coffee break [30-min] webinar: how to use ongoing performance management in 2017

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Ongoing Performance Management:Set clear goals, align everyone to what matters,

do lite check-ins and drive great performance with your people.

#1 for Enterprise Goals & Ongoing

Performance Management

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30-Min Coffee Break Webinar: How to Use Ongoing Performance

Management in 2017

(Pronounced: A-Team)

The Atiim Best Practices Series

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Introduction

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Source: Bersin & Associates, “Modern Performance Management and Next-Generation Recognition and Rewards”, Stacia Sherman Garr

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Source: Deloitte, Top 10 Keys to Success / Is Your Performance Management Healthy?, Josh Bersin, October 2015

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Challenges You Face

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Harvard Business Review: https://hbr.org/2016/03/two-thirds-of-managers-are-uncomfortable-communicating-with-employees

People leave their manager, not the

company!

Managers Are Uncomfortable Communicating With Employees –Surveyed by HBR & Harris Poll

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Employees Are Complaining About Managers

Harvard Business Review: https://hbr.org/2015/06/the-top-complaints-from-employees-about-their-leaders

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“Performance management as practiced by most organizations has

become a rule-based, bureaucratic process, existing as an end in itself

rather than actually shaping performance. Employees hate it. Managers

hate it. Even HR departments hate it.”

Laszlo Bock, SVP of People at Google

Source: Fast Conmpany, and Work Rules, Chapter 7 “Why Everyone Hates Performance Management and What We Decided to Do About It”, Laszlo Bock

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Source: Bersin by Deloitte, Josh Bersin

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58% of executives believe that their current

performance management drives neither employee engagement nor high performance

Source: Deloitte, Performance Management is Broken, Lisa Barry, Stacia Garr, Andy Liakopoulos, 2014

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Source: CEB, SHRM - Performance Reviews are Dead, SHRM – Is it Time to Put Performance Review on a PIP?

95% of managers are dissatisfied with their companies’

performance review / management systems

90% of HR professionals don’t believe their companies’

performance reviews provide accurate information

66% of performance management processes

misidentify high performers

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Source: CEB, SHRM - Performance Reviews are Dead, SHRM – Is it Time to Put Performance Review on a PIP?

66% of employees say the performance review

process interferes with their productivity

65% of employees say it isn’t relevant to their jobs

59% of employees feel performance reviews are not

worth the time invested

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• Only 3% of organizations say their performance management

system delivers exceptional value

Source: 2013 Global Performance Management Survey Report

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Source: Harvard Business Review, Marcus Buckingham and Ashley Goodall, April 2015

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Source: Harvard Business Review, Marcus Buckingham and Ashley Goodall, April 2015

“We tallied the number of hours the organization was spending on performance management—and found that completing the forms, holding the meetings, and creating the ratings consumed close to 2 million hours a year. ”

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Source: HBR, The Performance Management Revolution, Peter Cappelli and Anna Tavis, October 2016

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Source: Washington Post, The Corporate Kabuki Of Performance Reviews, Jena McGregor, February 2013

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• Marcus Buckingham: “They’re designed as though they’re Russia in the ‘60s”

• The traditional review - “totally out of date.”

• That’s especially the case for workers of a younger generation, who have come to expect immediate feedback in nearly every other aspect of their lives. “They put something on Instagram, and in 15 to 20 seconds they’re expecting to know if it’s any good or not,” Buckingham says. “So it’s crazy for them to come into a workplace that’s like, ‘We don’t care about you, and twice a year we’re going to tell you what the company wants.’”

• So why then, pray tell, do we still do performance reviews?

Source: Washington Post, The Corporate Kabuki Of Performance Reviews, Jena McGregor, February 2013

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Source: HBR, The Corporate Kabuki Of Performance Reviews, Jena McGregor, February 2013

In surveys of managers and human resource professionals, leadership advisory firm CEB found that performance reviews get pretty bad reviews themselves

They’re wildly inaccurate and ineffective

They’re also surprisingly inadequate: Just 23 percent of HR folks surveyed by the firm say they’re satisfied with their organizations’ performance evaluations, down from more than 50 percent a decade ago

85% have either made changes in the past year in hopes of improvement or plan to do so in the next year.

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Source: The Push Against Performance Reviews, Vauhini Vara, 2015

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Why must we continue to have these awkward conversations, in which both sides try to recall what employees accomplished nearly 12 months ago and to make excuses for broaching uncomfortable subjects?

Source: Washington Post, The Corporate Kabuki Of Performance Reviews, Jena McGregor, February 2013

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“The world isn’t really on an

annual cycle anymore for

anything.”

- Susan Peters, Head of HR at GE

Source: http://qz.com/428813/ge-performance-review-strategy-shift/

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“They purport to be objective. They’re not objective.”

- Samuel A. Culbert, professor of management and organizations at UCLA’s Anderson School of Management

Source: SHRM

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“For many people the whole idea of not doing them is almost seen as irresponsible.”

- Mary Jenkins, an HR consultant, author of “Abolishing Performance Appraisals”

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“I wrote this book because so many managers and employees told me that they dread the performance review and thought it is a waste of time.”

- Dr. Tim Baker

(Source: Amazon)

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…. a cookie-cutter, fear-based, top-down approach that emphasizes negatives over positives and stifles healthy career conversations. It's never been shown to motivate anyone to do anything but try to avoid it, but nobody feels like they have any alternative.

- Tamra Chandler has one—and it works. (Source: Amazon)

Legacy Performance Process Doesn’t Work…

• Too complex and rigid

• Rife with critical biases

• Frustrating for everyone

• Does not improve performance

• Does not focus on developing your people

• Not frequent enough when everything is changing so fast

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Total cost of your workforce:

70%

Source: Brookings Institute & SHRM Research

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Is There a Better Way?

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Why is this occurring? 3 Big Drivers

1. The existing process is too complex. Most managers believe it is not worth the time put into it.

2. The process is not developmental enough.

3. A major shift is taking place in management thinking, something that takes place only every few decades.

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First, let me talk about what we feel is the hottest and most disruptive area of HR – the redesign of

performance management.

Source: Deloitte Bersin, Josh Bersin, “Predictions for 2016: A Bold New World of Talent, Learning, Leadership and HR Technology Ahead”

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More than 60% of all companies are redesigning (or have redesigned) their performance management process, typically

moving from top-down rating and ranking to a feedback-centric, developmental, often rating-less model.

Source: Deloitte Bersin., Josh Bersin, “Predictions for 2016: A Bold New World of Talent, Learning, Leadership and HR Technology Ahead

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Going forward, we believe employee performance

will be transformed to deliver results using continuous methods and advanced technologies.

Source: Forrester, Transform Employee Performance For Continuous Engagement, Paul D. Hamerman and Claire Schooley, 2016

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What is Continuous?

• Series of ongoing activities (not just a once a year event) focused on talent development and improving employee’s performance (not just assessing it)

- Agile goal-setting (OKR goals)

- managing and coaching

- development planning

- rewarding and recognizing

• Deloitte Bersin research demonstrates that respondent organizations with an ongoing focus have better employee, talent, and business results.

Source: Includes insights from Business2Community, Managing Performance in the 21st Century, Katherine Jones, 2015

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Source: Bersin Deloitte, Top 10 Keys to Success / Is Your Performance Management Healthy?, Josh Bersin, October 2015

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GE is moving toward "continuous touchpoints" between managers and employees

- Valerie Van Den Keybus, GE

Source: CNN Money

™Source: Business Insider, Why Adobe Abolishes Performance Reviews

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Donna Morris explained that the performance review is a “dreaded dental appointment” for manager and employee alike.

Donna Morris concluded that employees hated them and they weren’t very useful.

Source: The Push Against Performance Reviews, Vauhini Vara, 2015

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Adobe calculated that the annual

process required 80,000 hours of time

from its 2,000 managers, the equivalent

of 40 full-time staff.

Source: Fixing Performance Appraisal Is About More than Ditching Annual Reviews, Graham Kenny, 2016

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Swapping out the annual review in favor of regular Check-Ins allowed Adobe to have a lightweight process that served — rather than distracted from — people doing their best work. Source: Business Insider, Why Adobe Abolishes Performance Reviews

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The Traditional, Outdated Approach

All collapsed together:

Annual Reviews, Annual Goals

& Compensation

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2. Quarterly, Mid-Year and Annual Meetings

1. Agile Goals Management (OKRs) &

Ongoing, Real-TimeCheck-Ins

3. SEPARATE:Compensation

Modern Ongoing Performance Development

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Source: Towers Watson Group, 2015

81% of employers say managers spend too little time in ongoing conversations with employees about their performance

62% of employers say that managers spend insufficient time helping employees set goals

63% of employers say their managers spend 4 hours or less per employee on performance management each year

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OKR Goals

has 360,000+ views!

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How To Do It

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8 Key Steps in Making a Transition

1. Agile goals (OKRs) - start with an agile goal-setting process

2. Measurable - use data-driven management based on OKR metrics

3. Managers and employees to do regular, weekly Check-Ins

4. Ongoing, Continuous 2-way Feedback

5. Local - must be manager/employee driven process, and HR supported

6. Goals to improve performance, not exclusive to compensation

7. Strength-based development

8. Recognition – empower with a culture of recognition

Based on the insights from Deloitte, Top 10 Keys to Success - Is Your Performance Management Healthy?, Josh Bersin, October 2015

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Research has linked agile goals (like OKRs) & ongoing feedback with higher employee engagement, increased performance and better corporate results.

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95% of employees do not fully understand the company’s goals or what’s expected of them to achieve the company

goals

Source: Harvard Business Review, Robert Kaplan and David Norton.

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Goals combined with Employee Feedback Increase Employee

Engagement & Performance!

Source: Gallup – Employees Want a Lore More from their Managers

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Continuous feedback is difficult to sustain that if

it’s not happening organically.

Regular conversations between managers and

their employees are now occurring without HR’s prompting.

Source: HBR, The Performance Management Revolution, Peter Cappelli and Anna Tavis, October 2016

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• So far, fears that the changes would lead to managers not making tough calls about terminating people have gone unfounded – “involuntary turnover” as Stockdale calls it, has remained steady.

• In addition, managers’ increased freedom in the performance evaluations has led to double the average merit increases for the company’s truly exceptional performers.

• When she describes the new system to her HR peers at other companies, she hears a lot of “I would love to do that, but…” responses.

• No one seems ready to follow suit. “This is one of the sacred cows. The typical performance review system doesn’t work because you’re demotivating half your population, poking them in the eye with a sharp stick.”

Source: Washington Post, The Corporate Kabuki Of Performance Reviews, Jena McGregor, February 2013

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Some of the world’s best companies transitioned to modern performance management!

Source: Company announcements, Fortune, HBR, Washington Post, WSJ

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Thank you!Questions? Email: Zorian@Atiim.com

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