Does Performance Management Differ from Talent Management?

Does Performance Management Differ from Talent Management?
from the Turning Good People Into Top Talent blog series


There appears to be many definitions of exactly what Talent Management includes. There are also a number of definitions of Performance Management (PM) and if it is a part of Talent Management (TM).

Performance management has been evolving from simply appraising past performance to developing future potential. I take the position that Talent Management is focused on the people element and is critical if you truly believe talent is your organization’s most valuable asset. An effective talent management system can include all processes from the time a candidate for a particularly position has been identified and link him/her to a succession plan.

Therefore, Talent Management focuses more on the people element of the organization; whereas Performance Management is more about the overall alignment of various organizational functions towards shared vision, mission, and objectives.  However, some may want to include these elements within Organizational Development.  Regardless, it is essential for PM and TM to be connected and have Key Performance Indicators (KPIs) to help drive both the behavioral and cultural elements.  Many authorities agree it is the combination of PM and TM elements that makes a business successful.

Many organizations are beginning to integrate elements of PM and TM as separate components of one system. This type of integration can help to assure that performance is being managed with appropriate accountability for KPIs, while also assuring the creation of a culture required for the success of the enterprise.

My final comment is to be certain that performance is more than a historical appraisal of what has already happened. Ideally, performance management becomes a future-focused leadership function that improves capacity to accomplish more with higher levels of engagement and satisfaction.


Bob Moore, CMC®
CEO of Effectiveness, Inc. and
The Talent Management Institute
“Turning Good People Into Top Talent”




Previous Post

Managers Account for 70% of Variance in Employee Engagement

Next Post

How Do HR and Talent Management Practices Affect Organizational Performance?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.