Performance Management Performance Management System System

Implementation & Lessons Implementation & Lessons LearnedLearned

Amanda OldfieldAmanda Oldfield

AVP, HR Operations & Project ManagerAVP, HR Operations & Project Manager

First Niagara Financial GroupFirst Niagara Financial Group

The WHY, HOW and 2 WHAT’SThe WHY, HOW and 2 WHAT’S

Why implement a performance Why implement a performance management system?management system?

How was it implemented?How was it implemented?

What was the result?What was the result?

What did we learn?What did we learn?

WHY?WHY? Process too time consuming and cumbersome. Process too time consuming and cumbersome.

To position HR for continued organizational To position HR for continued organizational growth.growth.

Company transitioning into a strong performance Company transitioning into a strong performance and results-based cultureand results-based culture

Desire to align performance goals to strategic Desire to align performance goals to strategic initiativesinitiatives

Desire to set new standard core competenciesDesire to set new standard core competencies

Need to assign job specific competenciesNeed to assign job specific competencies

HOW?HOW? Conducted research and benchmarked best practices, using Conducted research and benchmarked best practices, using

surveys (Gartner), online resources (SHRM) and HR contacts.surveys (Gartner), online resources (SHRM) and HR contacts.

Found that electronic, web-based solutions were the most Found that electronic, web-based solutions were the most efficient and cost-effective.efficient and cost-effective.

4 companies were researched4 companies were researched

Two final systems were viewed with input from an employee Two final systems were viewed with input from an employee Advisory Counsel. One system was unanimously selected by Advisory Counsel. One system was unanimously selected by the counsel.the counsel.

Final proposal was put together, reviewed by an internal team Final proposal was put together, reviewed by an internal team and approved for implementation.and approved for implementation.

WHAT WAS THE RESULT?WHAT WAS THE RESULT?

An automated performance appraisal & An automated performance appraisal & notification processnotification process

Reduced appraisal processing time – for the Reduced appraisal processing time – for the generalist and payroll generalist and payroll

Ability for employees to complete a self-Ability for employees to complete a self-appraisalappraisal

Core competencies assigned to all employeesCore competencies assigned to all employees Ability to set consistent job competencies and Ability to set consistent job competencies and

performance goals across same/similar positionsperformance goals across same/similar positions

WHAT WENT WRONG?WHAT WENT WRONG?

Inexperienced vendor consultantsInexperienced vendor consultants Unrealistic implementation timelineUnrealistic implementation timeline A system that was not as sophisticated as A system that was not as sophisticated as

we were lead to believewe were lead to believe Modules purchased that were not yet Modules purchased that were not yet

developeddeveloped Vendor that grew too quicklyVendor that grew too quickly Bugs, bugs and more bugsBugs, bugs and more bugs

WHAT DID WE LEARN?WHAT DID WE LEARN?

LESSON #1LESSON #1

Do your research and use your HR Do your research and use your HR contacts to find other customers not on the contacts to find other customers not on the vendor reference list.vendor reference list.

I’m not on our vendors reference list and I I’m not on our vendors reference list and I can give you a better idea of what your can give you a better idea of what your experience may be.experience may be.

LESSON #2LESSON #2

Fully “Test Drive” your short list of systems Fully “Test Drive” your short list of systems before you make a final decision.before you make a final decision.

This ensures the system can do for you This ensures the system can do for you what you want it to do.what you want it to do.

LESSON #3LESSON #3

Start small. Start small.

LESSON #4LESSON #4

Make your vendor give you an Make your vendor give you an experienced consultant. One that has experienced consultant. One that has been with the organization for at least 3 been with the organization for at least 3 years and has worked with company’s like years and has worked with company’s like yours.yours.

These consultants can give you “best These consultants can give you “best practices” and are more familiar with practices” and are more familiar with system capabilities.system capabilities.

LESSON #5LESSON #5

Ensure your management team has FULL Ensure your management team has FULL buy in and understands the time and effort buy in and understands the time and effort needed to invest in a performance-based needed to invest in a performance-based culture.culture.

LESSON #6LESSON #6

Don’t set unrealistic timelines for Don’t set unrealistic timelines for implementation. Listen to your vendor implementation. Listen to your vendor regarding how long it typically takes to regarding how long it typically takes to implement the system.implement the system.

More specialized organizations that require More specialized organizations that require greater configuration will take more time.greater configuration will take more time.

LESSON #7LESSON #7

Do not sign a multi-year contract in the Do not sign a multi-year contract in the beginningbeginning

Ensure that your contract has built in Ensure that your contract has built in SLA’s that the vendor needs to adhere to SLA’s that the vendor needs to adhere to so you have an out if they are not meeting so you have an out if they are not meeting your expectationsyour expectations

LESSON #8LESSON #8

Don’t be afraid to “cut your losses”.Don’t be afraid to “cut your losses”.