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Reinventing performance management processes won’t unlock human performance. Here’s what will. - Deloitte

research_insightMarch 23, 2025 11 min read
performance management human performance organizational design technology integration

Editorial summary. This is our text summary of an article published by deloitte. Charts, figures, and the author’s full voice are at the original — read it there .

Editorial verdict

Strong evidence supported by comprehensive survey data. The 10,000-respondent Deloitte study reveals widespread performance management failure, but the 'engineering human performance' solution lacks empirical validation beyond anecdotal cases.

Executive summary

This article addresses the persistent failure of performance management systems, citing Deloitte's 2025 Global Human Capital Trends survey showing that 61% of managers and 72% of workers distrust their organization's performance management process, with only 2% of CHROs believing their systems work. The authors argue that decades of process reinvention have failed because organizations expect too much from a single HR process. They propose 'engineering human performance' as a holistic approach that integrates organizational design, technology, workforce practices, and workplace design beyond traditional performance management. The article presents case studies from WalkMe, Roche, AXA, and others demonstrating improved outcomes through comprehensive approaches. The authors conclude that organizations effective at enabling human performance are 2.08 times more likely to report positive financial results, suggesting that success requires moving beyond process redesign to systematic performance engineering.

reportRelevance: 9/10Global

Key insights

  • 1Only 2% of CHROs believe their performance management systems work, with 61% of managers and 72% of workers distrusting their organization's processes
  • 2Traditional performance management fails because organizations expect a single process to drive complex human performance outcomes that require multiple organizational factors
  • 3Organizations effective at enabling human performance are 2.08 times more likely to report positive financial results than others

Practical takeaways

  • Shift from process reinvention to holistic human performance engineering that includes organizational design, technology integration, and workplace practices
  • Use technology like GenAI to simplify performance management by identifying feedback providers, aggregating data, and detecting bias

Frameworks mentioned

Human Performance Equation

Framework requiring both business and human outcomes to support each other

References

  1. Deloitte (2025).Deloitte's 2025 Global Human Capital Trends survey.
  2. Gallup (2024).Gallup survey on CHRO performance management opinions.
  3. Betterworks (2024).Betterworks survey on performance review fairness.
  4. Deloitte (2024).Deloitte's High-Impact Total Rewards research.
  5. Rotterdam School of Management (2024).Rotterdam School of Management team effectiveness study.

Source & Provenance

Verified
Publisher / Source

deloitte

Author

Not specified

Publication Date

March 23, 2025

Article Type

Industry Report

Geography

Global

Content Type
Research Insight
Original Source

Original source metadata is preserved. AI analysis is generated separately.

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