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Saba - Bersin by Deloitte - Performance Management in the 21st Century

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Saba - Bersin by Deloitte - Performance Management in the 21st Century

  1. 1. Managing Performance in the 21st Century Katherine Jones, Ph.D. Vice President, HCM Technology Bersin by Deloitte Deloitte Consulting LLP August 20, 2015
  2. 2. Copyright © 2015 Deloitte Development LLC. All rights reserved.1 Managing Performance in the 21st Century Reinventing Performance Management According to one organization surveyed, 2 million hours a year are spent on performance ratings Source: “Reinventing Performance Management,” HBR.org / Marcus Buckingham and Ashley Goodall, April 2015, https://hbr.org/2015/04/reinventing-performance-management. 58% of surveyed execs report PM drives neither engagement nor higher performance Questioning Conventional Wisdom: • Cascading Objectives • Once a year rankings and reviews • Backward-looking assessments • 360⁰ feedback tools
  3. 3. Copyright © 2015 Deloitte Development LLC. All rights reserved.2 Managing Performance in the 21st Century • How Performance Management is Changing • What Users Tell Us • Today’s Technology Choices Agenda
  4. 4. The purpose of Performance Management should be to support and improve an employee’s performance – not just assess it
  5. 5. Copyright © 2015 Deloitte Development LLC. All rights reserved.4 Managing Performance in the 21st Century The Evolution of Performance Management Evolving From Annual Event Burdensome, Fixed Centralized, Deferred Appraisal Focused Remediation Evolving To Ongoing Business Process Flexible, Agile, Simple Local, Real-Time Development-Focused Continuous Improvement Source: Bersin by Deloitte research, 2014.
  6. 6. Copyright © 2015 Deloitte Development LLC. All rights reserved.5 Managing Performance in the 21st Century Performance Management Framework An at-a-glance view of how PM fits together Multi-level Structure Key Messages Performance Appraisal Ongoing Performance Activities Performance Management Outcomes Audience Performance Management (PM) Strategy Technology&Infrastructure Organization&Governance Goal-Setting & Revising Managing & Coaching Development Planning Rewarding & Recognizing Source: “The Performance Management Framework,” Stacia Sherman Garr / Bersin & Associates, 2011.
  7. 7. Copyright © 2014 Deloitte Development LLC. All rights reserved.6 Abolishing Performance Scores: A Practical Guide Performance Appraisal Ongoing Performance Activities Performance Management Outcomes Audience Performance Management (PM) Strategy Technology&Infrastructure Organization&Governance Goal-Setting & Revising Managing & Coaching Development Planning Rewarding & Recognizing HOW WHAT The Six Elements of a PM Strategy Performance Management Strategy 4. Clarify expected leader behaviors 5. Design for PM Sustainability 6. Plan for TM Integration 1. Determine purpose of PM 2. Identify PM philosophy 3. Align PM philosophy to strategy and culture Source: “The Performance Management Framework,” Stacia Sherman Garr / Bersin & Associates, 2011. How to Manage Performance in the 21st Century
  8. 8. Copyright © 2014 Deloitte Development LLC. All rights reserved.7 Abolishing Performance Scores: A Practical Guide 2. Identify PM Philosophy Behavior is Derived from Our Thinking Behaviors Systems: Practices Assumptions / Theories Source: “Getting Away from the Score: Creating Better Ongoing Performance Feedback,” Bersin & Associates, 2012. How to Manage Performance in the 21st Century
  9. 9. Copyright © 2014 Deloitte Development LLC. All rights reserved.8 Abolishing Performance Scores: A Practical Guide Business Strategy TM Strategy PM Purpose & Philosophy 3. PM Alignment to Strategy & Culture Organizational Culture Organizational Culture Source: “High-Impact Performance Management: Designing a Strategy for Effectiveness” Stacia Sherman Garr / Bersin & Associates, 2011. How to Manage Performance in the 21st Century
  10. 10. Copyright © 2015 Deloitte Development LLC. All rights reserved.9 Managing Performance in the 21st Century But Are We Very Good at it? 81% of respondents identified connecting performance goals to organizational outcomes = Extremely important 52% of respondents thought they were successful 73% of respondents identified motivating staff to meet or exceed goals = extremely important 42% of respondents thought they were successful in doing so….. Source: Connecting Workforce Analytics to Better Business Results. Harvard Business School Publishing. 2013.
  11. 11. Copyright © 2015 Deloitte Development LLC. All rights reserved.10 Managing Performance in the 21st Century What Users Tell Us: 2015 67% of surveyed buyers of talent technology were planning to purchase performance management software, either for the first time or as a replacement for existing solutions. Why? • Increasing attention to its criticality • Current solutions are aging • Consolidation of multiple systems reigns 75% of those respondents replacing existing software = replacing a standalone app with an integrated suite solution. Investments in Human Capital Management Systems 2014: What Technology Users Have and What They Will Buy in the Year Ahead. Katherine Jones. Bersin by Deloitte. April 2014.
  12. 12. Copyright © 2015 Deloitte Development LLC. All rights reserved.11 Managing Performance in the 21st Century What technology to you use to manage your employees’ performance today?  An application within our ERP program  A module from an integrated talent management suite  A standalone performance management application  Paper and pencil  None of the above Question for the Audience Henry– can we have a poll????
  13. 13. Copyright © 2015 Deloitte Development LLC. All rights reserved.12 Goals: An Overlooked Weapon for Success SVP VP Director Director VP Director Director VP Director Director Underlying Assumption of Traditional Approach Yet, network tends to be much more aligned to the reality of how work is done Hierarchy… …Not Network How to Manage Performance in the 21st Century
  14. 14. Copyright © 2015 Deloitte Development LLC. All rights reserved.13 Managing Performance in the 21st Century Why Coaching? Why Now? Source: Guide to Performance Software 2015. Katherine Jones & Stacia Garr, Bersin by Deloitte. 2015.
  15. 15. Copyright © 2015 Deloitte Development LLC. All rights reserved.14 Performance Management: Top Trends and Leading Practices Surveyed Organizations That Support Performance Coaching Report Better Talent Outcomes 3.31 4.71 5.78 1.00 2.00 3.00 4.00 5.00 6.00 7.00 No or Weak Support Good Support Excellent Support TalentManagementIndex Degree of Cultural Support for Coaching Source: Bersin & Associates 2011 High Impact Performance Management research, n=193 How to Manage Performance in the 21st Century
  16. 16. Copyright © 2015 Deloitte Development LLC. All rights reserved.15 Managing Performance in the 21st Century Coaching Support is Often Limited 21% 38% 52% 55% 24% 21% 17% 10% 55% 41% 31% 34% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100% Provides automated coaching tools Links to just-in-time coaching information Provides workflows to track coaching and mentoring conversations and activities Enables managers to assign a coach or mentor to the employee Yes Partial No Source: Guide to Performance Software 2015. Katherine Jones & Stacia Garr, Bersin by Deloitte. 2015.
  17. 17. Copyright © 2015 Deloitte Development LLC. All rights reserved.16 Managing Performance in the 21st Century Perceived Efficacy of Development Plans Source: Guide to Performance Software 2015. Katherine Jones & Stacia Garr, Bersin by Deloitte. 2015
  18. 18. Copyright © 2015 Deloitte Development LLC. All rights reserved.17 Managing Performance in the 21st Century Employee Recognition: Surveyed Organizations That Recognize Employees Have Lower Voluntary Turnover 10.5% 8.7% 7.2% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Poor (1-2) Fair (3-4) Excellent (5) VoluntaryTurnoverRate Effectiveness of Recognition Program at Improving Engagement 31% reduction in voluntary turnover Source: “High-Impact Performance Management: Making Recognition & Rewards Matter,” Stacia Sherman Garr / Bersin & Associates, 2011.
  19. 19. Copyright © 2015 Deloitte Development LLC. All rights reserved.18 Managing Performance in the 21st Century Socially-Derived Feedback Used to Understand Performance .. Source: Guide to Performance Software 2015. Katherine Jones & Stacia Garr, Bersin by Deloitte. 2015
  20. 20. Copyright © 2015 Deloitte Development LLC. All rights reserved.19 Managing Performance in the 21st Century Socially-Derived Feedback Used to Understand Performance Source: Saba Software. 2014;
  21. 21. Copyright © 2015 Deloitte Development LLC. All rights reserved.20 Managing Performance in the 21st Century What performance-related technologies would you most like to add to your PM processes today?  Analytic dashboards  Socially-derived feedback  Coaching support for managers  Mobile support for feedback to employees  Better alignment for with development planning  Improved support for cross-team performance Question for the Audience
  22. 22. Copyright © 2015 Deloitte Development LLC. All rights reserved.21 Managing Performance in the 21st Century  Performance management apps are the most noted software application area targeted for investment in 2014-15.  Most buyers seek performance management software as part of an integrated talent management suite  Ongoing coaching and feedback is becoming a primary element of performance development in many high-impact organizations; only a subset of software applications are supporting coaching management and tracking today.  Applications supporting performance management should be agile, simple, and responsive to real-time needs, focusing more on development than appraisal, employee strengths instead of remediation, and on data-driven outcomes instead of assumptions. Conclusion Source: Investments in Human Capital Management Systems 2014. Katherine Jones. Bersin by Deloitte. April 2014.
  23. 23. Q&A Dr. Katherine Jones LinkedIn: Dr. Katherine Jones Twitter: @katherine_jones Email: kathjones@deloitte.com For More Information:
  24. 24. About Deloitte As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. Copyright © 2015 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu Limited

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