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Performance Appraisals
Are incompatible with Agile
Mindset
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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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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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1
2
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velocityAverage=LCLUCL
Target
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)
@lgoncalves1979 www.holidaycheck.de
• 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:
http://GetRidOfPerformanceAppraisals.com/
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:
http://GetRidOfPerformanceAppraisals.com/
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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/
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