SGR is the best Performance management system

Recently, I had a chance to meet the Director of large company & discuss with him the state of Performance Management System in his company. The discourse did not surprise me at all but what surprised me was the level of pain & anguish about why is there not a single but easy to execute PMS that takes care of all the challenges that industry as a whole is facing since so many decades. I tried referring to some of the commonly used PMSs like Balanced Score Card, OKRs etc but he said that all these may be good in theory but in reality, far from being easy to comprehend by masses in general and use them. He revealed that the route that he and other senior executives have adopted is whatever performance ratings are recommended by functional managers for their employees, he would reduce them by a notch or two without even looking at the merits of these recommendations. He added that even people know it well that all these performance ratings are inflated much beyond accepted norms and are not justifiable in any way but if accepted as it is then may lead to unviable increase in workforce cost. He was subconsciously referring to the commonly ‘misused’ concept of ‘Normalization’, companies resort to when functional managers do not bring their recommendations down within the prescribed limits.

The Challenge is really big as the workforce cost is large enough for organizations if not managed well & carefully it may lead to their bleeding.

The Director was pointing to a very practical reality. He deserves an answer from HR professionals, as others may look for as well.

Then comes the Strategy, Goals & Review [SGR] Performance Management System, a well-researched & copyrighted concept.

SGR can feel like “the best” because it strips performance management down to its essentials.

Let us break down why this approach is so effective compared to more complex frameworks:

Core of the SGR System

  1. Strategy
    • Everything begins with a clear organizational strategy.
    • Ensures that performance management is not just about individual tasks but about driving the company’s vision forward.
  2. Goals
    • Strategy is translated into specific, measurable goals at team and individual levels; perfectly aligned with the top and runs down to the last employee.
    • Employees know exactly what they are working toward by having clarity on business strategy of either increasing growth & profits directly or indirectly in a particular year or a period and how it connects to the bigger long-term goals.
  3. Review
    • Regular reviews is simple and effective whether conducted monthly, quarterly, or continuous check-ins, ensure progress is tracked & well recorded.
    • Feedback loops allow for course correction, coaching & recognition.

Why It’s Considered “the Best”

  • Simplicity: Unlike Balanced Scorecard or OKRs, SGR avoids complexity and jargon.
  • Alignment: Directly ties individual performance to organizational strategy through the easily used and understood business terms of Growth, Profit, Effectiveness and Efficiency.
  • Clarity: Employees see a straight line from strategy, Goals and Review
  • Agility: Reviews allow quick adjustments to changing business conditions.
  • Engagement: Employees feel connected to the mission and supported through regular feedback.

Comparison with Other Models

The SGR Performance Management System is often seen as “the best” because it cuts through complexity and focuses on what matters most:

  • A clear strategy,
  • Well-defined goals,
  • Regular reviews to keep everyone on track.

It is especially powerful for organizations that want a straightforward, universally applicable system without the overhead of more complex frameworks.

Rajesh Tripathi, the CEO of Prajjo - Kenbox Technologies who has developed this concept and has the copyright in his name. The concept is used by Prajjo and is offering the AI-centric Solution widely used by organizations.

 

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