Get Rid of Performance Appraisals
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Performance Appraisals Are incompatible with Agile Mindset @lgoncalves1979 www.holidaycheck.de
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Performance Reviews are based on completely wrong assumptions. Companies still think that Performance Reviews are great tools to provide feedback, to set goals and to improve the individuals. All this is pure nonsense and in reality Performance Reviews are a cancer for our companies and they need to be removed.
Transcript of Get Rid of Performance Appraisals
Performance Appraisals
Are incompatible with Agile
Mindset
@lgoncalves1979 www.holidaycheck.de
A Mandatory Process
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That is Specific for a Period of Time
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Where all or a group of employees
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Work Performance
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Is Rated or Judged
https://www.flickr.com/photos/triplexpresso/
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By a person other than the rated employee
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And the Results are kept by the organization
@lgoncalves1979 www.holidaycheck.deBy Tom Coens and Mary Jenkins
Let´s go back in time
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1900’s
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Today´s World
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Let´s see what research found out
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Society for Human Resources Management
90% of performance appraisals systems are
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not successful
95% of H.R professionals said they were
very unsatisfied with their performance management systems
Aon Consulting and the Society of Human Resources Management@lgoncalves1979
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Why?
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Why?@lgoncalves1979
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Why?@lgoncalves1979
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We still use this…
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@lgoncalves1979 www.holidaycheck.de
Practice
Because it serves multiple purposes
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Company Improvement (Goals and Targets)
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“Give a target to a manager and he will do anything to achieve it even if he destroy the company on the way”
by W. Edwards. Deming
Feedback & Communication
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Coaching - Personal Development
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Compensation and Bonus
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Promotions
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Legal Documentation
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And companies do not know how to detach them
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Why Performance Appraisals are broken
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I want to tell you a story
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@lgoncalves1979 www.holidaycheck.de
• One of the worst factories in the USA
• 20% of people did not show up on
daily basis
• Consumption of alcohol and drugs
was high
New United Motor Manufacturing
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• 85% of the initial work force was re-hired
• Extensive TPS training provided
• 400 trainers sent to USA
• 600 workers sent to Japan
• 1 year = least amount of defects and lowest cost of
production in whole USA
• Less than 3% of people did not show up
• Alcohol and drug consumption was drastically reduced
GM and Toyota
We work in Complex Systems
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Individual Performance
Coens, Tom; Jenkins, Mary (2002-10-12). Abolishing Performance Appraisals
Stop!!!
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PA fails as a Rating Device
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Categorization and Stereotype Tendencies
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People-I-Like-Favoritism
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Gender, Race, and Age Bias
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PA fails as a Rating Device
We cannot avoid this simply because we are:
HUMAN@lgoncalves1979
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The worst is still to come…
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Performance Appraisals Causes Sub Optimization
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“You can destroy a corporation by improving its individual parts. Try putting a Rolls Royce engine in a Hyundai”
by Russel Ackoff
Performance Appraisals destroy innovation in companies
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Performance Appraisals destroy improvement efforts in our
companies
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Performance Appraisals Punish People
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Performance Appraisals crash intrinsic motivation
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I AM GOING TO GO AHEAD AND ASK YOU TO DELIVER 10 STORIES NEXT
SPRINT...
Special thanks to [email protected] for providing this fantastic slide
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velocityAverage=LCLUCL
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Actual, measured throughput over 21 sprints
Special thanks to [email protected] for providing this fantastic slide
Performance Appraisals Builds fear
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Performance Appraisals demolishes teamwork
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Where to go instead
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There is no Magic Formula…
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Get Rid of Performance Appraisals
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Get rid of monetary incentives
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Start with Safe Experiments
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Organizational Improvement (Goals and Targets)
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Company Improvement (Goals and Targets)
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• Create a clear vision where the company wants to go
• Create a clear purpose of what the company wants to
achieve
• Communicate a concise list of organizational goals
• Let people to create their own goals aligned with the
big picture
• More in: http://GetRidOfPerformanceAppraisals.com/
Feedback & Communication
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Feedback & Communication
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• Scale Retrospectives on whole organization
• Information radiators
• Feedback Sessions
• Feedback walls
• More in: http://GetRidOfPerformanceAppraisals.com/
Coaching - Personal Development
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Personal Development
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• Create a culture of continuous education
• Communities of Practice within the company
• Dojos ( Coaching, Coding, Testing, etc)
• 1:1 Mentoring programs from different
colleagues, within different areas
• More in:
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Compensation
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Compensation
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• Do Research on the market and decide
which part of the market you want to
belong to
• Increase salaries based on inflation + %
• Make salaries transparent
• More in: http://GetRidOfPerformanceAppraisals.com/
Promotions
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Promotions
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• Follow a normal interview process
• Hire companies that are specialized in
recruitment
• People can only be promoted if “elected”
by peers
• More in: http://GetRidOfPerformanceAppraisals.com/
Legal Documentation
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Legal Documentation
• Do it only when mandatory, e.g. trial periods
• Most of the cases you do not require to have
documents for legal reasons:
– you can use email
– colleague feedback
– customer feedback
• More in:
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I have a dream…
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I want you…
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To be part of this dream
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Let´s create a movement
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Purpose
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Mastery
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Autonomy
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Because…
“All anyone asks for is a chance to work with pride”
Thank you
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Be a Beta Reader: http://GetRidOfPerformanceAppraisals.com/
