Proactive Performance Management

Presented by

Marion Stone

Agenda

1. Where does performance management break down?

2. Performance management unpacked

3. Proactive performance management

4. Case Studies

5. Questions and close

Agenda

1.1. Where does performance management Where does performance management break down?break down?

2. Performance management unpacked

3. Proactive performance management

4. Case Studies

5. Questions and close

1. Where Does Performance Management Break Down?

Manager sees no business benefit

Internet Forms

Agenda

1. Where does performance management break down?

2.2. Performance management unpackedPerformance management unpacked

3. Proactive performance management

4. Case Studies

5. Questions and close

2. Performance Management Unpacked

A set of management practices that – • Establish measurable goals and objectives for

employees• Assess achievement of those goals and

objectives• Use this information to improve performance

(through development and reward)

Performance management is management!

Why do we do Performance Management?

Bersin & Associates 2010

Summary of the nine ‘A’ level performance drivers and the impact

for performance management.Building the High Performance Workplace, CLC, April 2003

Performance Management Process Category

Performance Driver

Overall performance improvement (%)

Direct Impact on performance (%)

Informal feedback Fairness & accuracy of feedback

39 34

Performance culture Risk taking 39 29

Formal Review Emphasis on performance strengths

36 31

Performance Management System

Employee understanding of performance standards

36 31

Performance Culture Internal communication 30 27

Informal Feedback Manager knowledgeable about performance

30 30

Job opportunities Opportunity to work on the things you do best

29 25

Informal Feedback Feedback that helps employees do their jobs better

26 20

Job opportunities Opportunity to work for a strong leadership team

26 26

What happens if you don’t manage performance?

• No clear objectives and direction• No feedback to get people back on

track leading to poor productivity• Low levels of training & dev (because it

wasn’t identified in the first place)

• No objective link between effort and reward

• Low morale

What exactly is performance?

Performance takes into account - • The quality of the work produced (attention to

detail)• The approach to work (behaviours)• Work habits (e.g. lateness, gossiping)• Deadlines and targets achieved

Agenda

1. Where does performance management break down?

2. Performance management unpacked

3.3. Proactive performance managementProactive performance management

4. Case Studies

5. Questions and close

3. Proactive Performance Management

Proactive performance management – • Drives the business strategy• Is a process• Sets clear expectations/ standards• Capable managers

Link to Business Strategy

Need both to define ‘Performance’

WHAT HOW

Food for thought

“Of all the things I've done, the most vital is coordinating the people who work with me and aiming their views at a certain goal.”

Walt Disney

Performance Cycle

Job Description/ Role Profile

Setting Clear Expectations

Standards must be – • Aligned• Support the ‘what’ and the ‘how’• Specific• Measurable• Outputs (not inputs)

Task vs. Objectives

Defining Performance - Objectives

KEY PERFORMANCE AREAS

OBJECTIVES or OUTPUTS ACTIONS MEASURES or KPI’s

Sales Sales Targets set in Business Plan achieved

Compile and maintain a store call plan

Store plan available and up to date

Call on stores according to store plan

Stores visited once every 2 weeksTime efficiency maximisedStore manager or Dept Supervisor metStock levels and expiry dates checkedOrders compiled for store approvalOpportunities identified and recommendations madeStore report form completed

Defining Performance - Behaviours

BEHAVIOUR BEHAVIOURAL INDICATORS1. Analytical Thinking/

Problem SolvingThe ability to gather,

analyse and effectively use information to solve problems

Breaks down problems into steps Collects data and information required to

identify the root cause of the problem Uses good judgement in selecting the best

option Makes rational, well thought through decisions

even when under pressure2. Supporting TeamworkThe ability and drive to

work co-operatively with others to achieve a shared goal, rather than independently

Builds collaborative relationships with colleagues and stakeholders

Shares their expertise with others Involves others in decisions Participates in discussions and supports

decisions Enhances and promotes team spirit

Behaviours Drive Performance

Capable Managers

The best systems will fail when implemented by unskilled people!

The role of the manager

“Select a person, set expectations, motivate the person and develop the person.”

Marcus Buckingham

Why do managers avoid managing performance?

• It is difficult giving bad news• The lack of appreciation of the impact of one

poor performer on the organisation• Managers don’t know how to manage

performance• Lack of time

What to do?

• Clarify what you expect of your managers• Measure them on how well they manage their

team and the performance of their team• Educate them on the consequences for the

organisation if poor performance is not addressed (Think lost sales, high waste, customer complaints)

• Equip them with the skills to manage performance effectively

Technical Expert vs. Manager

Manager skills now include – • Setting objectives and directionSetting objectives and direction• Reviewing performanceReviewing performance• Recruiting• Coaching/ trainingCoaching/ training• MotivateMotivate• Industrial relations• Partnering and influencing

No wonder managers struggle!

Finding Skills

Quite simply we avoid doing what we do not know how to do!

Think tax returns, cooking a gourmet meal, fixing that gutter etc

Skills should include feedback,

coaching and how to deal with difficult discussions

Finding Time!

Quite simply we don’t find time for those things that we do not know how to do!

Did you find time to watch you favourite TV programme in the last week?

Agenda

1. Where does performance management break down?

2. Performance management unpacked

3. Proactive performance management

4.4. Case StudiesCase Studies

5. Questions and close

4. Case Studies

Bonuses linked to performance

Improvement in communication

Positive feedback on ease of use

Higher levels of participation

Measurable sales indicators

Reduced sales head count with no loss of

productivity

Agenda

1. Where does performance management break down?

2. Performance management unpacked

3. Proactive performance management

4. Case Studies

5.5. Questions and closeQuestions and close

Cornerstone Connections

• Cornerstone Connections was born out of a desire to enable organisations to achieve their goals by unlocking the motivation & performance of their employees.

• The focus of Cornerstone since 2006 has been on supporting small & mid sized organisations in the greater Cape Town area

• Cornerstone Connections is the umbrella under which Marion Stone offers performance consulting, organisational development and facilitated workshops

Client History

• Vital Health Foods – Food Manufacturing• Elex Khanyisa – Electrical testing• Mazars – Accountants• Netcare – Healthcare• Pesto Princess – Food Manufacturing• Bergstan – Consulting Engineers

SABPP

What next?

• Leave me your business card and I will send you the slides & a detailed report entitled ‘Six steps to effective performance management’

• Take my business card• Visit my website for more information

www.cornerstoneconnections.co.za• Sign up for an informative, free monthly

newsletter on my homepage or by leaving me your card.

Agenda

1. Where does performance management break down?

2. Performance management unpacked

3. Proactive performance management

4. Case Studies

5.5. Questions and closeQuestions and close