Performance Management. Essential to creating a developmental organization is the implementation of performance management processes at the organizational and individual levels. Performance management involves analysis and recognition of the reasons why employees fail to achieve desired results. Understanding these causes allows developmental managers to implement the principles of performance improvement and apply the performance alignment process (see Chapter 9). Successful implementation leads to performance greatness, a desired outcome for any individual and any firm.
Compensation and Reward Programs. Developmental organizations redesign their compensation and reward programs to support growth and development. Such a program rewards the "right things" (e.g., leadership, creativity, entrepreneurship, learning new skills, growth and development).
A critical characteristic of the developmental organization is its ability to be flexible, adaptive, responsive, and willing to change in order to meet long-term goals. Because change is inevitable, no single formula exists for making the transformation to the developmental organization other than the collective desire of all organizational members to be the best that they can be. Dedication and commitment to individual growth and development leads to the same outcome at the organizational level, along with achievement of desired long-term business results.
Developmental organizations require specific types of leadership, activities, philosophy, guiding principles, and focus. Their purpose is to enhance the organization's competitive readiness and renewal capacity. Finally, the developmental organization blueprint, consisting of five separate but interrelated components, serves as a planning tool that HRD professionals can use to achieve the goals of the developmental organization.