Continuous Performance Management - An Adoption Roadmap

Gautam Jayasurya
Gautam JayasuryaHR Professional en Tata Institute of Social Sciences
Continuous Performance
Management Adoption
A Roadmap
“Coming together is a beginning;
keeping together is progress; working
together is success.”
Gautam Jayasurya, Avinav Prakash,
Akshay Ravindran
goutamjay@gmail.com
2
Lack of
Portal Adoption
Cumbersome
Feedback
Documentation,
Overlapping
Project Periods
Accommodating
Negative Feedback
Inefficient
Appraisal, Delayed
Course Correction,
Adjusting for
Transfers
Flexibility in fixing a suitable
time horizon for ratings
Focus shifting from performance
assessment to employee
development
Unlocking time for managers through
brief, instantaneous precise task based
performance ratings
Step 7 - ‘4Q’ Competency Based Potential Assessment
Step 6 - Identification of Top Talent (Talent 5)
Step 5 - Pay for Performance Without Performance Ratings
(Long Term)
Step 4 - Transitioning Away From Performance Rating
(Long Term)
Step 3- Reinventing Continuous Performance Management
(Short Term)
Step 2 - Dialog Tool Adoption Plan
Step 1 - Re-Defining Performance Management Pillars
3
Performance
•Should be intrinsically
motivated.
To identify potential to create
future talent pool
Regular check-ins for
continuous improvement
To be driven by competency
development and not by lure of
monetary rewards
Rewards
Differentiation only for top
talent (“A” players)
Rewards are just a means to
develop future talent
Acknowledge the results of A
players in RPG
Rewards to be paid above the
market standards
Coaching
Onus on line managers to
prepare managers for future
strategic roles
Close monitoring of potential
and providing pathways to
perform
Providing platform to build
task-specific competencies:
Mentors, Development Centres
Competent managers will
contribute to organisational
excellence
4
Easier & Vibrant Feedback
Process on Dialog
Encouraging Multimedia
Feedback on Dialog
•Option to upload images,
audio recordings and video
feedback.
•Option to share feedback
on employee profile in RPG
HUB with the permission
of both parties
Transforming RPG HUB to a
Learning and Recognition
Platform
•Articles on self-development
and performance
enhancement
•Open Peer2Peer recognition
through RPG Terribly Tiny
Tales – appreciating a peer for
good work
RPG Talent One Points –
awarded for each learning &
recognition activity
convertible to non-monetary
rewards.
Increased Dialog Functionalities
Mentorship Bulletin Boards
(Private & Public)
Peer2Peer Review System for
Team Tasks
Activating 24*7 360-degree
feedback mechanism by
awarding RPG Talent One
Points.
Enable “ Mobile Goal
Management” for efficiently
handling of goals
5
Annual Check-Out Meeting
Cumulative Average of Task Based Performance
Ratings
Development Plan = Manager’s Inputs
Competency Based Potential Assessment (1-5) – Basis of Top Talent/Promotions
Frequency: Annually Qualitative Comments Enabled
Task Based Performance Rating (Scale of 1-5) - Basis of Bonus + YoY Increment
Frequency: On Completion of every Task Qualitative Comments Enabled
Tasks Updated on Dialog
Floor: LM’s discretion Target: LM’s discretion Weightage: LM’s discretion
Goal Setting
Cascading of Goals -> KPA -> Tasks
Assigning Weightage & Floors for Goals – Functional
Level
Year-Round
Comments &
Ratings
Dynamic
Employee
Development
6
Assessment: % of No. of
Completed Tasks/Total Assigned
Tasks
Cut off: Minimum percentage of
completed tasks to be completed to
be retained in the organisation
Eligibility of Bonus: Employees
clearing of Minimum Performance
Cut-offs
Grant of Bonus: On achievement of
organisational and functional
targets
Objective Achieved: High
Performance Organisation
Cut off decided at a functional level during Goal
Setting
Assessment Frequency: Task-wise via Dialog
Check-ins: Monthly (Adobe, 2018)
Bonus is a direct linear function of organisational
or functional target & budget
Appellate mechanism to HR – Tripartite
Conciliatory Meeting With HR & Line Manager
7
Assessment: % of No. of Completed
Tasks/Total Assigned Tasks
Cut off: Minimum percentage of
completed tasks to be completed to be
retained in the organisation.
Silver Incentive: Market rate of X% for
employees clearing of minimum cut-
offs (say, 85% of target)
Gold Incentive: Market rate of X+N%
For employees clearing of upper
ceiling. (say, >95% of target)
Objective Achieved: High
Performance Organisation
Assessment Frequency: Task-wise via Dialog
Check-ins: Monthly
Cut offs decided at a functional level during Goal
Setting.
Identification of “A” and “B” players and
X% & (X+N)% is determined by management
council.
Feedback on Tasks every month
Course-Correction
8
995 Managers
(~0.4 % of
Total FTE)
Level 1: 175
Level 2: 45
Level 3: 5
Talent Review: Level 1
Measure: Performance
Metric: Managers achieving Gold
incentive
Talent Review: Level 2
Measure: Potential
Metric: 4Q Competency Based Potential
Assessment (Explained in next slide)
Talent Review: Level 3
Measure: Potential
Metric: Assessment Centre + Personal
Interview by Business Leaders
Only “A” players are
eligible to be part
of “Talent 5”
Competencies
meeting RPG talent
standards
Talent 5
Aspirational
benchmark for RPG
managers
9
Frequency:
Annually
Floor: Role Based
Standards
Target: Role Based
Standards
Weightage: Role
Based Standards
Strategic
Thinking
•Has scanned the
environment w.r.t future
course of action
•Has acquired behaviours
to identify/analyse
unexplored possibilities
•Has behaviour to
conceptualise the
possibilities
Has behaviours to test the
impact of resulting
changes
Customer
Orientation -
RATER Model
Has delivered promised
service sustainably
Has ability of the
stakeholders to convey
trust to the customers
Has shown individualised
care and grievance
handling
Prompt reaction to
customer needs
Cross-
Functional
Orientation
Has shown interest in
understanding business
as whole
Has ability to adapt to
changes
Shows right behaviours to
appreciate diversity in the
team
Has been inclusive of
others ideas and opinions
Emotional
Quotient
Has control over
emotions/ moods
Can handle complexity
and uncertainty
Has ability to build
rapport with stakeholders
Has ability to coach others
and provide feedback
10
Annual
Salary*
No. Of
People
Increment
at Market
10%
No. Of
top
talent
(10%)
Increment
of 10+2%
CTC
CXO -
Functional
Head
₹
35,00,000
5 ₹ 3,50,000 0.5 ₹ 4,20,000 ₹ 19,60,000
Senior
Manager
₹
20,54,000
30 ₹ 2,05,400 3 ₹ 2,46,480 ₹ 69,01,440
Manager
₹
13,25,500
560 ₹ 1,32,550 56 ₹ 1,59,060 ₹ 8,31,35,360
Junior
Manager
₹
11,46,000
100 ₹ 1,14,600 10 ₹ 1,37,5200 ₹ 1,28,35,200
Executive L2
₹
6,98,500
200 ₹ 69,850 20 ₹ 83,820 ₹ 1,56,46,400
Executive L1
₹
3,60,000
100 ₹ 36,000 10 ₹ 43,200 ₹ 40,32,000
995 ₹ 12.5 Crores
Savings Head
Per Unit
Saving/Year/FTE **
Total Saving
ROI Through
Transparency
210 hours
/Performance Report
Processing
8706 Man-
days =
Rs. 3.2
Crores
ROI Through
Prompt
Insights
10% Improvement in
Productivity
(X% increase of
productivity = X%
saving in CTC)
Rs. 1.3
Crores
ROI Through
Motivation
ROI Through
Guided
Coaching
ROI Through
High
Performance &
Learning
Culture
ROI Through
Retention (Cost
of Hiring = 1.5
CTC)
4% reduction in
Attrition
40 FTEs * 1.5
* CTC = 8
Crores
Total 12.5 Crores
*Glassdoor.com; **Deloitte Annual HR Trends Report; Corporate
Executive Board Survey
1 de 10

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Continuous Performance Management - An Adoption Roadmap

  • 1. Continuous Performance Management Adoption A Roadmap “Coming together is a beginning; keeping together is progress; working together is success.” Gautam Jayasurya, Avinav Prakash, Akshay Ravindran goutamjay@gmail.com
  • 2. 2 Lack of Portal Adoption Cumbersome Feedback Documentation, Overlapping Project Periods Accommodating Negative Feedback Inefficient Appraisal, Delayed Course Correction, Adjusting for Transfers Flexibility in fixing a suitable time horizon for ratings Focus shifting from performance assessment to employee development Unlocking time for managers through brief, instantaneous precise task based performance ratings Step 7 - ‘4Q’ Competency Based Potential Assessment Step 6 - Identification of Top Talent (Talent 5) Step 5 - Pay for Performance Without Performance Ratings (Long Term) Step 4 - Transitioning Away From Performance Rating (Long Term) Step 3- Reinventing Continuous Performance Management (Short Term) Step 2 - Dialog Tool Adoption Plan Step 1 - Re-Defining Performance Management Pillars
  • 3. 3 Performance •Should be intrinsically motivated. To identify potential to create future talent pool Regular check-ins for continuous improvement To be driven by competency development and not by lure of monetary rewards Rewards Differentiation only for top talent (“A” players) Rewards are just a means to develop future talent Acknowledge the results of A players in RPG Rewards to be paid above the market standards Coaching Onus on line managers to prepare managers for future strategic roles Close monitoring of potential and providing pathways to perform Providing platform to build task-specific competencies: Mentors, Development Centres Competent managers will contribute to organisational excellence
  • 4. 4 Easier & Vibrant Feedback Process on Dialog Encouraging Multimedia Feedback on Dialog •Option to upload images, audio recordings and video feedback. •Option to share feedback on employee profile in RPG HUB with the permission of both parties Transforming RPG HUB to a Learning and Recognition Platform •Articles on self-development and performance enhancement •Open Peer2Peer recognition through RPG Terribly Tiny Tales – appreciating a peer for good work RPG Talent One Points – awarded for each learning & recognition activity convertible to non-monetary rewards. Increased Dialog Functionalities Mentorship Bulletin Boards (Private & Public) Peer2Peer Review System for Team Tasks Activating 24*7 360-degree feedback mechanism by awarding RPG Talent One Points. Enable “ Mobile Goal Management” for efficiently handling of goals
  • 5. 5 Annual Check-Out Meeting Cumulative Average of Task Based Performance Ratings Development Plan = Manager’s Inputs Competency Based Potential Assessment (1-5) – Basis of Top Talent/Promotions Frequency: Annually Qualitative Comments Enabled Task Based Performance Rating (Scale of 1-5) - Basis of Bonus + YoY Increment Frequency: On Completion of every Task Qualitative Comments Enabled Tasks Updated on Dialog Floor: LM’s discretion Target: LM’s discretion Weightage: LM’s discretion Goal Setting Cascading of Goals -> KPA -> Tasks Assigning Weightage & Floors for Goals – Functional Level Year-Round Comments & Ratings Dynamic Employee Development
  • 6. 6 Assessment: % of No. of Completed Tasks/Total Assigned Tasks Cut off: Minimum percentage of completed tasks to be completed to be retained in the organisation Eligibility of Bonus: Employees clearing of Minimum Performance Cut-offs Grant of Bonus: On achievement of organisational and functional targets Objective Achieved: High Performance Organisation Cut off decided at a functional level during Goal Setting Assessment Frequency: Task-wise via Dialog Check-ins: Monthly (Adobe, 2018) Bonus is a direct linear function of organisational or functional target & budget Appellate mechanism to HR – Tripartite Conciliatory Meeting With HR & Line Manager
  • 7. 7 Assessment: % of No. of Completed Tasks/Total Assigned Tasks Cut off: Minimum percentage of completed tasks to be completed to be retained in the organisation. Silver Incentive: Market rate of X% for employees clearing of minimum cut- offs (say, 85% of target) Gold Incentive: Market rate of X+N% For employees clearing of upper ceiling. (say, >95% of target) Objective Achieved: High Performance Organisation Assessment Frequency: Task-wise via Dialog Check-ins: Monthly Cut offs decided at a functional level during Goal Setting. Identification of “A” and “B” players and X% & (X+N)% is determined by management council. Feedback on Tasks every month Course-Correction
  • 8. 8 995 Managers (~0.4 % of Total FTE) Level 1: 175 Level 2: 45 Level 3: 5 Talent Review: Level 1 Measure: Performance Metric: Managers achieving Gold incentive Talent Review: Level 2 Measure: Potential Metric: 4Q Competency Based Potential Assessment (Explained in next slide) Talent Review: Level 3 Measure: Potential Metric: Assessment Centre + Personal Interview by Business Leaders Only “A” players are eligible to be part of “Talent 5” Competencies meeting RPG talent standards Talent 5 Aspirational benchmark for RPG managers
  • 9. 9 Frequency: Annually Floor: Role Based Standards Target: Role Based Standards Weightage: Role Based Standards Strategic Thinking •Has scanned the environment w.r.t future course of action •Has acquired behaviours to identify/analyse unexplored possibilities •Has behaviour to conceptualise the possibilities Has behaviours to test the impact of resulting changes Customer Orientation - RATER Model Has delivered promised service sustainably Has ability of the stakeholders to convey trust to the customers Has shown individualised care and grievance handling Prompt reaction to customer needs Cross- Functional Orientation Has shown interest in understanding business as whole Has ability to adapt to changes Shows right behaviours to appreciate diversity in the team Has been inclusive of others ideas and opinions Emotional Quotient Has control over emotions/ moods Can handle complexity and uncertainty Has ability to build rapport with stakeholders Has ability to coach others and provide feedback
  • 10. 10 Annual Salary* No. Of People Increment at Market 10% No. Of top talent (10%) Increment of 10+2% CTC CXO - Functional Head ₹ 35,00,000 5 ₹ 3,50,000 0.5 ₹ 4,20,000 ₹ 19,60,000 Senior Manager ₹ 20,54,000 30 ₹ 2,05,400 3 ₹ 2,46,480 ₹ 69,01,440 Manager ₹ 13,25,500 560 ₹ 1,32,550 56 ₹ 1,59,060 ₹ 8,31,35,360 Junior Manager ₹ 11,46,000 100 ₹ 1,14,600 10 ₹ 1,37,5200 ₹ 1,28,35,200 Executive L2 ₹ 6,98,500 200 ₹ 69,850 20 ₹ 83,820 ₹ 1,56,46,400 Executive L1 ₹ 3,60,000 100 ₹ 36,000 10 ₹ 43,200 ₹ 40,32,000 995 ₹ 12.5 Crores Savings Head Per Unit Saving/Year/FTE ** Total Saving ROI Through Transparency 210 hours /Performance Report Processing 8706 Man- days = Rs. 3.2 Crores ROI Through Prompt Insights 10% Improvement in Productivity (X% increase of productivity = X% saving in CTC) Rs. 1.3 Crores ROI Through Motivation ROI Through Guided Coaching ROI Through High Performance & Learning Culture ROI Through Retention (Cost of Hiring = 1.5 CTC) 4% reduction in Attrition 40 FTEs * 1.5 * CTC = 8 Crores Total 12.5 Crores *Glassdoor.com; **Deloitte Annual HR Trends Report; Corporate Executive Board Survey