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[Music] foundations are important and perhaps one of the most important foundations upon which a performance management system is built is the performance contract the document that sets out in clear terms the performance expectations of an employee it is not only the document itself that is important but clearly also the process that created that document and very importantly the process that gives it life how it is applied in the organization and how it evolves over time performance contracting is all of these processes rolled up into one and when done properly it puts line managers and employees on a firm footing to drive personal and organizational performance unfortunately in real life we have a lot of dysfunctional work relationships ineffective strategies and broken performance management systems because the process of performance contracting was itself ineffective it is quite common for example that performance contracts are not strategy aligned they do not have a clear linkage