The document outlines a coaching and development model for performance management. It discusses how current performance management systems are outdated and don't fit 21st century employees. The model focuses on identifying high performers by their quality performance and engagement. It emphasizes setting clear expectations, providing feedback, and managers creating an engaging work environment to promote peak performance. The implementation involves continual coaching, clarifying expectations, and having outcome-focused conversations throughout the year rather than annual evaluations.
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predicated on Turn-of-the-Century ideas – outdated for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
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
*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
*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
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.
*Kropp 2013
*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
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
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
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
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
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.
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
*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
*Indiana University, (Oct. 15, 2012). Indiana University Performance Management, http://www.indiana.edu/~uhrs/training/performance_management/intro.htm