View this webinar to make impactful choices when redesigning your performance management process. http://www.humancapitalgrowth.com/take-your-performance-management-from-hate-to-love.html

1. Take your Performance
Management from Hate to Love
Webinar Series
March 9th, 2016

2. CopyrightHumanCapitalGrowth.AllRightsReserved.
2
Presenters
Dr. Shreya Sarkar-Barney
HCG President & Founder
Izabela Widlak, M.S.
Research Consultant

3. CopyrightHumanCapitalGrowth.AllRightsReserved.
3
Talent
Management
Excellence
Leadership
Excellence
US India
We help organizations achieve talent management excellence and leadership
excellence using science, analytics, and empathy.

4. CopyrightHumanCapitalGrowth.AllRightsReserved.
4
What We Do
AUDIT
Pinpointing opportunities
STRATEGY
Leading with intelligence
ANALYTICS
Fine tuning intelligence
EDUCATION
Shaping minds
Talent Management Excellence
Leadership Excellence
ASSESSMENT
Accurate insight on candidates
DEVELOPMENT
Inspiring growth & excellence
TEAM ALIGNMENT
Help leadership teams win
www.humancapitalgrowth.com

5. CopyrightHumanCapitalGrowth.AllRightsReserved.
Agenda
5
• Why the universal hate for PM?
• Broad categories of practice
• What is missing?
• Elements of an uplifting PM system
What are the key considerations in upgrading the
Performance Management process?

6. CopyrightHumanCapitalGrowth.AllRightsReserved.
Global Perspective
Plan to review in
the next 18 months
18%
Currently
evaluating
29%
Reviewed and
updated in the last
18 months
42%
No plans to review
11%
Respondents’ plans for updating performance management system
6

7. CopyrightHumanCapitalGrowth.AllRightsReserved.
Why the Universal Hate?
7
Rating Process Outcomes
Lack of objectivity
Lack of differentiation
Poor ongoing feedback &
communication
91% - mgt. unable to hold
difficult conversations
90% - poor use of time
Performance - reward
linkage missing
70% - see no link between
review and performance
improvement
92% of HR professional see
no link between PM and
business value
Copyright Human Capital Growth. All Rights Reserved.

8. CopyrightHumanCapitalGrowth.AllRightsReserved.
Variations in Practice
8
Ratings Process Outcomes
Traditional
Annual review & ratings Annual cascading of goals
Rating & calibration
Pay, promotion,
rewards administration
Contemporary
No ratings Goals set between
manager and employees
Frequent check-in,
feedback and coaching
Manager free to assign
pay, promotion, and
rewards

9. CopyrightHumanCapitalGrowth.AllRightsReserved.
9
Ratings Process Outcomes
Abolished annual
reviews, ratings, rankings
and forms
Managers set & clarify
performance expectations
Regular check-ins with
feedback and coaching
?
ContemporaryModels
Glassdoor Reviews
“The no review/check-in
process fosters no clear
goals, no career
development”
“Politics drive promotions” “Loyalty/friendship
rewarded over
experience and
performance”

10. CopyrightHumanCapitalGrowth.AllRightsReserved.
ContemporaryModels
10
Ratings Process Outcomes
No forced
distribution/labeling
Assessment against
scenarios
Assignment into
categories
Goals set between
manager and employees
Frequent check-in,
feedback and coaching
Reward those who go
above and beyond
Glassdoor Reviews
“No consistent calibration
across teams”
“Too much politics” “Upper management is
not supportive of career
growth unless you are
favored”

11. 11
Financial Performance

12. 12
FinancialPerformance

13. CopyrightHumanCapitalGrowth.AllRightsReserved.
What’s Missing?
13
Misalignment between
what organizations want and what employees want
what organizations want and what they evoke
through their PM systems

14. CopyrightHumanCapitalGrowth.AllRightsReserved.
Organizations Employees
Ratings Did you do what you were
told?
Tell me how I did, where I stand,
and what I need to do to get
better?
Process How much and how well did
you do it?
I want to do meaningful work
and make a difference.
Outcomes How much of the reward did
your efforts earn?
I want to be recognized for
making a difference.
Transactional Transformational
Misalignment
14

15. CopyrightHumanCapitalGrowth.AllRightsReserved.
Styles of Leading
15
Transactional
Focus on an
exchange
relationship
Transformational
Focus on
emotionally uplifting
communication & engagement
19%6%

16. CopyrightHumanCapitalGrowth.AllRightsReserved.
Three Key Elements to Creating
Uplifting PM Systems
16
Motivation
(equity)
Experience
(respect &
fairness)
Feedback
(growth &
meaning)

17. CopyrightHumanCapitalGrowth.AllRightsReserved.
As much as organizations want to move
away from a rating system, employees
really care about their relative standing
and linkage between effort and
performance.
Equity Drives Motivation
17
1

18. CopyrightHumanCapitalGrowth.AllRightsReserved.
Motivation
18
Comparison made relative to a basket of needs = $, benefits, work life balance
PERFORMANCE  = OUTCOMES2
Self Others Market
[ ]REWARDS &
RECOGNITION
What Motivates?
EFFORT  = PERFORMANCE1

19. CopyrightHumanCapitalGrowth.AllRightsReserved.
Absence of bureaucracy does
not constitute a positive work
experience.
Accuracy and Fairness matter
19
2

20. CopyrightHumanCapitalGrowth.AllRightsReserved.
Experience
20
Processes
 Information accuracy
 Decision making consistency
 Employees voice
 Appeal process
Relationships
 Perspective taking
 Minimizing biases
 Empathetic treatment

21. CopyrightHumanCapitalGrowth.AllRightsReserved.
Frequent Check-ins alone are
insufficient to drive
performance change.
Effective feedback produces
extraordinary outcomes
21
3

22. CopyrightHumanCapitalGrowth.AllRightsReserved.
Feedback
22
Transactional Transformational
Content Task focused
Outcome focused
Evaluative
Mission and meaning focused
Effort and outcome focused
Progressive
Context Guarded
Conflict avoidant
Authenticity
Trust & Transparency
Collaboration Downward communication
Performance goal-oriented
Insightful for both parties
Learning goal-oriented

23. CopyrightHumanCapitalGrowth.AllRightsReserved.
Summary
23
Hate
Ratings
Inaccuracy
+
Process
Politics
+
Outcomes
Futility
Love
Motivation
Rewards
+
Experience
Treatment
+
Feedback
Growth

24. CopyrightHumanCapitalGrowth.AllRightsReserved.
“I’ve talked to nearly 30,000
people on this show, and all
30,000 had one thing in
common: They all wanted
validation.
… every single person you will
ever meet shares that common
desire. They want to know: ‘Do
you see me? Do you hear me?
Does what I say mean anything
to you?’
Oprah Winfrey
May 25, 2011
24

25. CopyrightHumanCapitalGrowth.AllRightsReserved.
25
For a free one hour consultation email us at
info@humancapitalgrowth.com
AUDIT
Pinpointing opportunities
STRATEGY
Leading with intelligence
ANALYTICS
Fine tuning intelligence
EDUCATION
Shaping minds
Talent Management Excellence
Leadership Excellence
ASSESSMENT
Accurate insight on candidates
DEVELOPMENT
Inspiring growth & excellence
TEAM ALIGNMENT
Help leadership teams win

26. THANK YOU!
26
Shreya Sarkar-Barney, Ph.D.
Shreya@humancapitalgrowth.com
Izabela Widlak, M.S.
Izabela_Widlak@humancapitalgrowth.com