Watch this Webinar and Learn:
- How to transition away from legacy Annual Reviews
- How Ongoing Performance Management works
- Top insights from Adobe’s Check-Ins
- And much, much more!
Video: https://www.atiim.com/webinar-how-to-use-ongoing-performance-management-in-2017/
Atiim site: https://www.atiim.com/
Atiim OKR blog: https://www.atiim.com/blog/
Atiim OKR eBooks and Checklists: https://www.atiim.com/resources/
Coffee Break [30-min] Webinar: How to Use Ongoing Performance Management in 2017
1. ™
Ongoing Performance Management:
Set clear goals, align everyone to what matters,
do lite check-ins and drive great performance with your people.
#1 for Enterprise Goals & Ongoing
Performance Management
2. ™
30-Min Coffee Break Webinar:
How to Use Ongoing Performance
Management in 2017
(Pronounced: A-Team)
The Atiim Best Practices Series
8. ™
Harvard Business Review: https://hbr.org/2016/03/two-thirds-of-managers-are-uncomfortable-communicating-with-employees
People leave their
manager, not the
company!
Managers Are Uncomfortable Communicating With
Employees –Surveyed by HBR & Harris Poll
9. ™
Employees Are Complaining About Managers
Harvard Business Review: https://hbr.org/2015/06/the-top-complaints-from-employees-about-their-leaders
10. ™
“Performance management as practiced by most organizations has
become a rule-based, bureaucratic process, existing as an end in itself
rather than actually shaping performance. Employees hate it. Managers
hate it. Even HR departments hate it.”
Laszlo Bock, SVP of People at Google
Source: Fast Conmpany, and Work Rules, Chapter 7 “Why Everyone Hates Performance Management and What We Decided to Do About It”, Laszlo Bock
12. ™
58% of executives believe that their current
performance management drives neither employee
engagement nor high performance
Source: Deloitte, Performance Management is Broken, Lisa Barry, Stacia Garr, Andy Liakopoulos, 2014
13. ™
Source: CEB, SHRM - Performance Reviews are Dead, SHRM – Is it Time to Put Performance Review on a PIP?
95% of managers are dissatisfied with their companies’
performance review / management systems
90% of HR professionals don’t believe their companies’
performance reviews provide accurate information
66% of performance management processes
misidentify high performers
14. ™
Source: CEB, SHRM - Performance Reviews are Dead, SHRM – Is it Time to Put Performance Review on a PIP?
66% of employees say the performance review
process interferes with their productivity
65% of employees say it isn’t relevant to their jobs
59% of employees feel performance reviews are not
worth the time invested
15. ™
• Only 3% of organizations say their performance management
system delivers exceptional value
Source: 2013 Global Performance Management Survey Report
17. ™
Source: Harvard Business Review, Marcus Buckingham and Ashley Goodall, April 2015
“We tallied the number of hours the organization was
spending on performance management—and found that
completing the forms, holding the meetings, and creating the
ratings consumed close to 2 million hours a year. ”
18. ™
Source: HBR, The Performance Management Revolution, Peter Cappelli and Anna Tavis, October 2016
20. ™
• Marcus Buckingham: “They’re designed as though they’re Russia in the ‘60s”
• The traditional review - “totally out of date.”
• That’s especially the case for workers of a younger generation, who have come to expect
immediate feedback in nearly every other aspect of their lives. “They put something on
Instagram, and in 15 to 20 seconds they’re expecting to know if it’s any good or not,” Buckingham
says. “So it’s crazy for them to come into a workplace that’s like, ‘We don’t care about you, and
twice a year we’re going to tell you what the company wants.’”
• So why then, pray tell, do we still do performance reviews?
Source: Washington Post, The Corporate Kabuki Of Performance Reviews, Jena McGregor, February 2013
21. ™
Source: HBR, The Corporate Kabuki Of Performance Reviews, Jena McGregor, February 2013
In surveys of managers and human resource professionals, leadership
advisory firm CEB found that performance reviews get pretty bad reviews
themselves
They’re wildly inaccurate and ineffective
They’re also surprisingly inadequate: Just 23 percent of HR folks surveyed by
the firm say they’re satisfied with their organizations’ performance
evaluations, down from more than 50 percent a decade ago
85% have either made changes in the past year in hopes of improvement or
plan to do so in the next year.
23. ™
Why must we continue to have these awkward
conversations, in which both sides try to recall what
employees accomplished nearly 12 months ago and to
make excuses for broaching uncomfortable subjects?
Source: Washington Post, The Corporate Kabuki Of Performance Reviews, Jena McGregor, February 2013
24. ™
“The world isn’t really on an
annual cycle anymore for
anything.”
- Susan Peters, Head of HR at GE
Source: http://qz.com/428813/ge-performance-review-strategy-shift/
25. ™
“They purport to be objective.
They’re not objective.”
- Samuel A. Culbert, professor of management and
organizations at UCLA’s Anderson School of Management
Source: SHRM
26. ™
“For many people the whole idea of not
doing them is almost seen as irresponsible.”
- Mary Jenkins, an HR consultant, author of “Abolishing Performance
Appraisals”
27. ™
“I wrote this book because so many
managers and employees told me that
they dread the performance review and
thought it is a waste of time.”
- Dr. Tim Baker
(Source: Amazon)
28. ™
…. a cookie-cutter, fear-based, top-down approach
that emphasizes negatives over positives and stifles
healthy career conversations. It's never been shown
to motivate anyone to do anything but try to avoid it,
but nobody feels like they have any alternative.
- Tamra Chandler has one—and it works. (Source: Amazon)
29. Legacy Performance Process Doesn’t Work…
• Too complex and rigid
• Rife with critical biases
• Frustrating for everyone
• Does not improve performance
• Does not focus on developing your people
• Not frequent enough when everything is changing so fast
30. ™
Total cost of your workforce:
70%
Source: Brookings Institute & SHRM Research
32. ™
Why is this occurring? 3 Big Drivers
1. The existing process is too complex. Most managers believe it is not
worth the time put into it.
2. The process is not developmental enough.
3. A major shift is taking place in management thinking, something that
takes place only every few decades.
33. ™
First, let me talk about what we feel is the hottest
and most disruptive area of HR – the redesign of
performance management.
Source: Deloitte Bersin, Josh Bersin, “Predictions for 2016: A Bold New World of Talent, Learning, Leadership and HR Technology Ahead”
34. ™
More than 60% of all companies are redesigning (or have
redesigned) their performance management process, typically
moving from top-down rating and ranking to a feedback-
centric, developmental, often rating-less model.
Source: Deloitte Bersin., Josh Bersin, “Predictions for 2016: A Bold New World of Talent, Learning, Leadership and HR Technology Ahead
35. ™
Going forward, we believe employee performance
will be transformed to deliver results using
continuous methods and advanced technologies.
Source: Forrester, Transform Employee Performance For Continuous Engagement, Paul D. Hamerman and Claire Schooley, 2016
36. ™
What is Continuous?
• Series of ongoing activities (not just a once a year event) focused on talent
development and improving employee’s performance (not just assessing it)
- Agile goal-setting (OKR goals)
- managing and coaching
- development planning
- rewarding and recognizing
• Deloitte Bersin research demonstrates that respondent organizations with an
ongoing focus have better employee, talent, and business results.
Source: Includes insights from Business2Community, Managing Performance in the 21st Century, Katherine Jones, 2015
37. ™
Source: Bersin Deloitte, Top 10 Keys to Success / Is Your Performance Management Healthy?, Josh Bersin, October 2015
38. ™
GE is moving toward "continuous touchpoints"
between managers and employees
- Valerie Van Den Keybus, GE
Source: CNN Money
40. ™
Donna Morris explained that the performance review is a
“dreaded dental appointment” for manager and employee
alike.
Donna Morris concluded that employees hated them and they
weren’t very useful.
Source: The Push Against Performance Reviews, Vauhini Vara, 2015
41. ™
Adobe calculated that the annual
process required 80,000 hours of time
from its 2,000 managers, the equivalent
of 40 full-time staff.
Source: Fixing Performance Appraisal Is About More than Ditching Annual Reviews, Graham Kenny, 2016
42. ™
Swapping out the annual review in favor of regular
Check-Ins allowed Adobe to have a lightweight process
that served — rather than distracted from — people
doing their best work.
Source: Business Insider, Why Adobe Abolishes Performance Reviews
45. ™
2. Quarterly, Mid-Year and
Annual Meetings
1. Agile Goals
Management (OKRs) &
Ongoing, Real-Time
Check-Ins
3. SEPARATE:
Compensation
Modern Ongoing Performance Development
46. ™
Source: Towers Watson Group, 2015
81% of employers say managers spend too little
time in ongoing conversations with employees
about their performance
62% of employers say that managers spend
insufficient time helping employees set goals
63% of employers say their managers spend 4 hours
or less per employee on performance management
each year
49. ™
8 Key Steps in Making a Transition
1. Agile goals (OKRs) - start with an agile goal-setting process
2. Measurable - use data-driven management based on OKR metrics
3. Managers and employees to do regular, weekly Check-Ins
4. Ongoing, Continuous 2-way Feedback
5. Local - must be manager/employee driven process, and HR supported
6. Goals to improve performance, not exclusive to compensation
7. Strength-based development
8. Recognition – empower with a culture of recognition
Based on the insights from Deloitte, Top 10 Keys to Success - Is Your Performance Management Healthy?, Josh Bersin, October 2015
50. ™
Research has linked agile goals (like OKRs) &
ongoing feedback with higher employee
engagement, increased performance and
better corporate results.
51. ™
95% of employees do not fully
understand the company’s goals or what’s
expected of them to achieve the company
goals
Source: Harvard Business Review, Robert Kaplan and David Norton.
52. ™
Goals combined with
Employee Feedback
Increase Employee
Engagement &
Performance!
Source: Gallup – Employees Want a Lore More from their Managers
53. ™
Continuous feedback is difficult to sustain that if
it’s not happening organically.
Regular conversations between managers and
their employees are now occurring without HR’s
prompting.
Source: HBR, The Performance Management Revolution, Peter Cappelli and Anna Tavis, October 2016
56. ™
• So far, fears that the changes would lead to managers not making tough calls about terminating
people have gone unfounded – “involuntary turnover” as Stockdale calls it, has remained steady.
• In addition, managers’ increased freedom in the performance evaluations has led to double the
average merit increases for the company’s truly exceptional performers.
• When she describes the new system to her HR peers at other companies, she hears a lot of “I
would love to do that, but…” responses.
• No one seems ready to follow suit. “This is one of the sacred cows. The typical performance
review system doesn’t work because you’re demotivating half your population, poking them in
the eye with a sharp stick.”
Source: Washington Post, The Corporate Kabuki Of Performance Reviews, Jena McGregor, February 2013
57. ™
Some of the world’s best companies transitioned to
modern performance management!
Source: Company announcements, Fortune, HBR, Washington Post, WSJ
Purpose is to support and improve an employee’s performance – not just assess it—and represents all of the processes that managers may use to effectively lead, manage, develop, reward and assess employees. Or at least it should.http://www.business2community.com/human-resources/managing-performance-in-the-21st-century-01336437#BtxEUiFP074YdRJU.99
Yet, the historical performance management process has been fraught with difficulties–hence the revolution that can be seen in that process today. Rather than a once-a-year event, many leading-edge companies are now viewing performance management as an ongoing series of activities, with a greater emphasis on coaching and supporting employees rather than an end of year assessment and evaluation.[2]Read more at http://www.business2community.com/human-resources/managing-performance-in-the-21st-century-01336437#BtxEUiFP074YdRJU.99
The original study found was with 3,000 surveyed companies in 100 countries. Of those 50% said it was of no use at all.
according to a CEB survey of 13,000 employees worldwide
ka·bu·ki
noun
a form of traditional Japanese drama with highly stylized song, mime, and dance, now performed only by male actors, using exaggerated gestures and body movements to express emotions, and including historical plays, domestic dramas, and dance pieces.
Must Be Continuous!
Frequent quarterly goal setting has been correlated to higher performing companies, in fact Josh Bersin at Deloitte said 3.5x more likely to be in top quartile of business perfroamance
Must be discussed weekly b/c you can easily drift in the wrong direction
Imagine you had technology to get an improvement of 25%.... Take that 25% and multiply by the average payroll cost 100 employees at a company then that's say 100 x $63k (i.e. $62,780 per year is the government average or $31.39/hour average x 2000 hours = $62,780k in USA ) then that is $1.6M saved EVERY year... ($62.3k * 100 people x 25% savings)
Almost 10% of Fortune 500 already made the transition
Source: SHRM, “If the Annual Performance Review Is on Its Way Out, What Can Replace It?”, Dana Wilkie, 2015 / Cliff Stevenson, a senior research analyst at the Institute for Corporate Productivity
B) More than 1/3 of U.S. companies are ending the traditional process. Source: HBR, The Performance Management Revolution, Peter Cappelli and Anna Tavis, October 2016
All 3 are collapsed into one and are directly linked to each other in HR.
Today, work is more competitive, more dynamic, more nuanced, the workforce is more mobile and more distributed and remote, more so than ever before, and therefore goals, performance development and performance evaluation