Performance management has three elements—planning, day-to-day coaching, and evaluation. When I ask managers which of these elements takes the most time, they almost always say evaluation. Sometimes I hear long statements full of frustration about the forms, activities, and deadlines involved in the evaluation process. It makes me realize that people are putting the emphasis on the process—not the performance. And that is where many managers make the wrong choice.

Effective managers should spend most of their time on day-to-day coaching. Let’s take a closer look.

As a leader, it’s true that you have to spend time up front to set clear goals. Once you’ve completed that part, however, your job is to be there to coach your employees and help them accomplish those goals. I think of it as turning the traditional hierarchical pyramid upside down so that you work for your people. You are there to help them.

If you spend most of your time coaching your people and helping them succeed, what do you think happens when it is time for the evaluation? You get to celebrate accomplishments! When you help your people win, you win, your department wins, and ultimately your organization wins. That’s why I say coaching is the most essential part of performance management.