agile india 2016: workshop: from traditional performance management to iterative performance flow
TRANSCRIPT
Agile India 2016 | Bangalore | Mar-15-2016
Fabiola Eyholzer | @FabiolaEyholzer | #AgileIndia2016
Workshop: From Traditional Performance Management to Iterative Performance Flow
© 2016 Just Leading Solutions LLC. All Rights Reserved
From Performance Management to Performance Flow
How did your last performance review make you feel?
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From Performance Management to Performance Flow
Performance Management is currently the most scrutinized of all HR processes
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From Performance Management to Performance Flow
Many companies are eliminating employee appraisals –including 10% of Fortune 500 – and more are to follow
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Sources: Performance Mgmt for the 21st C organization, Edie L. Goldberg SHRM Jul-152015 | NeuroLeadership Institute SHRM Jul-2015 | Dread Performance Reviews? This Company's Getting Rid Of Them, Dominique Mosbergen, The Huffington Post, Jul-2015 | Why GE had to kill its annual performance reviews after more than three decades, Max Nisen, Quartz, Aug-2015 | In big move, Accenture will get rid of annual performance reviews and rankings, Lillian Cunningham, The Washington Post, Jul-2015 | Why Employee Performance Reviews Are So Old School, Millie Dent, The Fiscal Times, Jul-2015 | The Push Against Performance Reviews, Vauhini Vara, The New Yorker, Jul-2015
10% of Fortune
500
From Performance Management to Performance Flow
It’s high time for change: Performance Management has its roots in the 1950s post war era
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From Performance Management to Performance Flow
Performance Management is (used to be) considered best practice …
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91% of companies
From Performance Management to Performance Flow
… and the process is fairly standard – regardless of size or industry
Source: Mercer: Global Performance Management Survey Report, Mercer | SHRM: HR Professionals’’ Perceptions about PM effectiveness
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Performance Rating 89%
5 Point Scale 57%
30%16%
95% 93%
Formal Goal Setting
Year-End Review
Mid-Year Review Pay for Performance 89%
Forced Ranking
From Performance Management to Performance Flow
We invest billions into this system
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Sources: Harvard Business Review April 2015: Reinventing Performance Management by Marcus Buckingham & Ashley Goodall | The Washington Post Jul-21-2015: In big move, Accenture will get rid of annual performance reviews and rankings by Lillian Cunningham
Deloitte was spending close to
2 million hours a year on evaluations.
A company of 10,000 employees spends about
$35 million per year on annual reviews.
From Performance Management to Performance Flow
But how satisfied are we with the investment?
SHRM Survey: HR Professionals’’ Perceptions about PM effectiveness (Oct-21-2014) | Office Vibe "13 Disappointing Performance Appraisals Facts You Really Need To Know", Sep-2014 | Corporate Executive Board 2014
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95%dissatisfiedmanagers
58%say doesn’t drive
engagement
2%of HR attests
grade A
30%say it decreases
performance
59%employees say waste of time
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From Performance Management to Performance Flow
We invest billions into a system that is clearly underperforming
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From Performance Management to Performance Flow
With such low ROI levels, why do so many companies stick with it? Why the reluctance to change?
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From Performance Management to Performance Flow
The tides are shifting and agile teams | organizations are at the forefront
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From Performance Management to Performance Flow
Agile teams take it one step further and really push the reset button
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Source: Just Leading Solutions LLC, Author Series
From Performance Management to Performance Flow
Agile teams bring a new mindset to Performance Management
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Source: Professor Nick Holley, Henley Business School, HR Tech World Oct-2015
process conversation
historical forward looking
negative positive
individual collective
rating performance improving performance
measuring the past focusing on the future
addressing weaknesses building on strengths
From Performance Management to Performance Flow
What are some typical challenges to solve
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How do you estimate individual
contribution in teams? How do you ensure
feedback without employee appraisals?
How do you pay for performance without
ratings?
How do you deal with low
and under performer?
What are the new yardsticks for pay and
promotion?How do you
remunerate fairly and individually without
appraisals?
From Performance Management to Performance Flow
Let us tap into all the ideas, experiences, and knowledge in the room
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From Performance Management to Performance Flow
And that is how we will do it
• Market Place of Ideas
• Present challenges
• Twitter votes
• Decide on sessions
• 10 minutes
• 2-3 Breakout Sessions
• Interactive discussion
• Moderated by challenger
• 15-20 minutes
• Solution Exchange
• Present key ideas/findings
• 15 minutes
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Market Place of Ideas
Break Out Session
Solution Exchange
Thank you!
Just Leading Solutions
275 Madison Avenue14th Floor
New York, NY 10016
Fabiola EyholzerCEO
[email protected]+1 908 340 8091
@FabiolaEyholzer
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