Trash Your Performance Appraisal Form
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1 Trash Your Performance Appraisal Form Unite with your Employees for their Development Amy Shoemaker, Founder January 22, 2016
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3 Another Definition of Performance Management Performance Management is the cause and symptom of change in corporate culture or strategy
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5 Our Performance Management Conversation: Business Case to break your current Performance Appraisal System Lessons learned in Creating an Engaging and Empowering Talent Development Process What about Compliance? Balancing feedback with Standards for Performance What does this mean for Pay for Performance?
6 Key Elements Included in Performance Management
7 Key Elements Not Included in Perf Mgt
8 Performance Appraisals Cause More Damage or Value?
9 Future of Performance Management More Simple More Transparent More Developmental More Coaching Oriented Constant feedback workplace Brief, frequent & specific development is easier to digest and act on 70% of learning occurs on the job
10 Why Suddenly So Obsolete? How HR 'Best Practices' Kill Innovation Forbes Leadership June 7, 2015 Rethinking HR HARVARD BUSINESS REVIEW JULY AUGUST 2015 Companies Say No to Having an HR Department, Employers Come Up With New Ways to Manage Hiring, Firing and Benefits WALL STREET JOURNAL
11 What Happened to Performance Management? 8% of Global Organizations believe Performance Management process is worth time put into it Bersin & Deloitte Consulting Survey % of employees find reviews useful for development and training - Towers Watson 70% of companies plan to redesign & simplification their Performance Management Process Bersin & Deloitte Consulting Survey % - company above average in conducting performance management SHRM Survey % managers dissatisfied with performance management systems 90% HR leaders don t believe they yield accurate information Corporate Executive Board Survey
12 What Happened to Performance Management? 12% eliminated numerical ratings or evaluations entirely up threefold from 2012 Corporate Executive Board Survey of Fortune 1,000 Companies Influx of younger workers & tightened demand for skills = increased focus on coaching Up or Out Model ineffective: Talent highly mobile Specialists are of increased value
13 What Happened to Performance Management? Employees have more Managers Team Leaders and Cross Functional Teams Since % inc. in span of control; feedback from multiple sources Bersin & Deloitte 41% millennial workforce prefer to be recognized for work at least monthly - PwC NextGen Study 2013 Eliminated Ratings and dramatically improved Engagement Retention Performance
14 What Happened to Performance Management? New Research on Neurology & Psychology of work Numeric Ratings and Rankings Formal Evaluations without positive feedback = Reduce Performance Neuroscience based framework called SCARF model 5 organizational factors have immense effect on negative reactions Status perception of being considered worse or better than peers Certainty predictability of future events, certain my hard work will get me a higher rating Autonomy level of control people feel over lives Relatedness experience sharing goals with others Fairness being treated equitably and respected, especially when compared with others When SCARF factors are low people feel threatened, it impairs productivity and commitment
15 What Happened to Performance Management? Bell Curve alienates hyper-performers Dislike performance distribution that forces people into quintiles Myth of the Bell Curve: Look for Hyper-Performers, Josh Bersin, Forbes.com, Feb 19, 2014 Social Tools = Transparency Share goals, recognition, Work information New peer to peer dynamic More agile, transparent model for feedback Creates higher level of performance & innovation
16 Several Important Issues Should Be Addressed Revisit why of Performance Management Process What business, talent, & cultural outcomes are we trying to achieve? Are we going through a turn-around? Are we trying to weed out low performing, entitled people? Are we competing for top talent? How much differentiation in compensation do we want to create?
17 Defining a Performance Culture Important Questions to Ask and Answer 1. Which skills and behaviors matter most to your business success? 2. What kind of individual and team behavior do you want to encourage? 3. How do practices such as incentive pay, performance ratings and forced distributions either help or hinder the attainment of these objectives?
18 Performance Management Transitions 1. Performance Coaching & Development are among most important parts of process focus! Monthly feedback meeting develop culture of conversation, goal setting & performance feed forward Feed Forward Feed Back 2. Goal Management historically top-down cascading process Should be agile, frequent, transparent High Performing Company Keep goals simple, revisit frequently & publically
19 Business Impact of Low Alignment
20 6 Requirements of High Alignment
21 Individual Roles in Supporting Strategic Goals
22 Clear, Timely Feedback on Goal Attainment
23 Performance Management Transitions 3. Numeric rating should play lesser role Single rating on 5 pt scale = not productive Trends: Values based feedback & advice, rather than a grade Does your performance management process answer questions every employee wants to know? What do you expect of me? How am I doing at meeting your expectations?
24 Performance Management Transitions 4. Loosen Connection between Compensation & Performance Rating: Trend compensation adjustments based on: Performance Customer Impact Skill Scarcity Competitive nature of position
25 Incentives to Drive Performance & Development
26 Performance Management Transitions 5. Simplify change focus on process to focus on management philosophy, tools & skills to manage well
27 Performance Management Transitions 6. HR Software is starting to adapt more agile, simple solutions Reflektive transparency, no anonymous feedback Anytime Feedback Tool Amazon.com Workday Impraise Engagedly Success Factors TouchBase Goal Library Mobile Goals Perception by Kanjoya interpret intent and emotion behind written text, analyze written responses in seconds
28 New Reality Real Time Feedback/Feed Forward Organizations replaced year end appraisals and ratings with in-depth conversations, including performance measures
29 Microsoft 2013 revamp evaluation process Focus on team results Leveraging and contributing to one another Emphasize continual learning and growth Stopped ratings, distributions, annual reviews Kept goal setting Retired Ratings, distribution curves and annual reviews Transitioned to focus on team results, collaboration, leveraging team members and continual learning
30 Deloitte Marcus Buckingham redesign performance management system Focus nimble, real-time, and more individualized process Fueling performance in future not assessing it in the past Best teams Strengths oriented Coworkers committed to quality work Mission of company inspires them Weekly check-in with team leader direct and measurable correlation between frequency of conversations and team member engagement
31 Deloitte Project Feedback At the end of every project all members of a project team answer 4 questions about each other 1. Given what I know of this employee s performance and if it were my money, I would award this person the highest possible compensation increase and bonus. 2. Given what I know of this employee s performance, I would always want them on my team. 3. This employee is at risk for low performance. Yes or No 4. This employee is ready for promotion today. Yes or No
32 GAP Replaced year end evaluations and ratings Added monthly in-depth conversations, more meaningful and productive in improving employee performance Eliminated ratings viewed as deficiency statement by employees Goal more desirable results and better performance conversations % of no-rating pilot group reported performance management experience was positive
33 Resources What s After Annual Performance Reviews? Never -Ending Performance Reviews Rebecca Greenfield, October 12, 2015, Bloomberg Business. How Big Data can take the Pain out of Performance Reviews. Cyrus Sanati, October 9, 2015, Fortune Magazine. Reinventing Performance Management Marcus Buckingham and Ashley Goodall, April 2015 Harvard Business Review. The Future of Work: Say Goodbye to HR? Rick Wartzman, April 2015, Fortune Magazine. Rethinking your Performance Management Program Success Factors, Inc Kill Your Performance Ratings, Neuroscience shows why numbers-based HR management is obsolete David Rock, Josh Davis, and Beth Jones, Autumn 2014 PwC Strategy and Business. Reinventing Reviews, Dori Meinert, April 2015, HR Magazine HR Trends and Predictions Josh Bersin and Deloitte Development, LLC, January 2015.
34 Trash your Performance Appraisal Form Amy L Shoemaker, PHR, SHRM-CP, EMBA, Certified Master Coach Amy Shoemaker Partnerships, LLC President and Owner amy@shoemakerpartnerships.com Office Phone: Mobile Phone: Website: LinkedIn: Amy L Shoemaker
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