Re-inventing Performance Management - Centras Securities _Re... · Comparing top-quartile with...
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Christopher Armitage September 2015 Re-inventing Performance Management
Transcript of Re-inventing Performance Management - Centras Securities _Re... · Comparing top-quartile with...
Christopher Armitage September 2015
Re-inventing Performance Management
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Why is Performance Management Important
Comparing top-quartile with bottom-quartile engagement business units resulted in median percentage differences of
10% in customer loyalty/engagement
22% in profitability
48% in safety incidents
Source: Harvard Business Review “the impact of Employee Engagement on Performance”
Factors Most Likely to Bring Success Which Factors are most likely to bring success? Importance top box score (8-10) for all respondents
Source: Gallup “the relationship between engagement at work and organizational outcomes”
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Performance Management Trends
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The Old Performance Management Process
80,000 People (US and UK Headcount)
September January June
KPIs set and cascaded
Recorded as individual objectives / development plans
Mid Year Round Tables & Performance Reviews
Year End Round Tables and Performance Reviews
>400,000 “project” performance reviews throughout the Year
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Or equivalent of $400,000,000
A significant amount of those 2m hours was actually spent by leaders having discussions behind closed doors on the outcome of the process.
The process costs a huge amount of time…
2,000,000 hours…
To “understand” that 50,000 people did “OK” last year
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….and doesn’t actually work anyway
Ratings are not accurate…. No matter how objective the process, the person giving the “Rating” is invariably biased “Ratings reveal more about who is giving the rating than the person being rated” The appraisal process was asking the wrong questions… not focused on assessing strengths
How people evaluate others in organizations – edited by Manuel London
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Principles of new system
Spend more time helping people use their strengths… …. In teams characterized by clarity of purpose and expectations….. ……with a quick and reliable way of collecting differentiated performance data
Recognizing Performance Celebrating
people’s contributions
Fueling Performance
Aligning people
with what they are naturally great at
Understanding Performance
Knowing what teams and
individuals need to be great
Creating more performance and less management by bringing out the best of every person and the best of every team
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How we understand performance (1/2)
Understanding Performance
Knowing what teams and individuals need
to be great
We discovered that we only need to ask the team leader their opinion. “What are your future actions in respect of that person” We asked team leaders what they would do with their team members, not what they think of them
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How we understand performance (2/2)
Measures overall performance and unique value to the organization
Measures ability to work well with others
Identifies problems that might harm the customer or the team
Measures potential
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Seeing performance – Performance Snapshots
Q2. Given what I know of this person’s performance, s/he is the sort of team member I would always staff on my teams
Low High
Low
High
Q1. Based on what I know of this person’s performance, I would award this person the highest possible compensation increase and bonus
Tax Pilot Phase 2 Data
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Seeing performance – Performance Snapshots
PAY PROMOTION
Data distribution gives indication of enough variation across people to fairly allocate pay
When filtered on “this person is ready for promotion today” data supports objectivity in annual executive discussions about promotion
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How we “fuel” performance
The best team leaders conduct regular check-ins with staff Our design requires every team leader to check in with each member of staff at least once per week
Fueling Performance
Aligning people with what they are
naturally great at
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Making the “check-in” systematic and weekly
ONGOING ACTIVITIES
TEAM MEMBER
TEAM LEADER
CHECK-ONS
• What are you working on this week? • What are your priorities? • What help do you need? • The things you should stop doing are… • The things you should start doing are… • The things you should continue doing are…
What is a Check-in? Forward focused conversation on the week’s priorities: • TM brings 4-5 priorities their are focused on for the
week • TL responds with feedback and guidance, setting
expectations • TL helps TM think about how to leverage their strengths
for priorities • TL provide course correction where needed to make
sure TM meets expectations and delivers outcomes
• Since the last Check-in I worked on… • For the next check-in I plan to… • I need your help with… • What does a great performer look like to you? • What do you see me doing well? What has not been
going well? • What is one thing you’ve seen me do that you would
like me to do more of? • What is one thing I do that you would prefer I stop
doing?
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Design Elements
Fueling performance with ongoing activities like frequent strengths-based feedback on work, one-on-one career discussions, and real-time rewards and recognition
Regular Check-In's
Seeing performance through quarterly activities with team evaluations to gauge and improve team dynamics, and when Leadership review and invest in our people
Recognizing performance with annual activities to review reliable data and fuel intelligent compensation and promotion decisions
Pulse Surveys
Performance Snapshots
Talent Review
Compensation
Design Elements Design Elements Design Elements
Ongoing Activities
Quarterly Activities
Annual Activities
Counselor Role
Three components to the new, real-time PM design
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Benefits already measured
We have established a stable baseline level of engagement in the firm.
1 2 3
4 5 6
Engagement is higher than this baseline for the pilot population.
Engagement increases over time for the pilot/ test populations.
Within the pilot/test population, increased Check-In frequency maps to increased engagement.
Significantly, higher engagement maps to higher Performance Snapshot scores.
More Check-Ins are associated with more extreme Performance Snapshot scores at either end of the spectrum.
+ =
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Starting point for companies to redefine their own process
Simplify the process 1
Align philosophy with strategy 2
Separate performance from compensation 3
Build new culture 4
Empower local managers 5
Ditch the curve 6
