Making Performance Management Work for You

Presentation ByFrank Hartle General Manager, Hay Group India

http://www.nasscom.org/default.asp

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Agenda

How PM has Evolved

The Worlds Most Admired Companies Survey

PM Design Criteria

The 4 Levers for Success ( Hay White Paper)

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The Evolution of Performance Management

Potential Impact on

the Business

Once A year

AnnualCycle

( P-M-R)

Mixedmodel

Holistic

Culture change process

Complexity of PM process

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Your Performance Management Process

Where are you?

Where do you want to be ?

How well do you rate the process?

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The Vicious Circle

Managers do it badly

Divisive Poor training

Negativeforms

Unreal objectives

Inconsistent ratings

De motivatingWeak links to

rewards

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Agenda

How PM has Evolved

The Worlds Most Admired Companies survey

PM Design Criteria

The 4 Levers for Success ( Hay White Paper)

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Fortune Survey of the Worlds Most Admired companies

Study of most admired companies over the past seven years

Candidates : Fortune 1000 and Global 500 Companies

Companies rated both overall and relative to their industry peers

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Leaders in the Worlds Most Admired Companies

What do they do that is so different ?

The Six Critical Differences

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The Six Critical Differences ..

They create a culture of accountability They are better at working cross-organisationally They are more effective at execution and

simplification They are better at talent management They pay more attention to customers and

growth The critical 3 behaviours Empathy, Teamwork/

Collaboration, Self Management

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Leaders within the most Admired companiesexcel at driving accountability right down through their organisations

They produce real clarity on what strategic accountability looks like and hold their senior people to it

They do a much better job of linking reward to performance; creating strategic accountability by consistently rewarding for it

1. Focus on Accountability (1 of 2)

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The greater focus on accountability means that the leaders in the Worlds Most Admired Companies are much more effective at implementing strategy

1. Focus on Accountability (2 of 2)

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2. Focus on Cross Organisational Working

Leaders in the Worlds Most Admired Companies are more effective at working cross organisationally, place more value on it and get more out of it

Leaders report that one of the biggest changes they need to make for long term success is to get more teamwork and collaboration

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3. Execution and Simplification (1 of 2)

Leaders in the Worlds Most Admired Companies make more use of discretionary pay to drive execution, and are better at it

There is a greater percentage of pay as variable pay in other companies

They use discretionary pay to focus on execution of strategy ( versus operational achievement)

They use discretionary pay consistently, to hold people accountable, and reward for strategic performance

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Leaders in the Worlds Most Admired companies ensure that others understand how their roles add value and have line of sight to their local unit, division and enterprise strategy

3. Execution and Simplification (2 of 2)

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4. Talent Management

Leaders in the Admired Companies see development of others as a core part of their role; leaders in other companies are much more likely to see this as an additional task

The Worlds Most Admired Companies are better at using planned career assignments for development, and are much more likely to use coaching in addition

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5. More Attention to Customers and Growth

Leaders in the Worlds Most Admired Companies take more calculated risks focused on growth because they are not over rewarded on short term measures at the expense of long term objectives

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6. Leaders Have 3 Critical Behaviors

The most significant predictive leadership characteristics for high performing leaders in the Worlds Most Admired Companies are Self Management, Empathy, Teamwork & Collaboration- For creating clarity and accountability- For cross-organisational working - For talent management - For customer focus & long term perspective on growth

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Agenda

How PM has Evolved

The Worlds Most Admired Companies Survey

PM Design Criteria

The 4 Levers for Success ( Hay White Paper)

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Key Criteria for Effective Performance Management Alignment

Strategy Decode

Clarity/ Focus

Accountability (vertically and horizontally)

Support/ Developmental

Assessment

Recognition

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The Hay Approach to Performance Management

Strategy

Organisational priorities

Team /Individual priorities

Planning

Reviewing

Rewarding

Development

How What

Monitoring/Coaching

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Agenda

How PM has Evolved

The Worlds Most Admired Companies Survey

PM Design Criteria

The 4 Levers for Success (Hay White Paper)

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The 4 Levers for Success

Achieve radical clarity around goals

Establish systems and processes to ensure clarity

Align and differentiate rewards

Create a Culture of Dialogue

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Thank You

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For any further details please contact

Hay Group

Signature Towers, Unit # 1203

Tower A, 12th Floor

South City 1

Gurgaon 122001

Phone: + 91 124 5177400

Fax: +91 124 5112188

Website: www.haygroup.com

Contact Details

Making Performance Management Work for You Agenda The Evolution of Performance Management Slide 4The Vicious Circle Slide 6Fortune Survey of the Worlds Most Admired companiesLeaders in the Worlds Most Admired Companies The Six Critical Differences ..Slide 10Slide 112. Focus on Cross Organisational Working 3. Execution and Simplification (1 of 2) 3. Execution and Simplification (2 of 2) 4. Talent Management 5. More Attention to Customers and Growth 6. Leaders Have 3 Critical Behaviors Slide 18Key Criteria for Effective Performance ManagementThe Hay Approach to Performance ManagementSlide 21The 4 Levers for SuccessSlide 23Slide 24