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Performance
Management
A Coaching & Development Model
Tamra Facciola
7/2/15
A COACHING &
DEVELOPMENT MODEL OF
PERFORMANCE
MANAGMENT
What we will cover:
 Review of Current Research in Support of
a Coaching & Development Model
 Development & design - What does this
Model look like?
 Implementing the model in your
organization
THE PURPOSE OF A
PERFORMANCE MANAGEMENT
SYSTEM
Why does any organization have a PM system in
place? Some of the most common reasons are to:
1. Identify high performers and drive quality
performance
2. Manage & improve the workplace
3. Reward employees financially (merit)
4. Protect the organization through the PM
documentation process
5. Succession planning
6. Locate and “weed out” sub-par and under-
performing employees
SURPRISE! 21st CENTURY
EMPLOYEES DON’T FIT IN TO OLD
PM SYSTEMS THAT ARE OUT
THERE!
 As of 2013, 86% of organizations recently made significant
changes to their performance management (PM) system or
stated that they were planning to do so*
 Most traditional evaluation-based PM approaches are
predicated on Turn-of-the-Century ideas – outdated for
today’s workforce
 In most organizations, people agree that their PM systems
have not lived up to the promise of enhancing individual or
organizational performance
How does an
organization design,
implement & gain value
from a PM system?
KEY TO SUCCESS – FOCUS ON
QUALITY PERFORMANCE &
ENGAGEMENT
 Current research reveals - it’s not the type of
PM approach that matters most to gain
value*
 Most employers have focused on the wrong
dimension of change
 Organizations have been asking the wrong
questions in contemplating a change in their
PM approach
 Rather than the type of approach, the focus
should be on developing and encouraging
practices and behaviors aligned with driving
quality performance
WHY HAVE A PM SYSTEM?
To Identify High Performers
Drive Quality Performance
Manage & Improve the
Workplace Environment
THE NEXT QUESTION IS . . .
.
“Given that the profile of high-
performing employees looks
different today than it did 5 years
ago, how do we design our PM
system to identify & drive quality
performance in our
organization?”*
ONE SIZE DOES NOT FIT
ALL
 PM is not a one size fits all proposition
 There is no one best approach to
which all organizations MUST
subscribe
 An organization’s PM model must
meet the needs of that particular
organization*
DESIGN CONSIDERATIONS
When designing a PM that supports quality
performance, there are 3 critical areas to
consider:
1. Be able to identify high performers – the
model must incorporate and promote
behaviors aligned with quality
performance (behaviors that promote
engagement)
2. Focus on the Future not the Past
3. Take into account that Managers and their
management skills matter (a lot!)
IDENTIFY HIGH PERFORMERS
I. Currently, 2/3’s of PM systems are
unable to identify or misidentify high
performers (regardless of force
rankings)
 Wrestling with questions like, “Should
our PM system have force ranking or 5-
point scale not?” - misses the more
critical questions:
“What does high/quality performance
look like today?”
“Are we identifying those quality-
performing employees or not?”
QUALITY PERFORMANCE &
ENGAGEMENT - GALLUP’S Q-
12TOP PERFORMERS NEED:
1. Expectations
2. The right tools & resources
3. Opportunity to do what they do best
4. Contemporaneous Praise and Recognition for
doing good work
5. A Supervisor (or someone at work) who cares
6. Encouragement to develop
7. Feeling like opinions count – collaboration
8. Someone has taken the time to talk to the
employee about his or her progress in the last 6
months
9. Opportunity to learn & grow
BE FUTURE-FOCUSED
II. Focusing on the Past instead of the
Future kills the organization’s ability to
drive top performance
• Focusing on the past creates a fear state in
the brain, limiting one’s ability to absorb
information
 Current PM systems are misaligned with how
we now know the brain functions
 Based on current brain research, the real
issue is:
In what mental state does your PM
system put your employees?
MANAGERS MATTER
III. Manager skills matter more than
whatever scoring system is used in a
PM system
Based on current research, activities such
as:
• Setting clear expectations
• Managers providing informal feedback
• Managers working collaboratively with
employees to resolve challenges
have significant and more effective
impacts on driving quality performance
than do traditional PM systems
Managers who create an engaging work
environment promote peak
performance in 3 primary ways:
1. Involvement in the employees’ work
lives
2. Help set goals and priorities
(expectations)
3. Holding employees accountable for
their performance
THE SHIFT – IMPLEMENTING A
PM SYSTEM THAT FULFILLS THE
REASON FOR ITS EXISTENCE
In designing a PM system that adds value to the
organization, the following three questions are
recommended for consideration:
 “What is PM used for in our organization?”
 “What outcomes are critical for the organization
to achieve?”
 How do we get there? - “What is required of
employees to achieve and deliver those
outcomes?*
GUIDING PRINCIPLES OF A
COACHING AND
DEVELOPMENT MODEL*
 PM is a process, not an event. Continual
coaching, feedback and communication
are integral to success
 The PM System is a communication tool
to ensure mutual understanding of work
responsibilities, priorities and
performance expectations
 Collaboration and employee involvement
is encouraged in identifying major duties
and defining expectations
Performance Management
Objectives
 Increase two-way communication
between supervisors and employees
 Clarify mission, goals, responsibilities,
priorities and expectations
 Identify and resolve performance
problems
 Recognize quality performance
 Provide a basis for administrative
decisions such as promotions,
succession and strategic planning…
Adapted from Indiana University HR Website
How do I implement this model?
Setting Expectations
◦ Workplace Expectations
◦ Job Expectations
Evaluation vs. Development
Past Now
 Management Focused
 Supervision
 Labor
 Individual
 Once a year
 Past Oriented
 Measurement focused
 Ratings based
 Administrative decisions
 Employee involvement
 Coaching
 Knowledge Capital
 Team
 Continuous improvement
 Future oriented
 Outcomes
 Conversation based
 Problem Resolution
Performance Management
Instrument
Areas of Assessment to Consider for all
Individual Contributors (all employees):
 Job Knowledge
 Job Performance
 Work Place Professionalism
 Communication

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Performance Management Coaching Model

  • 1. Performance Management A Coaching & Development Model Tamra Facciola 7/2/15
  • 2. A COACHING & DEVELOPMENT MODEL OF PERFORMANCE MANAGMENT What we will cover:  Review of Current Research in Support of a Coaching & Development Model  Development & design - What does this Model look like?  Implementing the model in your organization
  • 3. THE PURPOSE OF A PERFORMANCE MANAGEMENT SYSTEM Why does any organization have a PM system in place? Some of the most common reasons are to: 1. Identify high performers and drive quality performance 2. Manage & improve the workplace 3. Reward employees financially (merit) 4. Protect the organization through the PM documentation process 5. Succession planning 6. Locate and “weed out” sub-par and under- performing employees
  • 4. SURPRISE! 21st CENTURY EMPLOYEES DON’T FIT IN TO OLD PM SYSTEMS THAT ARE OUT THERE!  As of 2013, 86% of organizations recently made significant changes to their performance management (PM) system or stated that they were planning to do so*  Most traditional evaluation-based PM approaches are predicated on Turn-of-the-Century ideas – outdated for today’s workforce  In most organizations, people agree that their PM systems have not lived up to the promise of enhancing individual or organizational performance
  • 5. How does an organization design, implement & gain value from a PM system?
  • 6. KEY TO SUCCESS – FOCUS ON QUALITY PERFORMANCE & ENGAGEMENT  Current research reveals - it’s not the type of PM approach that matters most to gain value*  Most employers have focused on the wrong dimension of change  Organizations have been asking the wrong questions in contemplating a change in their PM approach  Rather than the type of approach, the focus should be on developing and encouraging practices and behaviors aligned with driving quality performance
  • 7. WHY HAVE A PM SYSTEM? To Identify High Performers Drive Quality Performance Manage & Improve the Workplace Environment
  • 8. THE NEXT QUESTION IS . . . . “Given that the profile of high- performing employees looks different today than it did 5 years ago, how do we design our PM system to identify & drive quality performance in our organization?”*
  • 9. ONE SIZE DOES NOT FIT ALL  PM is not a one size fits all proposition  There is no one best approach to which all organizations MUST subscribe  An organization’s PM model must meet the needs of that particular organization*
  • 10. DESIGN CONSIDERATIONS When designing a PM that supports quality performance, there are 3 critical areas to consider: 1. Be able to identify high performers – the model must incorporate and promote behaviors aligned with quality performance (behaviors that promote engagement) 2. Focus on the Future not the Past 3. Take into account that Managers and their management skills matter (a lot!)
  • 11. IDENTIFY HIGH PERFORMERS I. Currently, 2/3’s of PM systems are unable to identify or misidentify high performers (regardless of force rankings)  Wrestling with questions like, “Should our PM system have force ranking or 5- point scale not?” - misses the more critical questions: “What does high/quality performance look like today?” “Are we identifying those quality- performing employees or not?”
  • 12. QUALITY PERFORMANCE & ENGAGEMENT - GALLUP’S Q- 12TOP PERFORMERS NEED: 1. Expectations 2. The right tools & resources 3. Opportunity to do what they do best 4. Contemporaneous Praise and Recognition for doing good work 5. A Supervisor (or someone at work) who cares 6. Encouragement to develop 7. Feeling like opinions count – collaboration 8. Someone has taken the time to talk to the employee about his or her progress in the last 6 months 9. Opportunity to learn & grow
  • 13. BE FUTURE-FOCUSED II. Focusing on the Past instead of the Future kills the organization’s ability to drive top performance • Focusing on the past creates a fear state in the brain, limiting one’s ability to absorb information  Current PM systems are misaligned with how we now know the brain functions  Based on current brain research, the real issue is: In what mental state does your PM system put your employees?
  • 14. MANAGERS MATTER III. Manager skills matter more than whatever scoring system is used in a PM system Based on current research, activities such as: • Setting clear expectations • Managers providing informal feedback • Managers working collaboratively with employees to resolve challenges have significant and more effective impacts on driving quality performance than do traditional PM systems
  • 15. Managers who create an engaging work environment promote peak performance in 3 primary ways: 1. Involvement in the employees’ work lives 2. Help set goals and priorities (expectations) 3. Holding employees accountable for their performance
  • 16. THE SHIFT – IMPLEMENTING A PM SYSTEM THAT FULFILLS THE REASON FOR ITS EXISTENCE In designing a PM system that adds value to the organization, the following three questions are recommended for consideration:  “What is PM used for in our organization?”  “What outcomes are critical for the organization to achieve?”  How do we get there? - “What is required of employees to achieve and deliver those outcomes?*
  • 17. GUIDING PRINCIPLES OF A COACHING AND DEVELOPMENT MODEL*  PM is a process, not an event. Continual coaching, feedback and communication are integral to success  The PM System is a communication tool to ensure mutual understanding of work responsibilities, priorities and performance expectations  Collaboration and employee involvement is encouraged in identifying major duties and defining expectations
  • 18. Performance Management Objectives  Increase two-way communication between supervisors and employees  Clarify mission, goals, responsibilities, priorities and expectations  Identify and resolve performance problems  Recognize quality performance  Provide a basis for administrative decisions such as promotions, succession and strategic planning… Adapted from Indiana University HR Website
  • 19. How do I implement this model? Setting Expectations ◦ Workplace Expectations ◦ Job Expectations
  • 20. Evaluation vs. Development Past Now  Management Focused  Supervision  Labor  Individual  Once a year  Past Oriented  Measurement focused  Ratings based  Administrative decisions  Employee involvement  Coaching  Knowledge Capital  Team  Continuous improvement  Future oriented  Outcomes  Conversation based  Problem Resolution
  • 21. Performance Management Instrument Areas of Assessment to Consider for all Individual Contributors (all employees):  Job Knowledge  Job Performance  Work Place Professionalism  Communication

Notas do Editor

  1. *CEB’s HR Practice worked with more than 2,500 companies and leading organizations Adobe Microsoft Juniper Networks New York Life Motorola Solutions Kelly Services Archer Daniels Midland (From Bersin by Deloitte, Deloitte Consulting Group, 2013). Old systems don’t translate well – FRUSTRATION ABOUNDS! Most organizations have 19th Century models – BUT - 19th Century workers’ performance measured in Output only (labor) 21st Century workers – more than 70% are in service or knowledge related jobs 21st Century performance is not labor (widgets) but driven by skills, attitude, customer empathy, ability to innovate and drive change by working in team environments 21st Century skills are built over time unlike basic labor skills This requires a different approach to assessment / PM
  2. *Based on CEB’s analysis of performance management systems at over 300 companies (with force ranking or not, quantitative scoring or not) no appreciable difference was found in the actual performance of employees based on the type of performance management system used. Kropp (2013). Performance and engagement are not mutually exclusive just the opposite – they are mutually dependent Gallup – Q-12
  3. Reward top performers financially – A. Kohn Protect the organization by a documentation process – there are better ways to do this Succession planning – sub-category of identifying top performers Locate and “weed out” sub-par and under-performers - sub-category of identifying top performers Data show there is real benefit of not linking PM to compensation – see Alphie Kohn Harvard Business Review (financial incentives especially when linked to performance do not tend to motivate employees to greater effort over the long run; actually data reveal tying the two is a disincentive to employees) Kohn, A., Challenging Behaviorist Dogma, Compensation & Benefits Review, March/April 1998. Motivation is classified into two types – intrinsic and extrinsic. Intrinsic motivation comes from within the self; extrinsic motivation is supplied externally, in this case, by the manager. Large amounts of research demonstrates that the highest performing people are intrinsically motivated. Extrinsic motivation is a form of behavior modification (rewards & punishments) to motivate the individual to do something they not otherwise want to do.
  4. *Kropp 2013
  5. *Organizational Feedback - Based on feedback from PM users, the consensus is consistent with the data gathered by researchers looking into traditional PM management systems – users on balance don’t like it. Based on the feedback from users, PM instrument should be: simple, relevant, intuitive, manageable, and user-friendly
  6. Quality performance is connected to engagement – Gallup Q-12 From Gallup Panel Web study 8,287 employed adults 18 and over Sept 4-Oct 9, 2013 Poll was a probability based longitudinal panel of US adults selected randomly (phone – landlines and cell) Weighted to be demographically representative of the US adult population using current population survey figures Margin of sampling error is +/- 1.4 percentage points – translates to 95% confidence level
  7. Kropp 2013 The best employees learn from and drive the performance of those around them – they are called Enterprise Contributors In failing to ask and answer these questions, 2 out 3 times, organizations risk incorrectly identifying high performers Kropp 2013
  8. The Q-12 instrument – survey tool designed to measure employee engagement Many decades of research have gone into development and validation of Gallup’s Q-12 employee engagement instrument. the Meta-Analysis presents 166 research studies that explored the relationship between employee engagement & performance across 125 organizations and 23,910 business or work units. Any instrument must take into account these needs if we want to identify and drive quality performance *Q-12 Meta Analysis
  9. David Rock and the NeuroLeadership Institute have done some really interesting work showing that current approaches are completely misaligned with how the brain operates.  In most current systems, in performance reviews that are “look-back focused”, we spend about 90% of the time talking about what we did or didn’t do well last year.  These conversations put the brain in a fear state that limits our ability as humans to absorb information. The best PM design aligns information from the past to how the employee could be progressing into the future.  This shift puts the brain in a reward state and actually enables it to absorb more information. Kropp 2013
  10. True- Organizations need ways to manage rewards, identify employees who should be promoted, and protect themselves legally when having to manage out low performers.   Many of these outcomes can be accomplished without a quantitative score. However, that translates to a significant investment in and organizational commitment to managerial training, peer-based input, and intensive performance calibration, including Providing meaningful, real time feedback to employees ensuring employees have clear expectations helping employees resolve concerns providing coaching to employees to achieve maximum performance Kropp 2013 & CED Corporate Leadership Council (2004). Driving employee performance and retention through engagement: A quantitative analysis of the effectiveness of employee engagement strategies.
  11. Employees who strongly agree their manager knows what projects and tasks they are working on are 7 times more likely to be engaged than actively disengaged. Employees who strongly disagree with that statement indicating they are largely ignored – are 15 times more likely to be actively disengaged than engaged. This is accomplished by setting up regular meetings with the employee – critical to engagement. *Gallup Business Journal
  12. *Mueller-Hanson, R. & Pulakos, E., (2015). Putting the “Performance” Back in Performance Management, SHRM-SIOP Science of HR White Paper Series A successful shift to leading edge PM – replacing traditional annual ranking with continuous feedback, coaching, and development – begins with a frank determination of whether rigid PM evaluation-based systems are actually advancing the organization’s priorities. Bersin by Deloitte, Deloitte Consulting Group, 2013. What is required – employees know this due to setting of Expectations
  13. *Indiana University, (Oct. 15, 2012). Indiana University Performance Management, http://www.indiana.edu/~uhrs/training/performance_management/intro.htm