3/14/2016 Performance Management for the 21 st Century Why do you - - PDF document

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Performance Management for the 21st Century

Why do you have a Performance Management Process?

Performance Management – as we know it today…

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Traditional Performance Reviews ￭ Success/failure communicated by ratings ￭ 1, maybe 2, conversations a year ￭ Backward looking ￭ Protect company by documenting performance

Is this working?

90%

Percentage of performance systems that are considered a failure

75%

Percentage of managers, employees and HR leaders that feel performance management results are ineffective or inaccurate

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2/3

Number of employees that are rated as top performers…but aren’t!

8%

Percentage of companies reporting that their Performance Management process drives high levels

• f value

So why are we doing them?

If almost no one thinks they are effective, does research tell us there is value?

“

The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgements made will be lawful, fair, defensible and accurate.

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50%

Percentage of employees surprised by rating

23%

How much engagement decreases when an employee was surprised by their rating

87%

Percentage of employees negatively surprised

25%

Percentage of rating acctually correlated to employee’s performance Influences on Performance Ratings

Random Error Rater Biases

Actual Performance

Org Perspective

62%!!

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25%

Percentage of rating acctually correlated to employee’s performance

Fight or Flight

Triggered in brain when being judged

ZERO!

Correlation between performance ratings and business unit performance

Now what?

Now that we know it doesn’t drive performance, what do we do?!?!

From

• m

Backward looking reviews focused on evaluting the employee

To To

Forward looking processes focused on goal setting and development planning

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From

• m

1 or 2 conversations a year

To To

Regular check-ins to discuss progress and make adjustments as needed

From

• m

Manager driven

To To

Employee driven

From

• m

Using ratings to inform success/failure

To To

Conversations about progress, challenges and needs

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From

• m

Using the process to document and address performance issues

To To

Using the process to focus on the employee’s success

“

I have yet to find a man, however exalted his station, who did not do better work and put forth greater effort under a spirit of approval than under a spirit of criticism.

• Charles Schwab

BWSC’s Journey

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BWSC – Where We Started

￭History of frustration with electronic processes ￭Standard Performance Review Form ￭Twice a year ￭Limited participation from leaders or employees

BWSC Year One – Process & Tools Development

￭Building process ￭Providing tools and development to managers ￭Mid-year and Year-end Talent Conversations framework ￭Implemented Performance Navigator for 2016 commitments, development planning and feedback

Performance Navigator

￭Performance Commitments (goals) ￭Values feedback ￭Career Interests ￭Development Planning

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BWSC Year Two – Evaluation & Improvement

￭Evaluate quality of goals (commitments) and development plans ￭Receive feedback from leaders and employees on the process and form ￭Create additional tools/development for managers and employees to improve quality of conversations ￭Implement a Talent Review process with leaders to begin to identify HiPos and critical positions

BWSC Year Three – Full Implementation & Beyond

￭ Continue to focus on talent conversation’s skill development ￭ Continue to evaluate lessons learned and feedback ￭ Move from quarterly conversations to monthly conversations ￭ Automate documentation process ￭ Evaluate effectiveness of talent conversations

Overview

Year Focus 2015 Process Development 2016 Evaluation and Improvement 2017 Full Implementation 2018 Electronic Tracking Goal Planning with Development and Learning Plan Ongoing Talent Conversations Talent Reviews and Succession Planning Year-end Talent Conversation

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Performance Management – as it can be…

Thank you!

Any questions?

You can find me at: Tiffany.coursey@bwsc.net Twitter: @TICoursey

Sources

Global Trends in Human Resource Management, Deloitte, 2014, http://dupress.com/periodical/trends/global- human-capital-trends-2014/?icid=hp:ft:01. Putting the “Performance” back in Performance Management, Society for Human Resource Management and Society for Industrial and Organizational Psychology, 2015, https://www.shrm.org/Research/Documents/SHRM-SIOP%20Performance%20Management.pdf To Rate or Not to Rate? That Isn’t the Right Question, SHRM, 2015, http://www.shrm.org/hrdisciplines/staffingmanagement/articles/pages/performance-rate-or-not.aspx. One Simple Idea That Can Transform Performance Management, Dr. David Rock, Dr. Josh Davis and Elizabeth Jones, Published in People & Strategy Volume 36, Issue 2, 2013. Why Adobe Abolished The Annual Performance Review, Business Insider, 2014, http://www.businessinsider.com/adobe-abolished-annual-performance-review-2014-4. Reinventing Performance Management, Marcus Buckingham and Ashley Goodall, Harvard Business Review, April 2015, https://hbr.org/2015/04/reinventing-performance-management. Understanding the Latent Structure of Job Performance Ratings, Steven Scullen, Michael Mount, Maynard Goff, Published in the Journal of Applied Psychology, 2000, Vol 85, No 6, http://www.rc.usf.edu/~jdorio/Performance%20App/Scullen,%20S.%20E.,%20Mount,%20M.%20K.,%20&%2 0Goff,%20M.%20(2000).pdf Still want more…here are a few companies moving away from traditional performance processes that you may want to research: Adobe, Deloitte, Expedia, Motorolla, Kelly Services, NY Life, Microsoft…to name a few.