Performance Management System Design

Design and implement performance management and employee development systems

Startup Cost
$10,000-$50,000
Difficulty
Advanced
Time to Profit
10-20 months
Profit Potential
$15,000-$100,000/month

Overview

Performance management consultants charge $125-$300 hourly or $20,000-$150,000 per implementation.

Serving 10-30 organizations generates $180,000-$1,200,000 annually with 70-85% margins.

In 2025, companies modernize performance management from annual reviews.

Revenue from performance management system design ($25,000-$150,000), competency and capability frameworks ($15,000-$75,000), manager training on performance conversations ($5,000-$25,000 per program), performance technology implementation, ongoing facilitation and optimization, and performance culture change consulting.

Approaches include continuous feedback and check-ins, OKRs and goal-setting frameworks, 360-degree feedback systems, performance calibration, and development planning.

Successful consultants design modern performance approaches, train managers on feedback and coaching, implement performance technology platforms, facilitate performance calibration, and measure impact on performance.

Mid-size to large organizations as clients.

Marketing through HR conferences, performance management thought leadership, HR technology partnerships, organizational development networks, and performance transformation case studies.

Required Skills

  • Performance Management Design
  • Organizational Development
  • Manager Training & Coaching
  • Change Management
  • HR Technology
  • Measurement & Analytics

Pros and Cons

Pros

  • Large implementation project fees
  • Companies rethinking traditional performance reviews
  • Training and ongoing facilitation revenue
  • Performance management critical HR function
  • Can partner with HR tech vendors

Cons

  • Need organizational development and PM expertise
  • Long sales cycles for large implementations
  • Change management challenges with new systems
  • Manager adoption and behavior change difficult
  • Competitive OD and HR consulting market

How to Get Started

  1. Build performance management and OD expertise
  2. Develop modern performance management frameworks
  3. Create manager training programs
  4. Market to HR and talent leaders
  5. Design performance management systems for clients
  6. Train managers and facilitate implementation
  7. Measure impact and optimize performance culture

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