The conventional model of Performance Management puts too much emphasis on the performance indicators and not enough on the performer. It also assumes that performance is simply a matter of doing the right things: follow the formula and you will get the desired results. What it fails to acknowledge is that a) people are different - with different skills, attitudes, aptitudes, motivations, etc.; and b) outcomes are influenced by circumstances at least partly beyond the performer's control.
By shifting focus to the performer, Performance Coaching, turns the problem on its head: from "What are you (the performer) doing wrong?" to: "what can I (the coach) do to help you perform better?" It focuses on the hidden obstacles, the dynamics oi the interactions of the performer with her environment, the balance of motivation, passion, personal vs. corporate needs, etc.
Performance Coaching is an empowering discipline as well: it does not try to shoehorn performers into one-size-fits all formulas for success, but instead provides performers with tools, frameworks, and support to help them become self-managing and learn to overcome their own challenges. It assumes that when people are properly motivated they are much better at finding ways to shine than when they are simply told what to do.
The first step is to teach managers about the dangerous assumptions underlying the classical Performance Management model: how it disempowers the performer, how it ignores drive and motivation, how it equates personal performance with corporate outcomes, how it ignores environmental factors. Managers have come to realise that people are not machines that can be fine-tuned by twiddling a few dials and tweaking some weaknesses. People are natural-born problem solvers with a great capacity and desire to tackle and overcome challenges and get great satisfaction from achieving outcomes they can relate to.
The second step is to teach managers the basics of the coaching approach: the difference between helping and coaching; the interplay between motivations, rewards, and incentives; some basic coaching skills. Not all managers will be able to make the transition, nor should they be forced to. Some people are better at managing: tracking performance indicators, calculating budgets, monitoring progress, etc. others are better at coaching. But many managers may not even realise their potential skills as performance coaches until they get exposed to this new paradigm.
In practice, performance coaching can start with as simple a question as "How can I help you achieve better outcomes?" And have an open, explorative, and collaborative discussion around the work of the performer and the many factors that influence performance. By looking at what works well and what creates challenges and tension, as well as at the performer's own assessment of her strengths and weaknesses, and how expected outcomes relate to personal motivators, the coaching manager can help the performer reassess their own performance. This assessment can then be the basis of some simple goal-setting in which both the manager and the performer take some responsibility for one particular issue, problem, or factor to work on. Don't do more than 1: go for small but clearly defined steps.