PerformanceManagementDecember10,20082WeAreHereToLearnWeAreHereto•RefreshPerformanceManagementProcess•HelpemployeesandmanagersbetterunderstandPerformanceManagement:•Linkages,PhasesandTiming•ConceptofSMARTgoals•Feedback&Coaching•PerformanceAppraisal•PerformanceImprovementProcess•DiscussHowtousePerformanceManagementtohelpcreateagreatcompanyHowtousePerformanceManagementtocreateHighperformanceorganization3WhatisPerformanceManagement?“Performancemanagementisaboutimprovingbusinessperformancebyimprovingteamandindividualperformance,andensuringthatacompany’sstrategyisexecutedandimplemented...”TomMcMullen,HayGroupPerformanceManagementcanalsobe….“…avehicleforincreasingourcapacitytogetworkdone,andforachievingwhatismostimportanttous.”NigelBristow,TargetedLearning4PerformanceManagementisAnagreementbetweenemployeeandsupervisorAnon-goingprocessTiedtothemeritprocessPerformanceManagementshouldnotbeAonce-a-yeareventAnpunitiveprocessAtimetogivesurprises5PerformanceManagement●AlignGoalswithBusinessPrioritiesIndividual/team/department/SBU/corporatestrategyEmployeesunderstandwhatmattersmostabouttheirjob●BuildIndividualandOrganizationalCapabilitySeekandreceiveperformancefeedbackFacilitatedevelopingskills&capabilitiesGetworkdone●DifferentiatePerformance6DesiredOutcomesofPerformanceManagement●Aresults-orientedculture●Improvedemployeeengagementandretention●Reinforcementofcompanyvalues●Individualgrowthanddevelopment●Enhancedemployeeandcompanyperformance●Differentiationofrecognitionandrewards7EnablersofPerformanceManagement●Effective,on-goingconversations●Employeeunderstandingofperformancecriteria●Standardizedprocesses,guidelinesandtools●Honestyandcredibility●Compensationalignedwithperformance8PerformanceManagementProcessPhase1:AligningGoalsPhase2:TrackingProgressPhase3:PerformanceAppraisalFeedback&CoachingFeedback&CoachingFeedback&CoachingFeedback&CoachingDec.-Jan.Feb.-Oct.Nov.-Jan.iSetBusinessGoalsSetDev.GoalsCompleteAppropriateSectionsofPerformanceFormReviewProgressAgainstGoalsAdjustGoalsifNecessaryRevisePerformanceAgreementifNecessaryReviewResultsAgainstGoalsCalibratePerformanceAgainstPeersAftercalibrationmeeting,finalizePerformanceRatingFinalizePerformanceAgreement9Performance=What+How10WhyBotherwithPerformanceAppraisals?●Employeeswanttohearhowtheyaredoing!Frommanager!●Anopportunityforcommunicationandmotivation●Asettingtoestablishnewgoals-alignment●Achancetosummarizepastperformance●Aforumforcareerdevelopment●Aformaldocumentationofemployeeperformance11YearEndPerformanceAppraisalMeeting●Scheduleadiscussiontimewellinadvance●Atwo-wayobligation;bothsidesneedtimetoprepare●“Qualitytime”–atleastanhour–1.5hoursbetter●Comfortablelocationandfreeofdistractions●Prepare,prepare,prepare–inwriting●Prepareforquestionsanddisagreements●Whatisthecoremessage?●Makesuretohighlightwhatwentwell,notjustproblems●Bespecific–usesignificanteventsasexamples●Avoidrationalization–werethegoalsappropriateinthefirstplace?12RecommendedDo’sforPerformanceDiscussions●Beprepared●Agreetoamendgoalswhenappropriate●Presentthepositivefirstandbespecific●Helpfulifyoucanpresenttheviewsofothersupervisorsorpeers●Keepyourcriticismconstructive!Nevergetpersonal!●Evenmoreimportanttohavespecificexamples●Centrediscussiononhowmanagerandtheemployeecanworktogethertosolveanyissues13RecommendedDon’tsforPerformanceDiscussions●Stereotyping●“Sinceonethingisbad,thereforeeverythingisbad”●Mirroring–justlikeme●Salarydiscussions–leaveforaseparatetime●Donotpromisewhatyoucannotdeliver●Saying“IthinkIcangetyouapromotion”isDANGEROUS!14QuestionstoEncourageaGoodDiscussion●Howdoyoufeelyouhaveperformedinthelastyear?●Whatarethe3mostimportantachievementsoftheyearforyou?●Howhaveyoudevelopedpersonallyovertheyear?●Whatnewcompetencieshaveyoudeveloped?●Whathaveyoulearnedthatcanbeappliedinthefuture?●Whatfeedbackhaveyoureceivedfromothersaboutyourperformance/development?●Whatareyourcareeraspirations/desirednextmoves?●Whattypeofworkdoyouliketodo?●Whatareyoudoingtoachievethesegoals?●WhatcanIdotohelpyouachievethesegoals?15QuestionstoEncourageaGoodDiscussion●HowhaveIhelpedyourperformanceduringthelastyear?●WhatelsecouldIhavedone?●Whatdoyouexpectmostandneedmostfromme?●Howdoyoufeelthatourteamisworking?●Howis“team”working?●Anysuggestionsforimprovement?●Ifyouwereinmyjob,what1or2keyareaswouldyoufocusoninthenextyear?16PerformanceManagementBellCurveBestPerformersPoorPerformersReward/RetainDeveloponaFast-trackReward/RetainMaintain/ImprovePerformanceDevelopImprovePerformanceManageOut=30%=60%=10%17Performance&PotentialGridPotentialCurrentPerformanceLowLowHighHighAcceleratedDevelopmentReward/RetainMotivationJobExpansionPerformanceImprovementCoachingJobFitAssessmentManageOut18“Room”forLowPerformersApprovalPIPAdjustmentofjobPass?Pass?TerminationYNYIdentifylowperformerNHighlights●Objective-Aimtomotivateandimprovetheperformanceoftheemployeewhohasbeenidentifiedasalowperformer-TerminationisNOTthemajorpurposeandresultforPIP●Definitionforlowperformer-yearlyratingis=2-quarterlyratingcontinues=2●Althoughthemanageralwayshave