The Neuroscience of Transforming Performance and Optimizing Leadership Development
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Transcript of The Neuroscience of Transforming Performance and Optimizing Leadership Development
The Neuroscience of Transforming Performance and Optimizing Leadership
Dr. David Rock, Director, NeuroLeadership Institute
Speakers
Dr. David Rock Director, NeuroLeadership Institute@davidrock101
Greg PryorVP, Leadership & Organizational EffectivenessWorkday
About David Rock
• The NeuroLeadership Institute (NLI) helps large global organizations change fixed unconscious mindsets that may hinder their effectiveness in traditional practices like performance management, diversity, learning and change.
• Dr. David Rock coined the term ‘NeuroLeadership’ bringing together neuroscientists and leadership experts to build a new science to develop better leaders and managers.
A NEW LANGUAGE FOR LEADERSHIP
Research • Education • Solutions
THREE PRACTICES
HOW WE PARTNER
WHERE ARE YOU AT WITH PM?
A. Removed ratings
B. Thinking about it
C. On the fence
D. Not on your watch
KILL YOUR RATINGS
COMPANIES THAT HAVE MOVED OVER TIME
2007 2008 2009 2010 2011 2012 2013 2014 2015
1 2 2 38
13
24
41
55+Companies who have removed PM ratings
Mar Apr May Jun Jul Aug Sep Oct Nov DecJan Feb
53-4
2
IMPACT ON ENGAGEMENT
©2015 Eli Lilly and Company | September 8, 2015 Illustrative
Deliver Rating, Pay Adjustment, Bonus
85%
15%
REINVENTED PERFORMANCE MANAGEMENT
THREE RESEARCH FOUNDATIONS
1. Foster a Growth Mindset for continual improvement
2. Minimize Threat to have candid and honest
conversations
3. Facilitate Insight for people to positively embrace
change
Fixed mindset
• We have skills we just can’t get better at
• Effort doesn’t help
• Feedback is dangerous
• Stretch goals are bad
• Other people’s success de-motivates
Growth mindset
• We can get better at most things
• We can change
• Effort is central
• Feedback is helpful
• Stretch goals are good
• Other people’s success inspires
The two mindsets
Prove yourself Improve yourself
Look good Get better
The SCARF® Model
AwayThreat
TowardReward
Status Certainty Autonomy Relatedness Fairness
Rock (2008)
PERFORMANCE MANAGEMENT CONTINUUM
CoachCoaching and developmentFrequent conversationsShared responsibilityEnterprise contributionMinimal paperworkGrowth mindsetManageable threat
Performance Scores No Performance Scores
Forced Ranking
RatingsBased on
quantitative results(i.e. 1-5)
Structured conversations
Guided conversations
From:JudgeCompetitive assessmentAnnual eventTop downIndividual contributionSignificant paperworkFixed mindsetOverwhelming threat
To:Th
e lin
e of
cour
age
TREND OR FAD?
• Fewer than five firms made major changes in 2010
• 52 - 75 large companies have radically altered PM
• 50 - 70% of firms considering major changes
2015 STUDY NO-RATINGS STUDY
Type of company• 77% Public companies • 23% Privately held companies
Size• 50% under 10K employees • 31% between 10k-100K • 19% over 100K employees
Top 3 Sectors • 38% Technology • 19 % Business Services • 17% Consumer goods
Actual performance
21%
Organizational perspective6%
Idiosyncratic rater biases62%
Random measurement error11%
“Ratings were stronger reflections of raters.”Scullen, Mount, & Goff (2000)
THE DATA WAS NEVER ANY GOOD ANYWAY
DELL STUDY
• 50% were surprised by their rating
• 87% negatively surprised
• Correlates to 47,850 employees
• Many surprised were the better performers. They expected‘best’ and got a‘great’or‘great’and got‘good’
• Link to 23% lower engagement than those not surprised
A VERY CHALLENGING TASK…
1. Review a year’s worth of employee effort, behavior, and accomplishments
2. Appropriately consider other factors that should and should not affect the evaluation
3. Boil this all down to one rating that is objective, fair, complete, accurate, and honest
4. Factor into the rating how this person’s accomplishments compare to his/her peers
5. Rate them using the same process, criteria, and standards another supervisor would
THE JOURNEY
• Six to 12 months
• Philosophy: Business case, 3 objectives, mindset shift, branding
• Dialogue: Define ‘quality conversations’ robustly
• Evaluation: Link to your objectives
WHAT WE RECOMMEND
1. Keep doing pay for performance, but simplify it
2. Empower managers to differentiate
3. Focus even more on goal setting
4. Separate compensation from development conversations
5. Rebrand the process
6. Track conversations happening and the gist of them
7. Increase talent reviews
8. Manage true lowest-level performers differently
WHY RETHINK LEADERSHIP DEVELOPMENT?
Digital learning
disruptions
26
Impact of leadership
development continues to slide (I4CP)
Pressure on skills: leaders have less time
to do more
Little change in leadership
development for a long time
Highly inefficient process
Leadership
Development
Transformation
Minimal spend
for years
WHAT WE ARE SEEING IN THE MARKET
A complete rethink around:
1.How to define leadership
2.How to develop leadership skills
3.How to support behavior change
27
COMMON GOALS
1.Simplify, simplify, simplify
2.Immediate use tools
3.Coherence
4.Evidence-based strategies
28
THEORETICAL FOUNDATIONS
29
BIG PICTURE
30
Phase 1:
Redefine Leadership
• Crystallize central issues
• Simplify for easy recall
• Ensure biological validity
Phase 2:
Build EssentialDisciplines
• Develop disciplines for each manager level
• Deliver truly scalable behavior change
Phase 3:
‘Just In Time’ Tools
• Digital ecosystem
• Two-minute tools
• Give people what they need
Theoretical foundations: The science of learningCoherence • Layering • AGES • Insight • Social
PHASE 1: REDEFINE LEADERSHIP
The objective:
1. Build a simple, memorable statement of leadership expectations.
2. Ensure it is relevant, sticky, with strong coherence.
3. Create the DNA of everything that comes next.
31
PHASE 1: REDEFINE LEADERSHIP
From: To:
Too many leadership concepts One clear set of expectations
Assessment focusDevelopment focus
No common language Common operating system
32
PHASE 1: REDEFINE LEADERSHIP
Which is more important:
Recall of a simple definitionor
Include everything
33
PHASE 2: BUILD ESSENTIAL DISCIPLINES
Which is more important:
Try to teach people everythingor
Focus on the fundamentals
34
PHASE 3: JUST IN TIME TOOLS
The objective:
1. Give managers what they need, when they need it, the way they need it
2. Clear, fast access to ‘how things are done’ at your company
3. Embed ideal skills in a way everyone can access and champion
35
OFF THE SHELF DIGITAL CHANGE SOLUTIONS
36
Summary models provide a common operating system for people skills.
HOW WE PARTNER
Thank You Join the conversation
@neuroleadership @Workday