From Process to Purpose
Reframing Performance Management Around Mindset and Impact
The Shortcomings with Performance Management
Whether due to unreliable metrics or management bias, the performance management process has rarely delivered on expectations. Despite regular upgrades and refinements, there is an ongoing lack of trust and transparency in the process.
This unreliability stems from several factors. Frequently carried out in isolation, annually or biannually, the performance review is often a-moment-in-time marker, driven by a qualitive assessment of how well a set of objectives have been met. These infrequent reviews traditionally focused on evaluation of past performance with little future focus or coaching. With a manager or team leader driving the process, the review is regularly subject to bias and subjectivity, coloured by the reviewers own skill sets or the degree to which they value that attribute.
Overemphasis on compliance and metrics (e.g. billable hours) has left little room for nuance and fails to consider whether the performance has aligned to the overall strategy of the firm or has contributed to the team performance.
Like most aspects of the people management programme and indeed the wider profession, the availability of rich data and intelligent tooling provides room to consider the optimum approach that would align people process and strategy in a continuous loop with the agility to refine and pivot according to business needs. The degree to which this is embedded within a firm will defer according to size and demands, but the trajectory will be aligned.
“Last year, with the help of our data specialist team of Control & Navigate, we started making performance visible within the organization through data insights, as well as understanding the role employees play and their individual responsibilities. We helped employees recognise the impact they can have, not only on their specific part of the process but also on the overall success of the company—beyond departmental boundaries, across the entire process from start to finish. In addition, we also focus on the personal development of employees by providing leaders with the tools they need to effectively coach and guide their teams in their growth and development”
Rosemarie Ouwehand, Externe Accountant, Vallei Audit
Drivers of Transformation
Employees increasingly seek meaningful work. The prevailing narrative extols the virtue of fulfilment and making a difference beyond your immediate remit. Curiosity, adaptability, and resilience are being prioritised. There is a transition from the compliance model of measuring performance based on predefined standards, targets, billable hours etc. to a future focused model.
Employees now expect continuous feedback, and regular identification of ongoing development opportunities. The existing models worked off static KPIs and rigid cycles that are no longer aligned to the needs of an evolving business. In the same way that the ‘point in time’ evaluation model no longer serves us, the leadership model is also transforming as leaders shift from evaluators to coaches and culture carriers. Theres also the rise of ethical, social and environmental goals that must now be aligned to the purpose of the team and individual team member.
The digital transformation has facilitated access to advanced data collection and analysis, creating the potential to overhaul this much-maligned aspect of people management. The breathing space has allowed leaders to consider the value and purpose in performance. How do we make it more transparent? How can it be made fairer? How can we move forward and meet our strategic objectives together?
A fresh approach to performance review considers the collective and how well aligned the performance of the team is to the overall purpose of the firm in a continuous loop of review and coaching. It drills down to the performance of the individual in so far as it aligns to the purpose of the team and in turn the firm.
The emergence of a purpose driven model hopes to achieve what countless initiatives have failed to do. That is, to deliver a human centric model of management performance that is widely trusted, based on purpose and alignment to cultural and strategic goals.
These changes are not happening in isolation. Broader trends in advisory, digital transformation, and behavioural learning are strategic, data-driven, and human-centric. Performance management is evolving from an unavoidable element of people management to a strategic enabler of business success, with a shift in focus from judging past performance to enabling future growth.
The Journey to a Purpose Led leadership model
Purpose-driven performance management is not an HR initiative; it is a strategic imperative. Aligning individual purpose with organisational goals strengthens engagement, agility and long-term value.
When purpose becomes part of the conversation, we see a clear increase in employee engagement. People feel more connected to the bigger picture and more motivated to contribute.
Vallei’s experience shows the power of this approach:
“When individuals are given the freedom to own their performance, it creates a culture of continuous learning, engagement and collaboration, ultimately driving both personal and collective growth.”
Rosemarie Ouwehand, Externe Accountant, Vallei Audit
Building a purpose led model
Moving from process to purpose isn’t about scrapping everything overnight. It’s about creating a framework that aligns individual goals with organisational strategy, while embedding empathy and collaboration at its core.
Start with Conversations
Rouse Partners LLP began by equipping managers and employees with simple tools: one-page conversation starters for topics like wellbeing, performance and career development. These weren’t scripts, they were prompts to help people talk.
“People often don’t know how to start,”
Katie Newell, HR Manager, at Rouse Partners LLP
“Managers say, ‘Go away and think about what you want,’ and employees walk away thinking, ‘I don’t know what I want.’ It’s stalemate. So, we gave them tools to coach.”
The conversations are employee-led, not policy-driven. Employees initiate discussions when they need support or clarity. Managers provide guidance and set expectations. And frequency is flexible: new starters might meet weekly; others, less often. The only rule? At least one career conversation a year.
Rosemarie echoes this emphasis on dialogue:
“We create space for conversations several times per year. These are not only performance reviews, but opportunities for employees to reflect on their personal purpose and how it connects with the mission of Vallei.”
This shift from rigid cycles to continuous feedback is powerful. It creates space for real-time course correction and development. It also reframes performance as a shared responsibility, not a top-down judgment.
Embed Purpose
Purpose-driven performance management goes beyond fixing appraisals. It asks: how does each person’s work connect to the firm’s mission? For example, a tax professional might define their purpose as “simplifying complex regulation to empower clients to make sound financial decisions.” That aligns with a firm’s strategy to enhance client experience and drive innovation.
When individuals see that link, engagement soars. Performance becomes more than meeting KPIs, it becomes contributing to something bigger.
Map the Journey
Here’s a roadmap for firms looking to make the shift:
1.
Define vision and purpose
What does success look like for your firm and your people?
2.
Build supporting tools and processes
Conversation guides, feedback loops, and development plans.
3.
Pilot and iterate
Start small, learn, and adapt.
4.
Identify key dimensions
Purpose alignment, learning and growth, continuous feedback, values-based leadership, wellbeing, inclusion, and team collaboration.
5.
Embed and evolve
Make it part of the culture, not a one-off project.
Rouse is already on this path. Their next step? Career mapping around behaviours, not just technical skills.
“We’re early in the journey,”
Katie admits.
“But we’ve changed the first point - how we look at performance. It’s not about being rated for a year. It’s about ongoing conversations.”
Measure What Matters
Traditional metrics like billable hours still have a place, but they’re not enough. Purpose-driven models need new indicators:
Client feedback and satisfaction
Strategic project involvement
Process improvement contributions
Knowledge sharing and mentoring
Engagement and potential, not just output
Rouse has introduced talent reviews to capture these insights. Managers discuss not only performance but potential, skills gaps, and engagement. It’s talent management without the spreadsheet just honest conversations that feed into strategic decisions.
Vallei is exploring measures like Employee Net Promoter Score, Collaboration Index and Psychological Safety Score, signals of connection and trust.
What’s Next
The shift from performance correction to performance enablement is just beginning. AI and digital platforms can support continuous feedback and behavioural insights, but they’re not a silver bullet. Rouse explored the market and found most systems still cling to traditional cycles.
“I’ve gone out to market and it’s not there yet,” Katie says. “Everything looks glamorous, but it still needs heavy admin. Culture comes first, then tech.”
Rosemarie shares this view:
“We believe that while AI can provide valuable insights, it is the human perspective that ultimately shapes the interpretation and application of these insights.”
Performance management is increasingly tied to ESG, DEI and ethical governance. Aligning individual purpose with these commitments strengthens culture and reputation. It also attracts talent, especially younger professionals who value impact as much as income. Rosemarie shares:
“In the next 3–5 years, I see purpose becoming even more central to performance enablement. Employees increasingly expect their work to be meaningful, and new generations entering the workforce are growing up with purpose as a natural expectation. Our role will be to grow in how we match individual purpose with the strategic goals of Vallei, creating alignment that drives both personal fulfilment and organisational success.”
Looking ahead, purpose will become even more central. Employees expect meaningful work, and leaders must match individual purpose with strategic goals. Performance management is no longer about ticking boxes. It’s about unlocking potential, aligning purpose and building resilience. The firms that get this right will not only retain talent, but they will also thrive in a world where adaptability and human connection matter more than ever.
The transformation from performance management to purpose focus begins when we crystalise our understanding of ‘What really matters’.