taking the stank out of performance management
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Taking the Stank Out of Performance Management. A Very Brief History. Originally developed for a manufacturing environment in 1911 (by Fredrick Taylor ) (Fred). Brief History (cont.). - PowerPoint PPT PresentationTRANSCRIPT
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Taking the Stank Out of Performance Management
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A Very Brief History
Originally developed for a manufacturing environment in 1911 (by Fredrick Taylor)
(Fred)
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Brief History (cont.)
Peter Drucker introduced Management-By-Objectives (MBO) concept in the 1950s (to be used to manage managers)
(Pete)
SMART objectives evolved from Drucker’s concept (Specific, Measurable, Achievable, Realistic and Time-Bound)
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So What’s Changed?
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The speed of everything (and the impact on time)!
• Technology • Less stable, more unpredictable and ultra dynamic business
environment (goals/objectives and jobs are not static) • Doing more with less resources … constantly • Workers’ loyalty and expectations (the newer generation has less
tolerance for b.s.) • Company expectations - need people who can think and do their
jobs with general direction (maps are disintegrating)
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What’s Broken?
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• The methodology/process … top down = dragged down • Cascading objectives – good in theory, bad in reality
• Too much time and energy writing detailed objectives; learning complex software that “automates” the process
• Sometimes the manager is involved; sometimes not • Objectives sit in drawers/files – dusted off at review time and often
are irrelevant in a matter of months (ever hear, “We need to take a look at your objectives … now, where did I put them?”)
• Once or twice a year reviews actually retard daily conversations
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Performance Reviews Are Coming …
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• At 6 months and 12 months – let the moaning, groaning and scrambling begin!
• Executives, managers and employees dread it
• Writing reviews feels like climbing Everest for some
• Rare to have a really meaningful review meeting/dialogue
• More like a break-up; let’s just get this over with
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The Corporate “Reality”
Percent of time complain-ing about, fretting, and
dreading the review99%
Percent of time actually spent writing the review
1%
Time Managers Spend on Performance Reviews
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A Blueprint for a Better Way
• Get support of your executive team if possible (DO THEY WANT A BETTER WAY?)
• If you can’t get this, don’t give up. At least improve what you have!
• You owe this to your organization
• Getting this right/better could be a true competitive advantage and a way to draw “A” talent
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Remove the crud and start with the basics …
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Blueprint (cont.)
• Defining Performance = What you do (Results) + How you do it (Behaviors) • Measuring “What” – assess what got done and the quality, quantity and
timeliness • Measuring “How” – assess the behaviors you want
• Agree, communicate and train re: how you will assess: What + How
• Make it effective: simple, practical, understandable and relevant • Ensure employees know there is some level of ambiguity when assessing – that is
why daily conversations and “coaching in the moment” are so vital
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Even Stars Need “Coaching in the Moment”
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Putting It All Together
• Evaluate: Day-to-day responsibilities (“What”) • Evaluate: Goals/objectives if applicable; determined by job level, adjustable at any
time (“What”)
• Evaluate: The behaviors demonstrated (“How”) • 5-point rating scale – make it intuitive (more about this on slide 17) • Strive for a one page review format • Mostly check box with summary narrative • It’s a report card – it’s not a novel – it’s not a CYA document
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You may not like his “how” but his “what” is off- the-chain and I do want him on my track team!
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A Word About Rating Scales
Make them intuitive! Stop the jibber-jabber!
Decouple them from the academic grading scale – be purposeful about this, if that is what you believe
The 5-Point Rating Scale• Excellent• Very Good• Good (if it is good, solid work, call it Good!)• Needs Improvement• Poor
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That catch far exceeded my expectations. The player went well beyond his objectives. He is highly accountable and a valued
member of the organization … uh, what???
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The Process• Manager receives input from others – employee’s self-rating, customer ratings,
peer ratings, subordinate ratings • Manager reviews and evaluates day-to-day performance • Manager reviews and evaluates performance on goals/objectives (if applicable)
• Manager reviews and evaluates “how” • Manager conducts review with employee – targeted, pinpointed conversation • Manager considers and makes any adjustments/revisions; finalizes review • Submit review to HR oversight/analysis
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Pay for Performance
• Merit increase reflective of the rating
• No forced distribution ever – most demoralizing thing you can do
• Use of standard merit formula across the company – eliminates management discretion, department budgets, gaming the system, promotes fairness and consistency!!!
• No more guide charts or department merit pools
• Will save a ton of time, transparent and fair!
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Is the Pain Worth the Gain?
• Gives everyone a common understanding and way to pinpoint performance discussions
• Promotes daily performance management and conversations vs. waiting for “the
event” • The new process is straightforward, understandable, relevant, and far less time
consuming • Feedback from others is now feasible and streamlined • Saves tremendous amount of time, energy and angst • Still gets at the heart of what you want to do – effectively evaluate performance,
reward best performers with pay and succeed as a business
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And, we can all aspire to be …
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Please feel free to contact me:
Tim MoranTMoran [email protected]
Two requests:1. If you are a slow driver, stay out of the passing lane!2. If you say you are going to follow-up with someone, please
do so.