (motives, individual capacity, and skills) are having on performance.
Once the performance gap and the causes have been determined, the appropriate interventions are designed and developed. These may include measurement and feedback systems, new tools and equipment, compensation and reward systems, selection and placement of employees, and training and development. The interventions are then implemented and the change process managed.
Evaluation is done after each phase of the process. Initially, formative evaluation assesses the performance analysis, cause analysis, intervention selection and design, and intervention and change phases. Then evaluation focuses on the immediate response of employees and their ability and willingness to do the desired behaviors. The final evaluations are centered on improvement of business outcomes (such as quality, productivity, sales, customer retention, profitability, and market share) as well as determining return on investment for the intervention.