5.4 Performance & Impact

Performance management is the Quality Control (QC) system for the organization's human capital. Just as we do not accept undefined tolerances in manufacturing, we do not accept undefined performance standards for people.

This process is not an administrative ritual. It is a data acquisition cycle designed to answer two questions:
1. Did the individual deliver the assigned Missions?
2. Did the individual maintain their Standard Work KPIs?
The objective is to make performance Measurable, Auditable, and Predictable.

The Quarterly Cycle (The Rhythm)

A year is too long to wait for feedback. In electronics manufacturing, waiting 12 months to fix a defect ensures bankruptcy. Therefore, Dannie.cc operates on a Quarterly Performance Cycle.

Week 1 (Mission Definition): Manager and Employee agree on the specific Missions and KPIs for the next 90 days.
Week 6 (Mid-Quarter Course Correction): A rapid check (15 mins). Are we on track? If not, do we change the tactic or the resource?
Week 13 (The Debrief): Formal grading of the quarter. Data is locked.

The "No Surprises" Rule:

If an employee is surprised by their rating or feedback during the Review, the manager has failed. Feedback must be continuous. The Quarterly Review is merely a summary of data points already discussed.

Setting Expectations: The "Mission" & The "KPI"

Performance is measured across two distinct dimensions. Every role must have both defined.

Dimension A: Run The Business (Standard KPIs)

These are the evergreen metrics required to keep the job "Green."

Definition: The baseline standard. If these drop, the system fails.
Example (Procurement): "Supplier On-Time Delivery > 95%."
Example (Engineering): "Jira Ticket Closure Rate > 10/week."

Dimension B: Change The Business (The Mission)

These are specific, time-bound projects derived from the Company Strategy (Chapter 3.1).

Definition: A specific outcome to achieve within the quarter.
Structure: One Mission has One Owner and One Deliverable.
Example: "Mission: Qualify Alternate Vendor for CPU. Deadline: Q3 End. Budget: $5k."

The Review Process (The Measurement)

The review quantifies the gap between the "Mission Order" and the "Actual Result."

Step A: Self-Reflection (The Defense)

The employee submits a written defense of their quarter.

Question 1: List the Missions completed. (Link to the artifact/evidence).
Question 2: Report on Standard KPIs. (Green/Yellow/Red).
Question 3: What blocked you? (Root Cause Analysis).

Step B: Manager Assessment (The Audit)

The manager verifies the claims against reality.

Output Audit: Did the Mission actually pass QC? (e.g., The vendor was qualified, but the price is higher. That is a partial fail).
Behavior Audit: Did they achieve the result while upholding the "One Dannie" values, or did they burn out the team?

Step C: Calibration (The Standardization)

Objective: Ensure "Exceeds Expectations" means the same thing for Manager A as it does for Manager B.
Mechanism: Managers present their proposed ratings; peers challenge them. Biases are stripped away through peer review.

The Ratings Scale (The Taxonomy)

We categorize performance into four distinct states based on Impact.

Rating	Definition	Action Required
Mission Commander (A-Player)	Delivers 100% of Missions + Improves the System.	Promote, Retain, Bonus eligibility.
Reliable Operator (B-Player)	Maintains KPIs Green. Delivers most Missions.	Develop, Retain.
Inconsistent (B-Minus)	KPIs fluctuate (Yellow/Red). Missions slip deadlines.	Performance Improvement Plan (PIP).
Non-Performer (C-Player)	Consistently misses KPIs. Negative ROI.	Exit.

Corrective Action: The PIP Protocol

When performance falls to "Inconsistent," the system triggers a Performance Improvement Plan (PIP).

A PIP is not a legal formality for firing. It is a formal "Get Well" plan with a tight feedback loop. However, historically, > 60% of PIPs result in exit. The employee must understand the stakes.

The PIP Template:

Status: [Probation]

Duration: [30 Days]

1. The Gap (Data):

Target: Weekly Output = 500 units.
Actual: Last 4 weeks average = 350 units.

2. Required Recovery (The Fix):

Restore Weekly Output to > 500 units by Week 2.
Clear the backlog of 45 aged tickets.

3. Check-ins:

Daily Stand-up review of previous day's output.

4. The Consequence:

Failure to sustain these metrics by [End Date] will result in termination.

Documentation Standards

Managers are legally and ethically obligated to document performance. "He's not doing well" is hearsay. "He missed the Mission Deadline by 14 days" is data.

The Mission Log: Every assigned Mission must be tracked in the project management tool (Jira/Asana).
The Artifact: Every Quarterly Review and PIP must be written and signed.

Quarterly Performance Review Template

Use this structure for the written review.

QUARTERLY DEBRIEF: [Q1/Q2/Q3/Q4]

1. KPI Scorecard (Run the Business):

Metric A: [Target: 98%] vs [Actual: 96%] -> Status: YELLOW
Metric B: [Target: <24h] vs [Actual: 12h] -> Status: GREEN

2. Mission Review (Change the Business):

Mission 1 (Title): [Complete / Incomplete]. Notes: Delivered 1 week late.
Mission 2 (Title): [Complete]. Notes: High quality execution.

3. Values & Behaviors:

Observation: Demonstrated "Ownership" by staying late to fix the server crash on Oct 12.

4. Manager’s Verdict:

Rating: [Reliable Operator]
Next Quarter Focus: Improve consistency on Metric A.

Final Checklist

Control Point	Requirement
Frequency	Quarterly. Annual is too slow.
Goal Clarity	Must have Standard KPIs AND Strategic Missions.
Data Source	Review must cite real data (Yield, $, Days). No feelings.
Calibration	Ratings must be peer-reviewed by leadership before publishing.
PIP Trigger	Immediate trigger for Inconsistent performers. Timeframe: 30 days.
Documentation	All ratings and PIPs must be written and signed.
Mission Link	Individual Missions must clearly link to Company Strategy.