The way we work today has changed. When it comes to modernizing the performance management process in an organization, annual reviews and competencies don’t cut it anymore. Focusing on informal performance check-ins is a start, but it’s not enough.
In this presentation, we discuss how you can make a strategic shift in your performance management program with the 5 essential elements to creating a high-performance culture.
Gain insights into:
• Why—and how—organizations that engage in strategic performance management outperform their competitors
• Best practices for implementing performance processes that align, engage and inspire your people
• And how it all integrates into your talent management framework
As performance management continues to evolve from an isolated HR-driven process to an intrinsic part of everyday business rhythms, discover why you should emphasize increased engagement through employee satisfaction and contribution.
3. AGENDA
What we’ll cover in today’s webinar:
The 5 Essentials to Modern Performance
Management
1. Goals
2. Feedback and Recognition
3. Development
4. Performance Check-ins
5. Managers
and how to Transition from Old to New!
4. WHAT IS THE PROBLEM?
Only 8% believe their
PM process is
WORTH THE TIME
Over 70% want to
REDESIGN and
simplify the process
Top 2 CEO concerns
are RETENTION and
ENGAGEMENT
4Sources: Bersin by Deloitte 2015, Gallup 2014, DDI leadership Forecast 2014/2015, Brandon Hall 2015
Companies are struggling to make their overly complex performance management
process simpler, more coaching-oriented, and more focused on development
5. THE EVER CHANGING WORKPLACE
Every aspect
of an
employee’s
work life is
experiencing
profound
change
Ineffective
collaboration
- leading to
burnout of
“extra-milers”
Growing use
of contingent
workforces
Dealing with
multiple
generations,
cultures,
geographies
Insufficient
access to
data to make
talent
decisions
8. CHANGES IN CONTROL
HR SENIOR LEADERS MANAGERS INDIVIDUALS TEAMS
Change or decrease in historical
approach to performance
documentation
Decrease in perceived control over
goals resulting from reduction of
cascaded goals
Increase in managers' latitude to
give continuous feedback based
on their own and others'
perspectives
Increase in responsibility for
performance, ranging from setting
goals to appropriately accepting
and responding to feedback, to
bringing in manager / coach as
appropriate to help respond to
feedback
Increase in team members'
responsibilities to identify teams'
goals, connect their own to them,
and stay in sync with them
throughout the year
Decrease in formalization of
performance review process
Decrease in control over feedback
provided to employees (in the
form of ratings)
Increase in expectation of
managers' skills / capabilities as
coaches; decrease in managers'
command-and-control role
Increase in responsibility for
maintaining alignment throughout
the year with overall company
goals, team goals, and colleagues'
goals
Increase in necessity to identify
team members, team objectives,
and individual roles and
responsibilities
Decrease in extent to which HR
has insight into where managers /
employees are in the process (e.g.,
number of 1:1s, appraisal
completion rates)
Change in types of performance
management data (e.g., decrease
in data on evaluation completion
rates, but potentially increases in
other types / frequencies of data)
Decrease in managers'
responsibilities as ultimate
accountability driver, and increase
in responsibility as coach and
leader
Increase in responsibility to give
feedback (positive and
constructive) that helps colleagues
/ teammates improve their
performance
Increase in importance of team
work to individuals' performance
evaluations
8Source: Bersin, Deloitte Consulting LLP, 2017.
9. WHAT IS
PERFORMANCE
MANAGEMENT?
An ongoing process
intended to improve the
performance of people in
an organization.
Performance
Check-ins
4.
9
Feedback &
Recognition
2.
Managers5.
Development
3.
Goals1.
11. 11Source: HCI | The Corporate Strategy Board | IDC | Brandon Hall
Less than 50% of employees
KNOW WHAT IS EXPECTED
of them at work.
MISALIGNMENT
The average employee
is spending HALF OF THEIR
TIME on non-productive work.
WASTED PRODUCTIVITY
Employees that don’t fully
understand their job costs
companies $37 BILLION.
HIGHER COSTS
15. 15
70% of employees
state that they are
recognized once
per year or not at all.
70%
YET…
FEEDBACK HELPS
EMPLOYEES GROW
AND FEEL VALUED
Source: Gallup
16. 16
THE IMPACT OF FEEDBACK
Source: Feedback Is The Killer App: A New Market and Management
Model Emerges: Forbes (Josh Bersin) Original data by Workboard
ENGAGED EMPLOYEES DISENGAGED EMPLOYEES
RECEIVE NO FEEDBACK
RECEIVE STRENGTH-
BASED FEEDBACK
RECEIVE CONSTRUCTIVE
FEEDBACK
17. The number one reason
feedback falls off the radar
– we’re too busy
18. HOW TO PROVIDE EFFECTIVE FEEDBACK
Explain to your colleague
exactly which behavior or
action was observed and
when it happened – the
key here it to be specific.
Communicate the impact
the behavior or action had
on the business/team and
why the behavior did or
did not support success.
Collaborate to determine
the best course of action
to reinforce or remedy the
behavior or actions taken.
OBSERVATION IMPACT ACTION
20. TODAY AND TOMORROW…
Building the capabilities of people who are meeting or
exceeding job expectations… to ensure success in their
current role and to prepare them for future opportunities.
21. 21
62% lower turnover rate
among high performers.
LOWER TURNOVER
64% of employees would like
more focus on development
EMPLOYEE SATISFACTION
2X the median
revenue
HIGHER REVENUE
2x
64%
Source: Bersin by Deloitte
THE VALUE OF LEARNING & DEVELOPMENT
22. ONLY 37% of leaders rated the
quality of their organization’s
development programs as
HIGH or VERY HIGH.
DID YOU KNOW?
Source: Global Leadership Forecast (DDI) 2014 Survey
25. LEARNING DRIVES PERFORMANCE
AND GOAL ACHIEVEMENT
25
PERSONAL GOALS/NEEDS
Would like to develop skills to
resolve higher-level issues.
ORGANIZATION
GOALS/NEEDS
New strategic initiative
to build customer loyalty.
GROUP GOALS/NEEDS
The customer service
department’s goal is to
increase customer retention
by 2% this year.
26. HOW WE LEARN
10% 90%
FORMAL LEARNING EXPERIENCE & EXPOSURE
• Online training
• Instructor-led
sessions
• Assessments
• Feedback
• Observation
• Shared experiences
• Job shadowing | rotation
• Mentoring
• Coaching
• Networking
• New job assignments
• Cross-functional assignments
• Stretch assignments
• Professional groups
• Books
• Blogs
• Wikis
• Seminars or conferences
• Webinars
• Podcasts
• Mobile apps
• Communities of practice
• MOOCs
27. Development plans are the
intersection between many
talent management disciplines
Bersin by Deloitte, 2012
Performance
Management
Leadership
Development
Succession
Management
Career
Management
Learning
CONNECTION
TO TALENT
MANAGEMENT
INDIVIDUAL
DEVELOPMENT
PLAN
31. 31
HALF OF EMPLOYEES
have left their job to get away
from their manager at some
point in their career.
Employees whose managers
hold regular meetings with
them are almost 3X AS LIKELY
TO BE ENGAGED.
MANAGERS ACCOUNT FOR
AT LEAST 70% of variance in
employee engagement
scores.
3x
70%
Source: State the American Workplace – Gallup
33. FIVE STEPS TO CHANGE
UNDERSTAND
if you are
culturally ready to
make this shift
COMMUNICATE
the value to
employees and
leaders – what’s in it
for them?
ALIGN
implementation to
strategic priorities
and set realistic
milestones
PROVIDE
TRAINING
– a critical
component
SOLICIT
FEEDBACK
to refine the
process
34. PERFORMANCE needs to be “part
of” your unique business rhythm and
the heart of your talent strategy!