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