pm-facts-9202015fin
TRANSCRIPT
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Performance Management: More “FACTS”Less Fluff
Chief Learning and Talent Officer Board Meeting
Sept 21-22, 2015
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Objectives Discuss best and next practices in
Performance Management based on i4cp research and “Evidenced-based HR” which leads us to focus on the FACTS: Future Mindset
Accountability
Communications and Coaching
Transparency
Simplicity Explore tools and solutions Share current challenges, opportunities,
and what to do next
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Evidenced-based HR Transformation “Evidence-based HR practice is a way of
working in which the human resource practitioner critically uses best evidence, expertise, and values to make decisions that matter to the organization and its employees.”
• Wikipedia
It is an approach to decision-making in which the application of logic and critical review of available evidence feed decision-making and action, followed by monitoring and evaluation.
• Uzma Burki, Chief Human Resource Officer, Battelle
I’M AN EBHR
CHAMPION
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Performance Management: A Solution Looking For a Problem? My boss (of long ago): “What is the future of
Performance Management?” Me: “Adaptive goal setting…ongoing
performance feedback…scorecard on every desk… differentiation… rewards for performance… business performance management… technology tools.”
Next Stop: “Amy’s PM Road Show” A Fortune 100 Executive: “Ah, all very well
and good, but just what is the business problem you are trying to solve….That looks like a solution looking for a problem.”
“What is the business problem you are trying to solve?”
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What is the Business Problem You Are Trying to Solve?
PerformanceNeed Talent
Fairness
What do your senior executives say about the business purpose of PM?
What do your employees say about its value to their performance and employee experience?
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What is the Business Problem You Are Trying to Solve? One Example: Need for Talent
“Whether it's the demographics of more Baby Boomers retiring or inadequate pipelines, there's going to be a greater and more compelling argument for smarter investments in talent acceleration. Everything is going to change.”
Kevin Wilde, former Chief Learning Officer of General Mills
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What is the Business Problem You Are Trying to Solve? Microsoft vs. Yahoo (Hint: Its not about rankings)
Microsoft Kills Its Hated Stack Rankings. Does Anyone Do Employee Reviews Right?
Yahoo's Latest HR Disaster: Ranking Workers on a Curve
By Joshua Brustein , Bloomberg Nov. 12, 2013By Joshua Brustein , Bloomberg Nov. 13, 2013
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Everybody Asks About the “Four Horsemen” (Do They Matter for Your Business? Why or Why Not?)
Google Facebook Amazon
Apple ?
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Purpose of a PM Initiative – What’s the Business Problem?
Source: Expedia Case Study, 2013
Can you see a problem? But what was the business problem?
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Expedia: PM Aligned with Their Mission, Values & Need to Compete for Talent
Source: Expedia Case Study, 2013
• S&P 500 Company• Largest global travel company• 14,000 employees, 40 countries• 2400 ees in Washington HQ• 190 travel sites in 90 countries
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Expedia: Creative Branding with PM Processes
Source: Expedia Case Study, 2013
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Define the problem from a
business and stakeholder (customer) perspective
Purpose of your PM Initiative
Who is impacted and
who cares?
What are the options?
What is the cause of the
problem?
Why is this a business problem?
What happens if we don’t
address it?
Clearly re-define the business
problem with the evidence (have a good
story)
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Collecting the Evidence…
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FACTS Vs. FLUFF
FACTS Clearly defining the
business purpose of your PM process – the problem you are trying to solve
Ensuring that it aligns with your organizational culture and values
Supported and modeled by senior executives and other key stakeholders
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FLUFF The type of rating scale
makes no difference Having a rating scale (or
not) doesn't make a difference by itself
Technology alone does not make a difference
Adopting “best practice”
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Future Mindset Accountability Communications and Coaching Transparency Simplicity
A Closer Examination of the FACTS
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HPO’s focus resources on setting goals aligned with business strategy (HR BP support, calibration, audits, training)
HPO’s focus on external (market, customer) goals vs. internal goals
HPO’s review and reset goals often to ensure agility with changing markets
Future Mindset
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Future Mindset: Focus on External Goals
“The Customer and Market” HPOs are nearly 3x more
likely to predominantly focus on customers needs, markets and competitors
They are flexible, reviewed and discussed often, to reflect changing needs of the customer and markets
Goals, behaviors, and performance dialogue are customer centric
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“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.”
Three things needed disruption: Annual review process Rearview mirror reviews vs. focus on
progress moving forward Pitting manager and employee vs.
forward focus on the social and relationship elements of moving the business forward
Future Mindset: Adobe
Source: Business Insider, 2014
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Future Mindset: Adobe
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Future Mindset: Agility Research says HPO's Act Into Change
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HPO’s use data and modeling to set goals They stress consistency of PM process They are inclusive of all levels (i.e., one PM) They differentiate talent, investment and
rewards They hold leaders and managers
accountable for developing others
Accountability
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HPOs are nearly 2x more likely to lead by example with data based decision-making and to provide analytical and modeling tools to support goals
In HPOs, data is used to support goals, drive insights and make better decisions
Accountability: Ensure that Goals are Clear and Measurable
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Accountability: Apply Consistent and Inclusive PM
HPOs drive consistent PM processes through the organization
They focus on mission and values and purpose
LPOs are more than twice as likely to say they have no PM for their senior executives
HPOs demonstrate inclusive leadership behaviors
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Accountability: Need to Differentiate Talent, Investment and Rewards
Nearly half of high-performing organizations indicate that recognizing and rewarding high-performers is the main driver of their pay for performance strategy
Compensation still top reason for PM processes by majority of organizations
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Accountability: Holding Leaders Accountable for Developing Others Does your organization hold leaders accountable for the development and engagement of their direct reports?
“Somewhat”
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Accountability: Five Practices of Exceptional Development Managers (Research)
1. Make every day a development day
2. Tap the psychological side of development
3. Connect people with development partners
4. Teach skills to navigate organization politics
5. Shape the environment to drive development
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Performance Conversations Performance Feedback Power of Social Networking
Communications
“All Business is Social”
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Communications: Performance Conversations “Leadership Is a Conversation”, HBR
Intimacy (knowing your people) Interactivity (promoting dialogue) Inclusion (expanding employees roles) Intentionality (pursuing an agenda).
Use data to engage conversation Key Skill: Less tell, more asking
questions
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Communications: Encourage dialogue by teaching, facilitating and promoting skillful performance conversations HPO’s are 2x more likely to
provide supervisors with training on giving and receiving feedback and goal development (most highly correlated with MPI)
HPO’s also focus on the competencies needed to develop people (coaching
“The Conversation
Is the Relationship”
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Communications: Integrate multiple sources of feedback
“What about 360-degree feedback?”
Feedback alone can change performance – but it is not guaranteed. Structured follow up is needed (i.e., clear goals for improvement, development plans, ongoing conversation, consequences)
HPO’s much more likely to have multiple sources of feedback – coupled with planning
Customers/ Market
ManagersPeers
Other Associates
Sources of feedback
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Communications: Examples of Multi-Sourced Performance Feedback
Performance Enablement10k active users40k pieces of feedback in
first 214 days75% indicate they’ve
changed behavior based on feedback they received.
Behavior-based Feedback iLearn, A multi-sourced
feedback tool. Rewarding those who teach
others and who demonstrate their knowledge on the job.
Employees leverage after they complete a learning program to gain insight on their performance/behaviors
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Communications: Create a feedback and recognition rich work environment“Increase feedback & recognition” Leverage multiple sources
of frequent feedback – especially customer feedback
Identify future focus for work activity (feed forward)
Recognize progress to goals and reinforce critical behaviors
Often!
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Communications: Social Network
“Is the Nine Box Dead?” – Whirlpool research project that found no correlation Top Performers/Potentials with what the social network said of performance
Social networks creating more natural and flexible hierarchies
Need to find the talent mavericks Under fire as it relates to diversity:
“The growing concern over the nine-box is that it allows too much individual interpretation, especially of potential. And these interpretations can be based on cultural familiarity and the biases of managers.”
• Diversity Inc., May 19,2015
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Coaching as a cultural competence Development Planning and Experience
Mapping
Coaching
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Coaching: Integrate Coaching and Development Plans into the PM Process
HPOs are More than 3x more likely to have a coaching aspect to their PM program
Many HPO’s view coaching as an organizational competence, driven by expertise, accountability and measurement
Coaching = forward view
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Coaching Culture
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Coaching: The State of Coaching (Like the State of PM) Isn’t Pretty!
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Coaching: Development Planning and Experience Mapping
Highly Correlated to Market Performance Mapping Tools:
Next Practice
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Transparency
“Transparency is the common thread that correlates with effectiveness in virtually all human capital practices and programs.”
- i4cp Critical Issues Report
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Transparency
How does your organization view transparency?
What factors are driving enhanced transparency (if anything)?
What are the barriers?
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Work to simplify everything Avoid complex competency models Focus on critical few goals and behaviors
Simplicity
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“i4cp research suggests that most PM systems would benefit from less functionality (i.e., bells and whistles) and more simplification of PM processes from a user perspective. This typically includes a clearer focus on goals, enhanced management accountability, more frequent performance feedback and more rigorous talent development practices.”
- i4cp, Performance Management Playbook
Simplicity
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Simplicity
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Simplicity: Sample PM Journey Map
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Simplicity: Focus on the critical few behaviors that need to happen to achieve outcomes
Simplify your approach to behaviors (“less is more”)
Focus on identifying critical behaviors correlated to job outcomes
Reinforce critical behavior “Business is about behavior.”
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Exercise. Identify elements you want more of (FACTS Driven PM) and those you want less of (fluffy PM)
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i4cp Research…Performance Feedback Highlighted in Many i4cp Reports
Nine Keys of Performance Management Performance Management Playbook: Managing Critical
Performance Challenges Purpose-driven Performance Management Six Talent Practices that Boost Engagement and Market
Performance Creating a High Performance Culture Performance Management: Still Waiting for Real Change Creating a Coaching Culture Performance Management Lexicon The Secret Formula for Organizational Agility
49© 2012 Institute for Corporate Productivity, Inc. Member companies may reproduce and distribute this file on an unlimited basis to their employees for internal management purposes only. Nonemployees may not be given copies of or access to i4cp’s reports, online services or conference materials.
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Appendix