Performance Management

Editor's Notes

• #3: Born between 1977 and 1997 – Want change at alarming speeds – Adopt technology very quickly – They are wired from birth38 yrs for radio to be adopted in 50 mil hhiPods took 3 years and Facebook 2
• #4: IndraNooyi – CEOPepsicoRobert Reich – Economist and former Secretary of Labor.Unfortunately, our attention in many instances get’s pulled in other directions. We aren’t always able to keep our focus on our people because of the rate/speed of change and its impact to our organizations.
• #5: I don’t know about you but this is how I feel every day. There is so much going on that impacts what we do, who we interact with, how we interact. Etc.Every organization out there is being impacted by change. The speed of which things are changing is happening at dramatic speeds.
• #6: Right now, we have 4 gens in the workplace…Traditionalists, Baby Boomer, Generation X and Millennials….soon we will have a 5th in the 2020 Gen. This means every organization is starting to be impacted by differences in the workplace. Businesses are going to have to modify current or create new strategies to deal with these generations. Motivation, communication, development, and engagement is all very different for these groups. They each grew up in different times, have different beliefs in how/why they work. What they know is very different. For example….if we asked 4 generations how and where Kennedy died your answers may look something like this….Traditionalists/boomers – he was shot in Texas – Gen X’s – He was killed in a plane crash not far from Martha’s vineyard, Gen Y – Some would say Kennedy who?This is the first time in our history we have had 4 generations in the workforce and it’s changing how we think and act in regards to managing and engaging them.
• #7: We are at a very exciting time with technology. That speed at which technology changes is truly fascinating.6 years ago – no real adoption of facebook and no twitter.5 years ago – no iphone 3 – no iphone apps.1.8 Billion Internet users5.3 billion cell phone users – 77% of worlds population8 trillion SMS messages sent in 201110.9 billion apps downloadedBy 2013 mobile will take over PC’s as most common web access device. Purchases of mobile outpaced PC’s in Q4 2010.By 2015 approximately $119 Billion of transactions will take place through m-commerce.
• #8: More video uploaded in 60 days than all 3 major networks created in 60 years100 million daily mobile views13 million hours of video uploaded in 2010Facebook is the #1 most visited website850+ million active members48% of young Americans admit to getting their news from Facebook* 75% of Brand 'Likes' on Facebook come from Facebook ads* More than 30 billion pieces of content are shared each dayTwitter has over 200 million tweets a day500,000 accounts added each dayIt took 3 years, 2 months and 1 day to go from the first tweet to the billionth tweet. In 2011, 1 billion tweets are now sent every week.
• #9: I don’t know about you but this is how I feel every day. There is so much going on that impacts what we do, who we interact with, how we interact. Etc.Every organization out there is being impacted by change. The speed of which things are changing is happening at dramatic speeds.
• #12: Compliance – Companies want to monitor individual compliance with overall business directives and policies, as well as government regulations.Equity – Companies want to ensure that compensation, promotions and other benefits are equitably distributed, in accordance with each employee’s performance.Business Result Improvement – Companies want to align individual and overall business goals to ensure employees understand the kinds of contributions that supervisors expect.The reason many are based on Compliance is b/c of the history of the process. Let’s take a look.
• #13: 1700’s and the Industrial Revolution – advances like the spinning Jenny warranted a need for increased productivity work methods and quality. What better way to measure than through a performance review.Also had Adam Smith aka – Father of capitalism….wrote book Wealth of Nations – All about the benefits of division of labor – break everything into specific tasks and specialization and then measure it.1800’s – Unions were formed to address Child Labor Laws, wages, 12 hour work days1900’s – National Cash Register company is thought to be first for having a Personnel dept. Human Relations movement was started – bosses have to do more than hire/fire people. Management styles evolved. Productivity increased improved as managers began to truly manage. 1950’s brought the government into performance with the performance rating act. 3 rating categories for workers…Outstanding, Satisfactory, Unsatisfactory. 1954 – Incentive Awards Act. 1962 – Pay for Performance. 1970’s Performance management Fever. 1980’s – Management By Objective (MBO) By late 1997 – satisfaction had dropped significantly. SHRM study showed about a 5% rate of Very Satisfied.Early 2000’s was all about automation – companies emerged with tools to help (Halogen, Taleo, Kenexa, Plateau, SuccessFactors) Unfortunately, a lot of negative consequences – managers completed all reviews the same, feedback on things done a quarter or even longer in the past. We essentially helped companies fail faster in the eyes of their employees when it came to PM.Late 2000’s – PR destroy morale, break team work – According to Reuter’s 4 out of 5 ee’s are dissatisfied with their review process.The Future – performance will become social (Rypple, Yammer, Tibbr) Badging will occur, leaderboards, continuous collaboration.
• #17: This method we are all used to of “doing” performance management is ineffective at driving performance improvement and ultimately business results. It relies on the underlying assumption that performance management is a series of steps in a process that is somehow connected to, yet separate from, managers’ day-to-day activities. The result is that managers never “make time” for performance management throughout the year and the term “performance management” becomes a synonym for “performance appraisal.” Unsurprisingly, performance appraisal does not improve performance.Our belief is that organizations should think of performance management primarily as a number of ongoing activities that individuals engage in regularly – with a performance appraisal event to check-in on progress and provide the information necessary to formally reward performance. This is how high-impact performance management organizations think about performance management – and they experience much better employee, talent management and business results thanmost organizations.
• #18: Goals – In a recent Bersin survey, 54% of organizations think of goal-setting as a once or twice per year activity. However, most organizations’ businesses move much faster, resulting in misalignment within just a few short months after goals are initially set. High-impact performance management organizations review and revise goals regularly, though, and experience better business outcomes. Organizations who revise goals at least quarterly if not more frequently experienced a much higher level of business performance. 28% higher than average performing organizations. This strong correlation between goal-revision frequency and business outcomes is why organizations need to think of their approach to goals as ongoing, not event-driven.Let’s look at a traditional process for goal setting. Please note, there are great outcomes from ongoing goal management even in it’s most traditional form as you can see here. Many organization subscribe to three of the four goals techniques I am about to discuss….Executive Goal-Setting – The process by which the CEO and senior executives set goals for the organization, as well as for themselves. This activity typically takes place toward the beginning of the fiscal year, but the goals should be revised regularly throughout the year.Goal Cascading and Alignment – This is the process of sharing goals down the organizational hierarchy (cascading) and the process for ensuring that lower-level goals support higher-level goals (alignment).Employee Goal-Setting – The process by which employees’ individual goals are established. These goals should align with higher-level goals and be revised as business conditions and / or higher-level goals change.**Goal Revision – This is the act of regularly revisiting employee or organizational goals, and making changes as are appropriate, given changes in markets, strategies, employee roles, etc. Not just reviewing once, twice or three times a year. This is the act of truly revisiting your goals on an ongoing basis.But this isn’t even enough any longer. If you think about the role you play every day, there are many goals/objectives that you have that are tied to others in the organization. You are many different teams, interact with many different people and yet your goals are set in a very siloed manner where only you and your manager are revisiting them.
• #19: At most organizations, employees have managers and/or supervisors who simply manage them. What is the difference between managing and coaching? In this context, the word “manage” is often associated with the concept of control, whereby someone else is controlling or directing employees’ work. Coaching, however, is more focused on enabling employees to achieve their best performance. Organizations weightthe importance of each of these roles depending on their performance management philosophy. For example, organizations with a strong emphasis on coaching and development will focus more on enabling and coaching employee, rather than an organization that ascribes more to a philosophy of competitive assessment.Management Responsibilities – The basic responsibilities required of a manager who has a direct report, including administrative tasks and addressing challenges that employees cannot resolve without assistance.␣␣ Work Plans – The allocation of workload, the method by which the work will be done and the appropriate timeline. This is frequently done in concert with the employee and / or other managers.␣␣ Feedback – The informed assessment or opinion of a third party on an employee’s work. Managers and / or coaches should deliver this in a way that both emphasizes the positive and provides constructive criticism on how to improve.␣␣ Coaching – Positively supporting, directing and instructing employees on how to improve their performance. Coaching is typically targeted at a particular activity or area o
• #20: There is a significant difference between Training and Development. Training is something we do that makes us feel good. We exhaust countless dollars on programs that in the end, don’t give us the results we are looking for. Development on the other hand, is much more than training. Just look at the definitions: “development” refers to the ongoing process of improving one’s skills, capabilities and knowledge to increase his / her businessperformance or job responsibilities. It’s about the full array of training, job assignments, projects, education, information and experiences that result in an individual’s progression in his / her career or role. Development planning, therefore, is the identification of the appropriate development experiences for an employee.Development planning is a logical extension of coaching, feedback and performance appraisals in that it enables managers and employees to determine how to address identified performance gaps. High-impact performance management organizations build development planning into the year, encouraging employees and managers to focus regularly on how to achieve better performance.IDPCareerDevelopment OpportunitiesCareer Planning
• #21: Rewarding and recognizing employees is critical to obtaining high performance. Without differentiated rewards and recognition, employees will leave the organization and / or fail to exert a high level of effort.Compensation Reviews – A process typically initiated by a manager of a talent management / organizational effectiveness group to assess the internal and external competitiveness of an employee or group of employees’ compensation and benefits package.Financial Rewards – The financial compensation employees receives as a result of their work for an organization. This compensation typically includes base pay, merit or cost of living increases, and bonuses (annual or more frequent)Nonfinancial Rewards – The opportunities or benefits that a manager can provide to reward good performance. These include participation in high-profile projects, flexible work schedule, participation in special mentoring programs, unique developmental opportunities,et al.