SLIDE 1 The Impact of Performance Management
Frazer Rendell – Chair, Performance Management Sub Group, Engage for Success. Director, e-trinity. Grahame Russell – Founder & CEO, Change Associates
SLIDE 2
Performance Management Engaged Employee Improved Performance
SLIDE 3 The Impact of Performance Management
SLIDE 4
SLIDE 5
Performance Management What’s the point?
Octagon Research Series 2015
SLIDE 6
“most CEOs admit that performance management is a weakness in their business.”
SLIDE 7
The six reasons why Performance Management fails in many organisations
1.PM has become an overloaded administrative process driven by HR
SLIDE 8 “Performance Management needs a complete re-think. For too long it has been dominated by the need of HR to produce a number; business needs it to be much more simpler and to add value to their agenda not that
Toby Peyton-Jones, HR Director, Siemens plc
SLIDE 9 “The process is fundamentally
- flawed. As a profession HR
typically looks to create a process solution that joins up everything that performance management is trying to
- achieve. This fundamentally
misses the point in that what we are trying to do is meet the needs of individuals who don’t respond well to being shoehorned into a one size fits all process”
Lucy Adams, MD at Firehouse Productions Ltd and former HR Director for the BBC
SLIDE 10 The six reasons Performance Management fails in many organisations
- 1. PM has become an overloaded administrative process driven by HR
- 2. PM meetings happen too infrequently
SLIDE 11 “in a fast moving company like Superdry, priorities change
- weekly. If someone is working on
- pening a store in Italy, then
France is no longer a priority, so
- bjectives can quickly become
- irrelevant. In agile firms, its about
developing people to do a good job; it must be continual.
Andrea Cartwright, HR Director Supergroup plc
SLIDE 12 The six reasons Performance Management fails in many organisations
- 1. PM has become an overloaded administrative process driven by HR
- 2. PM meetings happen too infrequently
- 3. PM fails to deal with underperformance (and arguably is the wrong
way to do so)
SLIDE 13 “Everyone in the organisation expects and wants underperformance in others to be addressed. We need to find the courage to have the difficult conversations
Joel Le Goffic, Regional HR Director DS Smith plc
SLIDE 14 The six reasons Performance Management fails in many organisations
- 1. PM has become an overloaded administrative process driven by HR
- 2. PM meetings happen too infrequently
- 3. PM fails to deal with underperformance (and arguably is the wrong
way to do so)
- 4. Performance improvement has become a process of measuring failure
SLIDE 15 “Performance Management should be about enabling people to perform at their best – about ‘playing to win’…not playing to avoid losing”
Andrea Cartwright, HR Director Supergroup plc
“…people’s fields of view actually constrict; they can take in a narrower stream of data and there’s a restriction in creativity’
David Rock, author of ‘Your brain at Work and co- founder of the neuro Leadership institute
SLIDE 16 The six reasons Performance Management fails in many organisations
- 1. PM has become an overloaded administrative process driven by HR
- 2. PM meetings happen too infrequently
- 3. PM fails to deal with underperformance (and arguably is the wrong
way to do so)
- 4. Performance improvement has become a process of measuring failure
- 5. Forced distribution is fundamentally flawed
SLIDE 17 “The reality is that we, like many businesses, end up focussing on the two extremes: who are the bottom ten per cent and the top ten per cent. As a consequence we are at risk
and how we can motivate them to nudge their performance and development”
Tony Prestedge, Chief Operations Officer Nationwide Building Society
SLIDE 18 The six reasons Performance Management fails in many organisations
- 1. PM has become an overloaded administrative process driven by HR
- 2. PM meetings happen too infrequently
- 3. PM fails to deal with underperformance (and arguably is the wrong
way to do so)
- 4. Performance improvement has become a process of measuring failure
- 5. Forced distribution is fundamentally flawed
- 6. Stars get lost in the process
SLIDE 19 How to make PM work in your organisation
- 1. Leaders must lead – and be seen to lead – performance
management
- 2. Strive for great conversations that happen regularly and frequently
- 3. Create an environment in which performance is endemic
- 4. Engender employee commitment through shared purpose and
values
- 5. Keep it simple and focused on performance/development.
SLIDE 20 “[We] simplified the process to reduce emphasis on documentation and form
- filling. We have refocused on driving
quality development conversations and continuous feedback – the role of manager as coach is a critical element of this to identify and retain our top talent.”
Charlotte Clayton, Senior Manager − Global People, Performance and Culture, KPMG UK
“We are fast coming up to a crisis point where managers will not have the capabilities to understand different generations’ motivations and be able to relate to their workforce. This is critical and crucial to get right. T echnology must be used to help solve this crisis.”
Mike Amato, Non-Executive Director, Santander UK
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SLIDE 23
What drives positive behaviours around performance appraisal?
SLIDE 24
The Behavioural Neuroscience of Performance Management
Professor Richard Crisp
SLIDE 25
Be Inclusive
Brain imaging studies show that when people are excluded from a group the same part of their brain ‘lights up’ as if they were experiencing physical pain (Williams & Jarvis, 2006) PM reviews that tackle difficult issues head on can stimulate “system 2” thinking – helping to foster innovative outcomes through social collaboration (Crisp & Turner, 2012)
SLIDE 26
Be Informal
Status and hierarchy can be endemic to PM But emphasizing social differences can shut down the medial prefrontal cortex: the part of the brain used for advanced social cognition (perspective-taking, empathy, trust) … … and activate the amygdala: the part of the brain that responds to threat (‘fight or flight’) (Harris & Fiske, 2006) Effective engagement might therefore be best achieved by reducing the elements of status surrounding PM (using less formality, less status-driven language)
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Be Open
Adopting an ‘expansive’ posture (relax, informal) vs. ‘contractive’ posture (arms folded, legs crossed) can promote less defensive, risk-averse behaviour Expansive postures are also associated with less cortisol production (the stress hormone) (Carney, Cuddy, & Yap, 2010) PM reviews that encourage a relaxed posture (e.g. think sofa vs. desk) can help stimulate innovation, exploration and reduce stress
SLIDE 28
Performance Management What’s the point?
Octagon Research Series 2015
SLIDE 29 Research - How to increase engagement through Performance Management.
We need you!
- Do you want to get the best from your
Performance Management process?
- Are you all ready measuring levels of
Employee Engagement?
Research Supported by Research in collaboration with
SLIDE 30
Any Questions?
SLIDE 31
