Performance management isn't dead, but it's certainly changing. How can you adapt your current program to be more employee-focused or build one from the ground-up ... this webinar will tell you how.
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Hinweis der Redaktion
JULIE
As I mentioned, I’m Julie, and I work at Halogen Software. My role is in product marketing and I have a background in HR, so it has been such an absolute treat to work with Jennifer and Janice on this webinar. Combined, they have an incredible amount of experience and I have learned so much from them. And I am really excited to help share their ideas and practical tips on this topic.
We have Jennifer - We have Jennifer – results and extremely client-focused, Jennifer has more than 10 years’ experience within the professional services field helping organizations to select, develop, manager and retain their top talent. In particular, Jennifer has been with Halogen for close to three years. Here, she’s worked with over 100 unique clients from a variety of industries, to generated and execute a launch plan, ensuring the success of implementing Halogen’s suite of products. She specializes in areas related to employee engagement, talent recruitment, management and development, and workforce planning. Jennifer has a Bachelors in Business and Psychology, and an Education degree
And we also have Janice here today too -
Janice has been with Halogen for almost 12 years now and in that time, she’s held a multitude of customer-facing roles as well as leadership roles.
One thing has always stayed the same though – Janice is always laser-focused on what customers need for success and she’s passion about how HR can have a positive impact on the business.
Now that I’ve introduced our speakers, it’s time to introduce today’s topic.
JULIE
Performance Management. And more specifically, how to build a performance management program that people won’t hate.
The inspiration for this webinar came from the ebook you see on the screen now. You can also download it right from your screen by clicking on “Handouts.” The feedback that we’ve had on this guidebook has been so positive that I thought we should take some time to share some of the key elements in person.
Now, we only have 45 minutes to speak with you in a webinar and we really could, with no exaggeration, spend at least 4 days on this topic, so bare with us if you find that we haven’t gone as deep as you’d like in any particular area. You’ll find that the ebook will be able to continue on where we leave off.
JULIE
JULIE
So how is it changing? Or why?
We have …
And collaboration is failing … and when you’re not collaboaring you’re not working effectively. And this is leading to …
https://www.mercer.com/newsroom/one-in-three-employees-claim-to-have-a-job-rather-than-a-career-new-mercer-survey-finds.html
employee dissatiscation.
And this combination of trends and change has resulted in a disenchanted workforce. The data keeps telling us that employee satisfaction is in the dumps.
32% of employees claim to have a job rather than a career … they just can’t see a future with their current employer.
28% of employees have decided to look for a new job after completing an annual review with their manager
64% of employees would like more focus on development … they want to grow, they want feedback … but they aren’t getting it or aren’t getting it in a way that is meaningful or helpful to them.
When it comes right down to it, people just want more from work.
They want to feel valued, accepted, fulfilled and connected to not just their work – but their colleagues.
This is trigging a change. Great organizations are choosing to evolve. And we’ve seen the media headlines bashing annual reviews … but is it really the annual review that’s the root of all evil? We don’t think so. In fact, annual reviews can serve a valuable role in boosting an organization’s performance. But here’s the issue – an annual review just isn’t enough.
http://www.forbes.com/sites/lauragarnett/2017/01/09/the-surprising-reasons-why-intuit-cigna-and-the-gap-killed-traditional-performance-reviews/#1aaa4e1e1ad8
I think Rob Ollander-Krane summarized it perfectly when he explained it this way: “If a GPS waited until you got to the destination to tell you that you took the wrong turn, you would never get where you wanted to go.”
And in this sense, it’s just like waiting for the end of the year to find out how you’ve already performed is not going to get you where you want to go.
People want a performance management program that’s a “a part of” day-to-day work
Performance that’s adaptive – not prescriptive
Performance that’s development-focused – no punitive or backwards-looking.
And performance conversations that are regular and ongoing – not once a year.
JULIE
Now, let’s get into some nitty gritty. What is happening at your organization? If people hate your current performance management program, why do you think that is?
The ratings make people feel bad
They take a long time to complete and people are already busy
Managers are uncomfortable addressing performance issues
People don’t see the point
More than one of the above
Other: ______________________________
JULIE passes over to JANICE
No matter what your response was to our poll … whether it has to do with ratings or whether it’s an even bigger issue – that people don’t see the point at all, if you are going to respond to people’s feedback and needs, it’s going to require a change. And even change that people ACTUALLY WANT and have specifically ASKED for can be hard. Which brings me right to Janice and why we believe there is a number one thing you’re going to need to do.
Janice?
JANICE
Thank you Julie. As you shared in your opening slides, people want to move beyond a single annual review. They want more. And that requires a more robust performance management program, or framework. Which is a change.
And for any organization to decide to undertake a change, there has to have been something that pushed you over the tipping point … a trigger. You’ll want to know this. And be really clear on it because it is going to help you build support. Some people call this support, some people call this buy-in, some people call it change management. Whatever you want to call it is fine – just be sure not to skip it! It’s critical for the success of your program.
When I work with our customers here at Halogen, I always share these 4 steps. And I’m happy to share them here today with you.
Additional notes
[4/20/2017 3:56 PM] Jennifer Haineault:
Define Business:
1. Issue
2. Problem
3. Outcome = equates to money
4. Solution
*most difficult to discover in an opportunity is to define the business issue. Often are growth, leadership change and transformation initiative.
NOW – leadership teams OWN talent. HR drives the support. Talent management is a business function that actually drives the business.
JANICE
Why might they object to a change in your performance program?
What is at the root of this objection?
How can you respond? (can you lessen a negative impact? Can you increase the positive benefits? Or even just showcase a benefit that perhaps they hadn’t considered before
A champion does not equal a leader
Do you have a champion per group
How do you need them to help
How do you need to support them so they can help you
Now it’s time to communicate your goals and the benefits of performance management to all levels in the organization. Start with your senior leadership team to get sponsorship at the highest level. Once they’ve approved your initiative, communicate your intentions and the benefits of performance management systematically throughout your organization. Though you’ll need to communicate the benefits again when you’re rolling out your new process, sharing them now will help set the stage for a successful implementation. This will help engage everyone in the change from the beginning. It also opens the door for input and ideas. Remember that for all communications, you’ll want to makes sure that you address each groups specific concerns and priorities. The CEO, for example, will have different concerns than an HR business partner or employee.
[Janice hands it back over to Julie]
Gwenth Paltrow took some heat when she referred to her divorce as a conscious uncoupling. But I think she made a clear point – some couples split in an unplanned and reactive way. Same goes for communications. You need to plan … to be systematic … to be consciously communicating.
Consider:
What key messages do you need to prepare?
What is the best way to get these messages out?
Will you need help?
JANICE hands back to JULIE - 10:36
[Janice hands it back over to Julie]
Thank you, Janice! These four steps – identify your audience groups, then potential barriers as well as your champions, and then build out a communications plan – are going to be key to any project’s success.
Plus, if anyone wants a little extra help, we have a free resource on our website.
JULIE
Next, we’re Jennifer is going to share with us how to start designing a performance management program. And not just any program, but a program people won’t hate!
Before we do though, I’d like to learn more about our audience and their current performance management process.
JULIE hands it over to JENNIFER - 10:40
When we’re talking about designing a performance management framework, we’re talking about all of the activities that you will need to conduct to help realize your overall business outcomes first identified at the onset. At a high-level, here are the steps you need to consider when designing this framework, before executing it.
First – you need to have the right people involved.
Second – you need to understand what you’re currently doing that’s working and where you need to improve with respect to performance. As part of this, you need to identify what key indicators you will use (or already use) to measure performance. As well, you need to ensure your plan or framework supports the initial organizational goals and strategic outcomes.
Third - you need to consider timing, your industry and culture. Then you’ll want to match this with activities that are in accordance with what you’re trying to achieve in regards to performance (i.e. #2 – as part of the what)
Fourth – you need to execute it
Let’s take a moment to walk through each of these.
- Your change plan notes key stakeholders
2. Program elements
Performance measures
Types of reviews
Steps in process
Metrics
3. How the cycle will run
- Annual performance cycle: review intervals, feedback, metrics/data assessment
It may seem obvious, but believe me, it’s most often missed… when designing your performance management framework, you need the right people to participate in the process. The key word here is “right”. You can make up a project team but you need to include influencers, decision makers, project administrators and maybe more because in addition to how you manage change, your success will ultimately depend on who you involve in this program.
While you absolutely want to include decision makers, you need to ensure you capture all stakeholder groups. Sometimes your C-Suite senior managers don’t always have a pulse in what activities need to be included for the design to be successful. So while your CEO understands what needs to happen at a high level for the business, often times they don’t have a clear insight into the drivers within the organization, such as employee engagement. Therefore they need others (ie. Stakeholders) to help design a plan, ensuring their people are performing to the best of their abilities, delivering on the organizational objectives while staying engaged which will ultimately produce even more, and better results. Remember – HR no longer owns talent, they help support the programs, but performance management is a business function that drives the business objectives.
Including some of the roles mentioned above, finally, you need to find your champions. These are the folks who will make you shine like a super-star. Having a champion at every level of your organization will increase support and acceptance of the framework. So, regardless of the size of your framework, we’re talking about change, and as Janice already mentioned, there are stages that people naturally go through when they’re presented with something new – keep this in mind as you design your program and your project team - you don’t want anyone left behind. Your champions will help ensure this doesn’t happen.
For most, it may be as easy as going back to the job description(s). What are the role expectations for the position in comparison to how that individual is performing that job? You can’t speak to development until you have a sense of their performance within their current role. Identifying these gaps will help your managers begin the process of performance management – what is every employee doing well with respect to their job? Where can they improve upon? Where do they want to go in terms of development? How can you help them get there?
Once you know who to involve and what business issues you are trying to solve, you can link that to performance and assess your current situation: how are you developing employees? What does your framework look like now? Do you conduct ongoing activities throughout the year to measure and evaluate your talent? Do you have a formal process for this? What do you measure employees on? How do you evaluate employee engagement?
Most organizations measure employees on competencies and goals – so regardless of what activities you want to incorporate in your framework, you need to ensure you include opportunities that look at these elements more often than once a year.
Simply put, goals describe the what and competencies describe the how. So, ask yourself and then ask your managers – what do you want employees to accomplish specifically – that’s their goal(s). Next, what key indicators or behaviors do they need to possess to accomplish the goal you’ve asked them to complete? In a great framework when we’re speaking about performance management, you shouldn’t have one without the other – measure both aspects.
So for example, while my goal is to deliver 5 webinars this quarter, the behaviors that are going to get me to complete this goal successfully include competencies such as project management (strong planning, organizational and results-focused skills), job knowledge (knowing enough about my topic and industry to present on it), communication (being able to take a slide deck and presentation, speaking, written skills).
Now that we’ve covered what we can measure (goals and competencies), the question is how do we do that? There are three basic inputs into performance: observations – what you see directly, outcomes - measures of achievement and finally, feedback – what you hear from others (not directly observed).
Observations- actions that you can see
Outcomes- quantitative measure of achievement
Feedback- feedback about performances that you do not see yourself but are recognized by others
Now that we know what we need to measure people on, we can start designing the actual framework and the activities within. We want both formal and informal assessments, keeping in mind that in addition to conducting these “check-ins”, we don’t want one person spending hours on this. Your framework should be exciting, empowering and impactful.
Have you ever been to a meeting where the organizer didn’t have a clear agenda and the first part of the meeting was spent on chit-chat and technical difficulties? That experience isn’t fun one – we walk away thinking what a waste of time – we DON’T WANT THIS HERE.
Our goal is to build this program so people won’t hate it – put in the time now to ensure it’s success. Look at a calendar, consider your business and decide what activities are a must for your organization.
Employee lifecycle
Employee Onboard Activities
Engagement & Development Activities
Employee Exit Activities
What activities you include will be your IMPACT.
Now that you’re excited, thinking about how much your people are going to LOVE this program, let’s tackle the processes you could consider including in your framework. I’m going to use a real organizational framework to give you an example and some ideas. Let’s assume this business operated in a calendar period:
At the beginning of the performance management cycle, managers typically set and communicate expectations, expressing them as competencies and goals (which we’ve covered already). Managers and employees may also do up-front development planning to address known learning needs, and ensure the employee can successfully
achieve their prescribed goals and demonstrate desired competencies. Discussions between managers and employees are important at this stage
to ensure that expectations for the coming period are well understood. In an annual performance framework, planning for the upcoming performance period is often done in tandem with evaluating the last performance period. This cycle continues every calendar year.
Many clients opt to use interim reviews because they are so flexible. You can choose the interval that best meets the needs of your organization: mid-year, quarterly or monthly. The important thing is to ensure employees don’t go a full year without receiving a review. If managers hold regular one-on-one meetings with employees, a formal semi-annual review may be sufficient. Some companies do reviews quarterly or monthly. Companies whose work is managed as projects or engagements often conduct project reviews at the conclusion of each one. These interim reviews should be shorter and easier to complete than an annual review. The purpose of any interim review is to review progress and performance to date, adjust goals and development as needed, capture any changes in priority or expectations, and document the expectations and current evaluation of performance.
The annual performance review is typically a formal one – not an impersonal chit-chat. Instead it’s a reflection of the year – how did the individual do overall in terms of their role and how/where can they improve. As much feedback as possible should be gathered here to help with the managers assessment of the employee. More on this coming up. More and more organizations are including engagement surveys and/or stay interviews to their framework.
Finally, once you’ve figured out what type of processes you will use in a given time period, you need to determine how you will measure the success of the type of processes you use. It’s important to know this up-front. Formulate an action plan to address any key findings. Things change, look for ways to optimize or improve this framework year over year.
How will you ENGAGE and EMPOWER? Consider including other voices, make sure you allow employees to grow and develop.
Those you don’t plan, fail!
Scheduling the timing of the various steps and activities in your performance management process is important.
Your first decision is whether to conduct all employee reviews at the same time or conduct them on the anniversary of each employee’s employment start
date (anniversary process).
If you decide to use a focal process, you need to determine the start time. Companies typically align themselves with the calendar year or their fiscal year
when making this decision. Then decide whether you want your annual performance reviews to be completed before the start of the new year or have
managers and employees start working on them at the start of the year. It’s important to align the timing of your performance planning with your organizational
goal setting. Managers and employees will need your organizational goals when they begin drafting employee goals for the coming period to ensure
proper alignment.
Scheduling the timing of the various steps and activities in your performance management process is important.
Your first decision is whether to conduct all employee reviews at the same time or conduct them on the anniversary of each employee’s employment start
date (anniversary process).
If you decide to use a focal process, you need to determine the start time. Companies typically align themselves with the calendar year or their fiscal year
when making this decision. Then decide whether you want your annual performance reviews to be completed before the start of the new year or have
managers and employees start working on them at the start of the year. It’s important to align the timing of your performance planning with your organizational
goal setting. Managers and employees will need your organizational goals when they begin drafting employee goals for the coming period to ensure
proper alignment.
You’ll want to map it out. A big-picture visual will not only help you understand the process, but the rest of the organization too.
Before we move on, I want to note, as you can see here in this example, that while there are a number of important scheduled
events throughout the year to review and discuss performance, there are also weekly 1:1 meetings between managers and employees.
Also, don’t forget about those informal opportunities to provide employees with ongoing coaching, feedback and recognition that contribute
to high employee engagement and performance.As you define your schedule, consider the amount of time each step will take managers, employees,
executives and HR to complete. Factor that into your planning.
There are benefits and drawbacks to every approach. And naturally we’re a bit bias here at Halogen, but you’ll want to
carefully consider things like:
• your organization’s resources,
• the time each group can devote to performance
management activities, and
• your need to integrate employee performance data
with other talent management and/or business
processes.
And of course some training as well.
Training isn’t just product or process. It’s how to manage performance.
Many leaders are promoted from an individual contributor role and may not actually know how to manage performance.
JENNIFER hands it over to JANICE
I’m ready to train my people Janice – am I done????
Janice – unfortunately not quite….. Many organizations do actually stop at this point. But I want you to think about all the time and effort that you’ve put into designing your program.
A major component of any change management plan is continual and ongoing communications. I spoke about this earlier.
You really can’t over-estimate how much communications is required for a change that will impact every person in an organization – such as a performance management process. With your project team, you’ll want to build a solid communications plan that addresses the who, what, what, why, and when of your process. Make use of all the employee communications channels you have available to you. It takes time to affect the cultural and behavioural changes necessary to fully adopt a new process.
So, you’re done … just lather, rinse, repeat – right? WRONG.
JULIE
JULIE
While Jennifer and Janice were talking, so many great questions have come in. We have some time to address this, but just before we do, I want to ask our listeners on last poll question.
We are happy to have spent time sharing with you how to design and roll out a program that people will love. But perhaps you’d like some more help. We offer expert consulting services to help organizations get programs up and running and we also have offer a complete suite of software that helps make strategies come to life. Would you like to learn more:
A simple Yes or No.
Janice:
Who should I involve in building the change management plan?
Include a mix of levels, PM awareness, supporters and believe it or not, detractors. If they will detract, they’ll do it anyway. By getting them involved and having a voice in the planning, they naturally have a stake in making this a success. Plus, they will be able to point out the possible objections early for you so that you can plan a response.
What do I do if I don’t have senior leadership buy in?
This doesn’t have to mean you give up. Similar to using non-leader champions to create a groundswell, you can do this same here. Work with an individual group/team/manager who you feel would benefit from the program you are envisioning. Use them as a ‘beta’ group to test out your theory and potential benefits. Once you have field tested proof, you can leverage that. If you have a manager who has successfully engaged their team or has noticed an improvement in retention rates on her team, she will likely be a supporter and share her results too. This is one way to build a business case, which is what you need to build. Many HR organizations are wary of having their budgets chopped but this can be averted if you have data/numbers etc to support your proposal. Network with your peers too – what’s worked for them? Essentially, you’re not alone and this isn’t a problem that you alone face.
Jennifer: possible ideas
Do I have to include goal setting with a year-end evaluation?
No, you don’t. Separating them has the benefit of allowing for focus to be spent on both activities. In the blended option, if sufficient time isn’t planned, goal setting may be rushed to meet completion deadlines.
What if everyone is being evaluated on the same competencies now?
This can be a time to pause and reflect on what you want successful performance to look like for each role or at least level in your organization. Not every organization is able to flip from a single review document for everyone to one per job easily. If that’s the case, a staggered approach by breaking it down to levels in your organization may be a first step. You could start by considering the expectations for line employees vs expectations of leaders etc.
http://fortune.com/2016/02/01/ibm-employee-performance-reviews/
A big thank you to everyone who joined us today. As a final word of inspiration, I’d like to share this quote from IBM: Never protect your past.
Thank you and I hope you have a wonderful rest of your day!