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Gene Johnson - HRLeaders 2017 workshop

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Gene Johnson - HRLeaders 2017 workshop

  2. 2. MY BACKGROUND 2 PhD - Industrial/ Organisational Psychology Management Development Programme Senior Personnel Research Psychologist Lecturer in Business School – HR & I/O Psych Manager, IQuentis (outsourced recruitment & training) EMEA Director, Talent Management & L&D Interim International Director, Talent & Development Interim Global Director, Leadership Development
  3. 3. AGENDA 1. What is a Performance Culture? 2. Communicating Vision & Values 3. Setting Clear Expectations 4. Creating a Feedback Environment 5. Ensuring a Development- & Improvement-focus 6. Making Performance Distinctions 7. Manager as Catalyst 8. Driving Cultural Change 3
  4. 4. TYPICAL PM (MORE OR LESS) 4 Objective Setting Standard template Manager & EmployeeDevelopment Planning Short- term Long- term A year passes … Below Expectations Exceeds Expectations Meets Expectations WHAT HOW Performance Review Forced distribution
  5. 5. PSYCHOLOGY OF PM 5 RATINGS GOALS • Motivational = provide direction • Specific & challenging FEEDBACK • Directional (if constructive) • Praise is good (warm fuzzies) TRACKING • Are goals reached? • Individually • Organisationally REWARD EQUITY • MOTIVATIONAL • Input-to-Output Ratio • Distributive Justice • Procedural Justice
  6. 6. THREE ESSENTIALS 1. GOAL S Tell me what do I need to do, how well, by when, etc. 6 2. FEEDBA CK Give me feedback that I can trust. 3. REINFORCE MENT Acknowledge my performance… reward it or develop me, distinguish me from others (especially if I excel)
  8. 8. PERFORM ANCE CULTURE 8 Simple & Agile Process Executives Lead on PM Manager as Catalyst Feedback Environmen t Vision-& Values-Driven Clear Performance Expectations Development- & Improvement- Focused Performance Distinctions THREE ESSENTIALS GOAL SETTING FEEDBACK REINFORCEMENT
  10. 10. START WITH VISION & BUSINESS STRATEGY 1. Staff are inspired by vision & mission 2. Staff live and breathe core values, which are reflected in expectations and feedback 3. Strategic business objectives are linked to individual objectives, through cascading 4. The purpose of performance management is clear 10
  11. 11. INSPIRE – STRATEGIC INTENT Why are we here? 11 • Captures the essence of ‘winning’ and achieving What is the ultimate objective? What is our mandate? • Is stable over time – the ‘end’ stays the same, but the ‘means’ can change and flex Allows shift in short-term action, but alignment must remain • Sets a target that generates personal effort and commitment e.g., To be the best in the world!
  12. 12. THE GOLDEN CIRCLE 12 Start with WHY WHAT Every person on the planet knows What they do. This is your job title, function, the products you sell or services you offer. HOW Some people know How they do it. These are the things you do that make you special or set you apart from your peers. WHY Very few people know WHY they do what they do. The Why is not about making money - that’s a result. The Why is a purpose, cause, or belief. Your Why is the very reason you exist.
  13. 13. CORE VALUES Important and lasting beliefs or ideals shared by the members of a culture about what is good or bad and desirable or undesirable 13 Influence a person's behaviour and attitudes; serve as broad guidelines in all situations Ends rather than the means – what we strive for individually and organisationally ‘Why we do what we do’
  14. 14. PURPOSE OF PM Decision-Making Development • Significant, contingent rewards are available (i.e., a budget) • Pay decisions are more based on tenure than performance, e.g., civil services • There’s a goal to drive high impact and significant results through PM • There’s little reward to be had – e.g., differential pay, pay at risk, other meaningful rewards • There’s a desire for strong and explicit ties between performance and rewards • The culture truly believes that staff development is primary, because growth leads to positive outcomes, e.g., performance • Type of work lends itself to quantitative, easy-to-measure work outcomes • Type of work is not easily measured with a rating • Work outcomes are normally distributed and there are clear high and low performers 14 What makes most sense?
  15. 15. SYSTEM DESIGN DECISIONS SYSTEM DESIGN DECISIONS DECISION-MAKING DEVELOPMENT Type of Rating? Numerical ratings are better – perhaps essential?* Categorical, non- numerical ‘ratings’ are better – behavioural feedback is best Manager Narrative? In addition to above, narrative can justify rating – must be aligned with rating Narrative is essential to understand strengths and development needs Who Rates? Manager is gatekeeper, integrater, and arbiter of all input into a final rating Manager not needed to integrate; feedback can go directly to employee Calibration? Essential for equity Not so important 15 Adapted from Pulakos, E. D. (2009). Performance management: A new approach for driving business results. Wiley-Blackwell.
  16. 16. What’s different?  PM is ‘wrapped’ in daily work, not an annual event (no ratings)  Manager-employee engage in on-going, effective discussions  Simplified admin requirements That was then  Major disparity between PM process and how employees accomplished their day-to-day work  Managers reluctant to give candid feedback to employees  Managers viewed PM as little more than an administrative drill A new mindset, built on a few foundational principles:  Effective PM is an on-going process, not an annual meeting and a form to complete  Day-to-day activities and practices predict the PM quality rather than forms and scales  Employee – manager relationships are at the heart of effective PM  PM systems need to be flexible to address different business needs Everyday PM The results  69% of employees report receiving useful development feedback  70% feel valued due to on-going performance discussions with their manager
  17. 17. ON-GOING DISCUSSIONS = MORE ALIGNMENT, FOCUS, & AGILITY Yes No Understand how they contribute to business strategy 80% 30% Focus on work activities that most impact business results 78% 31% Adjust performance goals in response to changing business priorities 77% 28% On-Going Discussion
  19. 19. GOAL SETTING 19 GOALS • Motivational = provide direction • Specific & challenging • Participative/collaborative (?)
  20. 20. SETTING PERFORMANCE EXPECTATIONS 20 You get back what you expect, so set your expectations high Performance expectations go beyond the job description • What goods and services should the job produce? • What impact should the work have on the organisation? • How do you expect the employee to act with clients, colleagues, and supervisors? • What are the organisational values the employee must demonstrate? • What are the processes, methods, or means the employee is expected to use? Results/Objectives Goods and services produced by an employee often measured by performance objectives (WHAT) Behaviours/Competencies Methods and means used to make a product, and the behaviours and values demonstrated during the process (HOW)
  21. 21. PERFORMANCE OBJECTIVES Timeliness Timeframe to complete work • Respond to requests within 24 hours • Provide financial reports on quarterly basis 21 Quality How well work is performed • 25% improvement in client satisfaction • Produces reports requiring no revisions Quantity How much work is performed • Responds to 95% of requests • Wins 2 new accounts a month Financial Metrics Efficient use of funds, revenues, profits, & savings • Achieved a 15% savings on last year’s budget • Increase revenue by 4%
  22. 22. SMART OBJECTIVES 22 Specific Measurable Attainable Relevant Time-bound Principle Why? Motivational By providing enough challenge e.g., target increase of 10% Informationa l & Directional By being specific and setting a benchmark ‘I know I need to sell 10% more this month’ Built-in Feedback You know when it’s been achieved – and so do others! ‘That sale just took me over 10% - hurrah!’ Time-Bound It sets a deadline ‘I must meet the target by end of month!’
  23. 23. COMPETENCIES nowledge kills bilities ther Characteristics 23 Most critical for achieving important job outcomes and contributing to organisational success Between 5-12 typically used in PM
  25. 25. GENERATING PERFORMANCE TALKING 1. Real-time feedback is the core ingredient; be wary of just adding check-ins. 2. The feedback environment is more than just managers offering feedback; it’s about everyone comfortable with feedback. 3. Feedback should derive from various, credible sources. 4. Some workplaces may encourage employee- driven feedback. 25
  26. 26. FEEDBACK IS VITAL 26 GOALS • Motivational = provide direction • Specific & challenging • Participative/collaborative (?) FEEDBACK • Directional (if constructive) • Praise is good (warm fuzzies) PERFORMANCE • Are goals reached?
  27. 27. REAL-TIME FEEDBACK 27 • Feedback in the moment, when needed… • Must be immediate time connection between behaviour and feedback (basic psychology) • Constructive feedback about what’s not working • Positive feedback about what is working… and recognition for a job well done Vast majority of constructive feedback opportunities are when a misunderstanding occurs, something did not go as planned, or there’s a problem to solve – informal feedback in the moment, not end-of-year performance review!
  28. 28. CONTINGENCY THEORY 28 Classic Behavioral Psychology Reinforcement Theory states that a positive reinforcement of an action will cause it to repeat, whereas negative consequences tend will make that less likely Adults in the workplace learn lots of things through reinforcement and feedback Rats can be trained to push a bar for pellets or jump a cage if shocked Pigeons can be trained to count through feedback A child learns not to walk in the road by a slap on the bum The Role of Feedback 1. Informative: it let’s you know how you are doing 2. Motivational: it energises you by reflecting what’s been achieved Effective feedback has to occur at the same time (or very near to) the original action or behaviour… otherwise the connection may be lost
  29. 29. CONSTRUCTIVE FEEDBACK 29 • Constructive feedback is:  information-specific (so not general)  issue-focused  based on observations of behaviour and not interpretation - judgments like 'not very good ' and 'below average' are criticism  relevant to one’s job • Includes examples of good and poor behaviour  this makes it crystal clear what is expected  description of behaviour that an individual should be exhibiting provides a goal to aim for  even if already exhibited, describing good behaviour enables the individual to use such behaviour again  specific description of 'poor' behaviour identifies which behaviours need changing
  30. 30. BEHAVIOUR-FOCUS, NOT PERSON 30 Identity Feedback may sometimes focus on a person’s personality, suggesting that they should change as a person. This can be very threatening to their identity. Make sure to address the behaviour that has to change. ‘The language you used with your colleague was not acceptable’ (versus: ‘You are crude’) ‘The Logical Levels’
  31. 31. USESACTION-IMPACT MODEL 31 1. Consistently poor performance a. ‘When you do X…’ b. ‘It makes me/others feel…, it affects…, it (add relevant verb)…’ c. ‘What I need you to do is…’ 2. Behavioural issues a. ‘Your performance has been…’ b. ‘The impact is that you are not meeting target…’ c. ‘If it doesn’t improve by X, then the consequences are…’
  32. 32. CATCH THE GOOD 32 • Praise & recognition are underutilised • The power of a sincere ‘pat on the back’ or simple ‘thank you’ can be massive – it acknowledges input and is a form of positive feedback • Even more meaningful is informative positive feedback – e.g., ‘What I really liked about your sales pitch was… If you wanted to improve it, you could…’3: 1 (recommended ratio of positive to constructive feedback)
  33. 33. FEEDBACK ENVIRONMENT 33 Frequenc y of Favourabl e Feedback Frequency of Unfavourab le Feedback Promoti on of Feedbac k Seeking Source Availability Feedbac k Quality Feedback Delivery Source Credibili ty Chawla, N., Gabriel, A.S., Dahling, J.J. and Patel, K. (2016). Feedback dynamics are critical to improving performance management systems. Industrial and Organizational Psychology, 9(2), pp. 260–266.
  34. 34. CREDIBLE FEEDBACK GIVERS? 34 Role best suited… To assess… Supervisor WHAT gets done Peers HOW it gets done (and competencies like decision making, technical skills, motivation) Direct Reports Leadership, interpersonal skills, communication skills, feedback and development-focus Customers Customer service, usefulness of output Self How others see you for comparison
  35. 35. SOCIAL PERFORMANCE MANAGEMENT 35 What it is What it is NOT • Social media platform like Facebook, LinkedIn, etc. - many companies stream the recognitions live on large screens throughout their facilities • An open forum for criticism. Public feedback is all about recognition • Managers and employees establish and share goals with each other and track progress in real time • Constructive feedback is personal and thus is shared only with the recipient • Staff at all levels provide timely feedback and recognition, making it spontaneous and interactive – they can even ‘like’ individual recognitions and other content • An employee’s performance toward goals is visible only to relevant individuals that the manager and employee agree upon in advance (generally team members) • Process resembles having a conversation rather than capturing records after the fact
  36. 36. EMPLOYEE-DRIVEN • Managers provide feedback and support for development • But employees have to be proactive in both regards • HiPo staff proactively seek feedback and want to learn… 36
  38. 38. DEVELOPMENT EVERYWHERE, AT ALL TIMES 1. PM is focused on improvement, not punitive. 2. Development is valued. 3. Development opportunities exist on-the-job. 4. Development experiences (even on the job) have optimal structure. 38
  39. 39. MINING JOBS FOR DEVELOPMENT 39 Current job New job Current Task Current Project New Task New Project New Role
  40. 40. STRUCTURING OTJ DEVELOPMENT 40 • Identify the experience/development activity • Define the learning objective • Identify feedback data • Agree feedback givers (if not the manager) and timelines • Check & measure progress, provide support Assessment of development needs Identify development activity Targeted outcome Challenge/ stretch Preparation & support Reflection
  41. 41. 3X3 REVIEW 41 • What can be learned from past projects? • What is your area of development for this project? • Who can you talk to about previous project efforts? Before • Have circumstances changed? • What have you learned so far? • Who can help with coaching at this point? During • What’s changed from the original objectives? • What specifically did you learn? • What would you have done differently or will you do differently in the future? After
  42. 42. PRIMING A GROWTH MINDSET 42  Priming a growth mindset with a structured or guided conversation (e.g., focusing on goals for the future) enhances receptivity  Contrast “You did well; you must be talented” with “You did well; you must have worked hard on this”  Ratings foster a fixed mindset that they represent who you are for ever and ever, leading to mental paralysis  In contrast, a growth mindset assumes continual learning, growth, and improvement Carole Dweck
  43. 43. Daniel Pink — Drive • Traditional performance management squelches creativity & innovation Samuel Culbert — Get Rid of Performance Review • Reviews, ratings, & forced distribution curves demotivate • Frequent informal performance conversations are key to driving performance David Rock — Coaching with the Brain in Mind • Neuroscience points to need to rethink how we give feedback to minimize threat and unlock creativity Carol Dweck — Growth Mindset • Growth Mindset drives performance – people can learn, develop, grow • Embrace challenges, persist in the face of setbacks, see effort as the path to mastery, learn from feedback, find inspiration in others’ success • Eliminated performance ratings and reviews • Manager and employee meet monthly • Focus on goal progress and adjustment
  45. 45. VITAL TO DISTINGUISH & ACKNOWLEDGE 1. Strong performers are attracted to organisations that recognise individual contributions differentially via pay-for- performance. This also means they will abandon employers who do not differentially reward exceptional performance. 2. Weaker performers will leave employers who reward high performance, but are more likely to stay when pay-for-performance differentiation is weak. 45
  47. 47. CENTRALITY OF MANAGER ROLE 1. Managers don’t embed a culture, but they do reinforce it (or not). 2. Managers implement every aspect of a performance culture. 3. Managerial capacity is a concern. Training is vital. 4. Reinforcement systems for managerial behaviours are necessary, including structure… but not too much. 47
  48. 48. MANAGER AS COACH  CATALYST 48 Inspire Link each individual’s work to the organisation’s mission and its success Grow Develop as part of one’s daily work by leveraging work experiences and others’ expertise Align Provide and receive regular, informal feedback to praise and course correct in real time Adapt Set shorter- term goals and expectations that flex with changing situations Trust and open communication are key for these behaviours to work, but they also generate trust and open communication Pulakos, E. D., Mueller Hanson, R., Arad, S., & Moye. N. (2015). Performance management can be fixed: An on-the-job experiential learning approach for complex behavior change. Industrial and Organizational Psychology, 8(1), 51-76.
  49. 49. A GOOD BOSS IS A… 49
  50. 50. BOSSES CAN TRUMP OTHER EXPERIENCES 50 The original 70-20-10 research was about Excellent & Terrible Bosses • One engagement disincentive is a mediocre boss • Managers should be held accountable for staff development Exceptional Bosses:  provide opportunities for growth  provide exposure to senior executives, make connections, open doors  develop skills and “fix” flaws  inspire, raise the bar, demand excellence  “watch me, listen to me”  offer career advice & guidance
  51. 51. EMBEDDING DAILY MANAGER BEHAVIOURS LEADS TO SUCCESS 51 Corporate Leadership Council. (2004). Driving employee performance and retention through engagement: A quantitative analysis of the effectiveness of employee engagement strategies (Catalog No. CLC12PV0PD). Washington, DC: Corporate Executive Board. Setting clear expectations Providing regular informal feedback Helping staff develop and succeed Up to 40% higher performance 3x greater profitability
  52. 52. PROJECT OXYGEN 52 Be a good coach Empower – don’t micro- manage Be interested in direct reports’ success and well- being Be productive and results- oriented Be a good communi- cator and listen to your team Help your employees with career developme nt Have a clear vision and strategy for the team Have key technical skills, so you can advise the team 8 Habits of Highly Effective Managers Managers demonstrating these behaviours had teams with better performance, retention, and work attitudes
  53. 53. CEB RESEARCH: REMOVING PERFORMANCE RATINGS IS UNLIKELY TO IMPROVE PERFORMANCE (MAY, 2016) 53 Survey of 9500 employees & 300 HR Managers Improvements in measures of employee performance that companies expect actually fall because managers struggle to make and communicate performance and pay decisions without ratings Manager conversation quality declines by 14% because managers struggle to explain to employees how they performed in the past and what steps to take to improve future performance Managers have more time, but time spent on informal conversations decreases by 10 hrs - managers don’t shift that extra time toward ongoing, informal performance conversations Top performers’ satisfaction with pay differentiation decreases by 8% - managers have trouble explaining how pay decisions are made and linked to individual contributions Employee engagement drops by 6% - managers unable to do the very things proven to engage employees, e.g., set expectations, hold clear performance and development conversations, and provide appropriate rewards and recognition
  55. 55. PROCESS MECHANICS Ratings Types # Ratings Eliminating Ratings* Review Frequency Structure & Inputs Multi-Source Feedback Flexibility & Documentation Tailorisation to Your Organisation & Culture 55
  56. 56. # RATING POINTS • Don’t worry about the number of points • 5- and 7-point scales are the most common, but in practice there’s not much of a difference in how they are used – although some managers maintain the 7-point scale allows greater differentiation. It tends to be about personal preference. • If there is a lot at stake, then a 5-point scale at minimum is necessary to differentiate performance • If there are fewer high and low performers and this is clearly obvious, then use a 3-point scale – where most people are ‘satisfactory’ 56
  57. 57. ELIMINATING RATINGS • Should be more than a simple process change (so, not just a process mechanic!) • Will you be able to make decisions without ratings? • Do you want to focus on development? • Decisions require data – so there are still data points being made somewhere, even if they are not communicated – for example: • Calibration sessions • Shadow ratings • Manager discretion • Staff rankings 57
  58. 58. REVIEW FREQUENCY • Distinguish between reviews (annual or otherwise), check-ins, and real-time feedback • The trend is for quarterly or monthly check-ins – these are meant to be reviews of progress and support for performance corrections • They may represent a ‘compromise’ in structure – a placeholder to ensure the check- ins occur • What do you want to achieve in any of these sessions? • Don’t forget about the need for real-time feedback – some processes with scheduled check-ins may neglect this!58
  59. 59. STRUCTURE & INPUTS • To what extent do you want to simplify the process? • Some organisations have reduced numbers of competencies and assessment metrics • Do consider: what doesn’t get measured, may not matter • Keep in mind: what decisions do you need to make, and what data do you think you still need to make them? • Also keep in mind: what inputs will drive the desired performance and behaviour?59
  60. 60. MULTI-SOURCE FEEDBACK • Essentially, this is 360 feedback • It is not a panacea – it can be quite cumbersome • And most 360 systems are only used for development feedback • How structured do you want this to be? Some systems take a broadbrush approach and ask all raters to input on the same aspects – meaning they’re not always relevant • An alternative is Social Performance Management – which can be more dynamic, but may result in less balanced feedback 60
  61. 61. FLEXIBILITY & DOCUMENTATION • What can you do to ensure your process is agile and flexible? • Will you allow goals to be revisited throughout the year, as work progresses or changes occur? • Can you do away with some documentation requirements? (remember, this doesn’t mean that you don’t document performance discipline issues) • Are there any industry or other regulatory requirements that will restrict what you can do? 61
  62. 62. TAILORISATION TO YOUR ORGANISATION & CULTURE • Considering your situation, is there anything not already mentioned that needs to be reflected in your process design? What might that be? • For example, technology organisations may be more comfortable with using social media technology • Engineering firms may be very comfortable with quantitative data 62
  64. 64. APPROACHING CHANGE 1. Plan for change - it can’t just ‘happen.’ 2. ’Sell’ your organisation on the need for change. 3. Ensure executives are aware of their essential role in embedding a performance culture. 4. Consider other reinforcing mechanisms (including the central role of people managers). 64
  65. 65. STRATEGIC STAR 65 •How is behaviour shaped by the goals? •How do we assess progress? •How are decisions made? •How does work flow between roles? •What are the mechanisms for collaboration? Strategy Structure What is the goal? •How are we organised? •What are the key roles? •How is the work managed? •Who has power and authority? ProcessesRewards •What talent is needed? •How do we make the best use of talent & resources? People ©Jay Galbraith
  66. 66. PLAN FOR CHANGE 66 Communicate! Walk the Talk Make an Urgent Case Inspire with a Vision Kotter
  67. 67. IDENTIFY THE CHANGE 67 WHY? HOW? WHAT? S t ruct ure P roce ss C ult ure P e ople K. Judge S t ruct ure P roce ss C ult ure P e ople K. Judge
  68. 68. MAKE THE CASE FOR CHANGE 68 1. Current State 2. Desired State 3. Stakeholders 4. Success Measures Strategy Structure Rewards People Processes 5. Blueprint for Change
  69. 69. BUILD THE CASE 69 BACKGROUND (How did we get here?) CURRENT STATE (Where are we now? What’s not working?) COSTS (How will we suffer if it continues?) FUTURE STATE (What would it look like if it improved?) BENEFITS (What are the benefits of making the change?) FIRST STEPS (what initial steps are needed?) Create Urgency: • Use data • Create data • Tell stories
  70. 70. INSPIRE WITH A CHANGE VISION 70 Why is this future state more beneficial to employees, the company, or our customers? What would they feel they have gained once this future state has arrived? Show the benefits – the practical, positive effects of the change Vision the Future: • It looks like… • It feels like… • Our clients will increase… • Investors will flock… • Morale will improve… Think about a headline that you’d like to appear in the Financial Times in a year from now.
  71. 71. ROLES 71 Change Agent TargetSponsor
  72. 72. FOLLOW THE LEADER? 72
  73. 73. THE SPONSOR • Has authority, resources, and accountability • Understands the change & must be committed to it • Puts into place change systems • Focuses on the Desired State • Empowers Change Agents 73
  74. 74. LEADERS CREATE CULTURES • ‘Unfreeze’ current state by highlighting organisational threats if no change occurs, while making others believe that change is possible and desirable • Articulate a new direction and a new set of assumptions – act as deliberate role models • Reward new behaviours, punish old ones – create critical incidents • ‘Seduce’ or coerce employees into adopting new behaviours • Create visible scandals to discredit sacred cows, explode myths, symbolically destroy artifacts of the past 74 Edgar ScheinLeaders as the Primary Embedding Mechanism
  75. 75. WALK THE TALK (SHAPE THE CULTURE) • Engage people in dialogue about the performance culture • Live the culture you want • Use symbols effectively • Measure and reward exactly what you want • Only make decisions that reinforce the desired culture • Invest resources (money, people, time) in the desired culture • Involve people – the more involvement, the greater acceptance • Change the role of information 75
  76. 76. SECONDARY MECHANISMS 76 Secondary Articulation & Reinforcement Mechanisms • Organisation design & structure • Organisational systems & procedures • Organisational rites & rituals • Design of physical space, facades, and buildings • Stories, legends, and myths about people and events • Formal statements of organisational philosophy, values, and
  77. 77. SUPPORTING MECHANISMS 77 Calibration Sessions • To get alignment between business, team, and individual performance • Using some ’benchmarks’ for a common ’metric’ …. Feedback & Other Training • To skill-up managers and employees in how to give constructive feedback and proactively use process, coach, etc. Employee Surveys & Audits • To assess frequency of real-time feedback, and increase in meaningfulness of conversations • To incentivise managers • To hear from employees Role Models & Champions • To have executive leaders ‘walk the talk’ • To identify managers who are good at giving feedback and developing others
  78. 78. 78 CALLS TO ACTION Join the Effective Performance Management Community of Practice on LinkedIn to share your experiences and learn about best practices Complete the Performance Management Trends in Slovakia survey https://www.surveymon ovakia e-authority-guide-to-performance- management/
  79. 79. BACK-UP 79
  80. 80. CHECK-INS 80 LEADER AS COACH Not an add-on to leader tasks, but the actual work of a leader • Every team leader ‘checks-in’ with each team member at least 1x a week • Focus is on near-term, future performance (‘What are you working on this week, what are your priorities, how can I help you achieve them?’) • Future-focused coaching session on what the person should be focusing on this week, what they might like to do differently, support • Not an add-on to leader tasks, but comprises the work of a leader Effective leaders have frequent conversations with their teams, typically once a week TEAM MEMBER- DRIVEN Best way to ensure frequency is for team members to initiate FREQUENT If you want people to talk about how to do their best work in near future, need to talk often
  81. 81. Manager as Coach Future-focused No ratings Individual performance objectives based on specific business objectives eMpower Recognition programme based on: • Fostering Participation • Recognising Performance • Maximising Employee Potential Performance Acceleration
  82. 82. NO LABELS 82 Managers accountable for substantively guiding performance (i.e., no ratings or distribution guidance) Managers empowered to spend within budget Real-time performance & development conversations Process simplification Leadership team discussion focused on alignment of standards
  83. 83. January to January Performance Focus July to July Development Focus MY CAREER ANNUAL PROCESS • Review and close old business goals • Establish new business goals • Review development goal progress • Review and close old development plan • Establish new development plan • Review business goal progress On-going performance & development discussions On-going performance & development discussions • Employee-led • No forms, unstructured • Discussions not tracked
  84. 84. TALENT MATTERS 84 • Self-developed objectives aligned with 5 common performance dimensions • Future-focused evaluation (managers & employees), using past performance as context for future plans in 4 Cs • Sharing calibration results to communicate relative ranking across peer groups • Frequent conversations (2x-a-year “Conversation Day”) to discuss future aspirations (career goals and capabilities) that set the stage to discuss performance (contributions and connections) and develop improvement goals On Conversation Day, 88% rated their conversations as “helpful” or “very helpful
  85. 85. AUCKLAND COUNCIL - FLIPPING PERFORMANCE MANAGEMENT ON IT’S HEAD What are we trying to achieve? Why did we need a change? The traditional annual review approach wasn’t adding value: - The review produced ratings, which related to pay increases - The focus was on the process, not the quality of conversations. - Employees and leaders said it was time consuming, rigid and stressful, doing little to support great performance So was all that time and effort a good use of resources? The evidence said no. What we created A conversation framework called My Time, with conversation tools for the employee and coaching prompts for leaders, based on four elements: Align – the priorities for the team with the contribution of the individual employee Build – the strength of the employee–leader relationship, and build individual performance and development goals Check-in – on work underway, what’s working well, what’s getting in the way Deliver – what we commit to. Review achievement of goals and celebrate success. This conversation framework is supported by: - A team plan – created with the leader and their team. This creates visibility of what the team is trying to achieve , how it fits into the bigger picture and how the individual can contribute to it - A recognition framework to recognise great work, demonstrate what great looks like and encourage high performance behaviours - Development guidance and conversation tools to support the employee in taking ownership of their own development and career. A culture of high performance where employees have greater ownership of their own performance. This starts with a mind- set shift: - Employees set their goals and identify what support they need to achieve these - Leaders act as coach, providing guidance and encouraging employees to lead discussions, offer their ideas and come up with solutions - It is a partnership where the employee and leader work together to achieve goals - Frequent quality conversations are the vehicle for this. The results so far… An organisation-wide survey was conducted six months after launch. The results reported that: - Both managers and employees were experiencing benefits of My Time – the process is simpler, more flexible and it reduced process and administration - Employees were more likely to have frequent performance conversations - Employees using My Time were more likely to positively rate the statement ‘I feel my contribution is valued in this organisation’- one of Auckland Council’s top 10 engagement drivers. We see consistent use of the online portal that houses all the tools and resources. 28