Jeremy Spake, Principal Consultant

Emerging Trends: Shift Your Performance Discussions Towards Development for Growth

Today’s SpeakerJeremy Spake, CCP, GRPPrincipal Consultant, Performance and Compensation

Jeremy is responsible for providing thought leadership for SaaS-based talent management by working with clients to achieve business objectives through use of the Cornerstone OnDemand (CSOD) suite of services.

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• Annual Event• Process-driven• Focus on existing leaders• Tenure-based• Emphasis on Appraisal

Emerging TrendsTraditional

• Ongoing• People-centric• Focus on developing leaders• Development on-demand• Emphasis on Development

Emerging

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•How have you changed your performance management process? select all that apply

A. Eliminated use of forced distributionB. Eliminated ratingsC. Replaced annual performance reviews with more frequent check-insD. Replaced annual goal setting with near-term goal settingE. Separated performance discussions from compensation discussionsF. N/A – nothing so far

Polling Question #1

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Recent Changes to Performance Management Approach

Replaced annual employee performance goal setting with near-term goal setting

Replaced annual performance appraisal discussions with frequent and in-the-moment feedback

Eliminated use of rating scale (numerical and/or descriptive)

Eliminated use of forced distribution

Separated performance discussions from merit increase discussion

Not Applicable; We haven't changed anyting recently.

0% 10% 20% 30% 40% 50% 60%

11%

14%

16%

18%

26%

57%

Source: 2016 Brandon Hall Group Performance Management Approach (n=269)

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2017 Priorities

• Engage your partners

• Foster communication

• Demonstrate accountability

• Rewards and recognition

“Goodbye Talent Management, Hello People Management”

Understand Your Employee

7Source: HCI Internal Mobility Research 2014

47%Agree that it is easier for an employee to find a job outside of our organization than

inside it.

89%Agree that hiring is less expensive from within

the organization.

86%Agree that it is

faster from within the organization.

60%Agree that employees promoted from within

perform better.

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•What is the focus of your performance and development program?

A. Develop StrengthsB. Correct WeaknessesC. Not SureD. Other

Polling Question #2

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• Context is critical

•Develop the whole person

• Treat development as a journey

• Service promotes purpose

Performance Management & Development Philosophies

Source: 2016 Brandon Hall Group Performance Management Approach (n=269)

49%OF ORGANIZATIONS SAID THEIR PERFORMANCE MANAGEMENT PHILOSOPHY IS BASED ON DEVELOPING EMPLOYEE STRENGTHS

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• Trend of “check-ins” will drive dev discussions• Employees at the intersection of

career mgmt. and development• Small team structures• Provide leadership opportunities early

in career• Teach managers to manage projects

and people simultaneously and individually• Provide “career coaches” / “mentors”• Hackathons – collaborative

development

People & Process DevelopmentTalent

• Invisible L & D• Digitize• Reduce levels in your job architecture –

reference market trends• Looking at the past and providing guidance

for future (windshield)• Ensure efficient operational processes• Build the talent system• Understand, manage and improve the

employee experience

Organization

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Case Study: YUM!

Source: Brandon Hall Group 2017 Silver Award Report

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Case Study: YUM!

Source: Brandon Hall Group 2017 Silver Award Report

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Development is Imperative

• Develop leaders who can drive real change

• Build a pipeline of ready-now leaders

• Create an engaging culture

• Lead with purpose and sustain superior results

58% 74% 51%

Of employees think college graduates are not adequately prepared for the workforce

Of businesses report persistent shortages of talented mid-level managers

Of businesses report that they still don’t have enough talented executives

More people and skills to develop

Source: McKinsey & Co. Education to Employment 12/2012. Bersin by Deloitte, Developing 21 st Centruy Leaders 11/2011

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Leadership Development Priorities

Becoming more purpose and values driven

Diversifying the leadership pipeline

Driving engagement

Accelerating time to performance

Driving culture change

Filling gaps in your leadership pipeline

Developing leaders to drive strategic change

8%

6%

7%

12%

16%

22%

29%

9%

12%

15%

14%

16%

16%

19%

10%

14%

16%

13%

13%

16%

18%

Rank the most important leadership development priorities in your organization.

Series 1 Series 2 Series 3

66%54%

39%

38%

32%

27%

45%

Source: 2016 Brandon Hall Group Performance Management Approach (n=269)

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•First-level leaders

•Mid-level leaders

•High-potential leaders

Develop Leaders

Source: Korn Ferry, Real Life Work 2016

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•Activities & Projects

•What Next?

•What does success look like?

•Connecting to business goals

•Self-evaluations

Clear Expectations

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Case Study: BAE Systems

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Case Study: BAE Systems

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•How would you describe your internal coaching and mentor program?

A. A defining benefitB. Effective development coaches in placeC. No TrainingD. Not Sure

Polling Question #3

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Manage Like a Coach

Source: 2016 Brandon Hall Group Performance Management Approach (n=269)

Effective devel-opment coaches;

23%

Defining benefits; 45%Don't know; 5%

No training; 27%

Existence of a Coaching Culture

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•Check In

•Manage Obstacles

•Evaluate Strengths & Opportunities

•Manage like a coach

•Look ahead

Continuous Development

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Case Study: Isbank - Turkey

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Case Study: Isbank - Turkey

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•Skills check

•Personal brand

•Networking

•Career Planning

•Exploring Skills & Interests

Develop

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Case Study: T-Mobile

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Case Study: T-Mobile

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•What development programs do you currently have in place for employees in your organization? select all that apply

• A) Stretch assignments• B) Project lead• C) Role expansion• D) Rotation• E) Formal skill development• F) Other

Polling Question #4

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•Pay Decisions Based on:

•Employee’s performance against individual goal plans

•Employee’s performance in comparison to peer group

•Organizational budget

•Market data – both internal and external

Decoupling Compensation and Performance Discussions

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•Collaborate with and engage partners

•Enable collaborative and social learning environments

•Use experiential development methods

• Incorporate metrics and feedback tools

•Communication is critical

• Internal developmental coaching programs

Best Practices

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•Connect development strategy to business strategy

•Embed change throughout the organization

•Make development programs contextual and relevant

•Encourage a sense of purpose and mission

Summary

• Part I: Diagnose, Discern, Develop• January 16

• Part II: Learning Strategies• Feb. 16

• Part III: Development• March 15

Elements of Effective Performance Management

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Performance ManagementLearning Strategies

Diagnose, Discern Develop

Development

Questions?

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Jeremy Spake, CCP, GRPPrincipal Consultant, Cornerstone OnDemandM: 206-755-4194Email: jspake@csod.comLinkedIn: www.linkedin.com/in/jeremyspake

Contact

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