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Continuous Performance Management: How To Make It Work

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The new world of continuous performance management has arrived. In this presentation we show the 7 practices and give some examples of how to implement this important new management and HR model.

Publicada em: Negócios
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Continuous Performance Management: How To Make It Work

  1. Continuous Performance Management Arrives Are You Ready? Josh Bersin Founder, Bersin by Deloitte Principal, Deloitte Consulting LLP July, 2017
  2. Demographic upheavals: Millennials make up more than half the workforce, and Boomers are working into their 70s and 80s. Digital technology is everywhere: Technology is disrupting business models and radically changing the workplace and how work is done. Rate of change has accelerated: Business must become more agile to keep up with the rapid pace of change. New social contract between companies and workers: Younger workers demand rapid career growth, compelling and flexible workplace, and a sense of purpose at work. Forces Disrupting Organizations Today
  3. © 2017, Bersin by Deloitte, Deloitte Consulting LLP Time Rateofchange Technology change Business productivity Gap in business performance potential • Mobile, sensors, AI, cognitive computing, data • Access to technology by consumers globally • Technology infiltrates home and political life What Appears To Be Happening: Growing Productivity Gap
  4. Productivity is suffering — is technology helping? US productivity last ten years 1 billion smartphones i-Phone launched 100 million Twitter users © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  5. Sources: Deloitte Human Capital Trends 2014 and 2015 The overwhelmed employee The “average” US worker now spends 25% of their day reading or answering emails Fewer than 16% of companies have a program to “simplify work” or help employees deal with stress. More than 80% of all companies rate their business “highly complex” or “complex” for employees. The average mobile phone user checks their device 150 times a day. The “average” US worker works 47 hours and 49% work 50 hours or more per week, with 20% at 60+ hours per week 40% of the US population believes it is impossible to succeed at work and have a balanced family life. © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  6. Why skills matter so much Shift to a service and IP-based economy © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  7. Impact of Robotics and AI on Work Jobs Shift to Skills Which Are Essentially Human Source: Talent for survival Essential skills for humans working in the machine age, Deloitte UK 2016 © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  8. Shared values and culture Transparent goals and projects Free flow of information and feedback People rewarded for their skills and abilities, not position Organizational design A network of teams B A DCF A C D E B G How things were How things “are” How things work E © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  9. Average 3.2 What are these companies doing? Glassdoor ratings of employer recommendations — 200,000+ respondents Engagement is Critical to Success in Digital Organization MIT Study: Among companies in the early stages of digital development, more than 50% of employees say they are planning to leave their organizations in less than three years and over 20% in one year. At digitally maturing companies, only 25% of employees expect to leave in the next three years, and only 4% have plans to leave within a year © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  10. Redefining Performance The traditional concept of “performance appraisal” is rapidly going away.
  11. © 2017, Bersin by Deloitte, Deloitte Consulting LLP How We Got Here
  12. © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  13. What To Do? Create a new model for “continuous performance management” which meets the needs of today’s businesses.
  14. © 2017, Bersin by Deloitte, Deloitte Consulting LLP 4. A New Generation of Performance Management Tools Reinvention of Performance Management Arrives Then: The Networked Hierarchy Now: Network of Teams 1. Annual cascade/align corporate goals 2. Drive top-down execution thru metrics 3. Evaluate high performers thru ratings 4. Force out low performers 5. Annual pay increase based on rating 6. Create annual development plans 7. Identify HIPOs, leadership candidates 1. Continuous bottoms up goals (OKR) 2. Use quarterly or more check-ins 3. Implement feedback in many ways 4. Use data to measure performance 5. Train and support leaders 6. Review compensation regularly 7. Offer career and development assignments on regular basis
  15. Rethinking “Performance Management” in Digital Organization Real Time Feedback System OKR Goal Setting Check-Ins (1-1’s) Feedback Coaching & Development Performance Review (data) Bringing it All Together Periodic Compensation Review Development Plan & Activities Next Assignments Strategy and Execution Day to Day work Performance Coaching & Improvement Quarterly Business Reviews Performance Measurement and Review 1 2 3 4 5 6 7 Coaching and Development System © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  16. © 2017, Bersin by Deloitte, Deloitte Consulting LLP The Typical Continuous Performance Management Approach
  17. Board of Directors / CEO Executive Team / Senior Leaders Business Leaders Team Managers Team Leaders Individual Contributors The Industrial Age Process: Top Down Cascading Goals The Old Model of Setting Goals1 © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  18. From Cascading Goals to Aligned Goals The New Model: Local Goals, but Aligned © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  19. Organizations that revise or review goals quarterly or more are 3.5 X more likely to score in the top quartile of business performance. Frequent Goal Review Works Note: Based on our employee recognition survey, we created a business performance index (BPI1) that averages scores on employee engagement and three business-related outcomes (customer satisfaction, cost structure compared to competitors, and market leadership position). It then ranks organizations on the scale. Organizations that scored in the top 25 percent of the BPI are considered to have “strong” business outcomes. 16% 44% 21% 10% 9% 3% 24% 26% 31% 50% No Goal Revision Once Per Year Twice Per Year Quarterly Monthly Source: “High-Impact Performance Management Using Goals to Focus the 21st-Century Workforce,” Stacia Sherman Garr / Bersin by Deloitte, December 2014. Improvement in Performance Based on Frequency of Goal Review © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  20. Goals Today: Timely, Transparent, Ambitious Goals Frequent Up to Date Transparent, Accountable Ambitious Stretch “Teams with specific and ambitious goals increase achievement from 50% to 80%, and to 90% with feedback.” -Don Sull, MIT © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  21. Synchronizing Goals and Key Results: Check-ins and Reviews Strategy Management Operations © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  22. Making Check-Ins Easy 2 © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  23. Feedback = Performance at Deloitte 1. I am really enthusiastic about the mission of the firm 2. At work, I clearly know what is expected of me 3. In my team, I am surrounded by people who share my values 4. At work, I have the chance to use my strengths every day 5. My teammates have my back 6. I know I will be recognized for excellent work 7. I have great confidence in the firm’s future 8. In my work, I am always challenged to grow Bottom Quartile Middle Quartile Top Quartile 1 2 3 4 5 6 7 8 4.4 3.2 4.2 4.0 3.8 3.6 3.4 Pulse Survey items Questions that Predict High Performance at Deloitte Source: Deloitte pilots FYs14-15. © 2017, Bersin by Deloitte, Deloitte Consulting LLP 3
  24. © 2017, Bersin by Deloitte, Deloitte Consulting LLP Continuous Development Powers The Digital Organization 9% more likely value company loyalty and tenure 13% more likely to value entrepreneurial employees Well-Established retailers are: Internet-Age retailers are: Why? Internet-age retailers seek, hire, reward and develop talent based on a very different set of attributes—more agile behaviors vs. experience-driven behaviors. Well-established retailers value Experience-Driven Behaviors Internet-Age retailers value Agile Behaviors 24% less likely to invest in employee learning 4
  25. Development is key to Millennial engagement Employee Development Now the #1 Job Benefit 6% 6% 8% 14% 19% 22% 0% 5% 10% 15% 20% 25% Greater vacation allowance Retirement funding Free private healthcare Cash bonuses Flexible working hours Training and development Millennials in the workforce For Millennials, “Training and development” is the most coveted job benefit Source: KPCB Percent indicating job benefit in first place © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  26. Explosive Growth In MicroLearning Micro-Learning Macro-Learning I need help now. I want to learn something new. • 2 minutes or less • Topic or problem based • Search by asking a question • Video or text • Indexed and searchable • Content rated for quality and utility • Several hours or days • Definitions, concepts, principles, and practice • Exercises graded by others • People to talk with, learn from • Coaching and support needed Is the content useful and accurate? Is the author authoritative and educational? Videos, articles, code samples, tools Courses, classes, MOOCs, programs © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  27. Learning Key to Digital Success © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  28. Do away with ratings? No – just expand their utility Juniper Model of Evaluation Talent Architecture 5 © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  29. 6 Compensation Review: More Data, Better Decisions © 2017, Bersin by Deloitte, Deloitte Consulting LLP Adobe performance management presentation, delivered on Bersin by Deloitte Webinar, 2016
  30. Desired capabilities and experiences Open positions & opportunities New Projects New Initiatives Individual needs/desires Vision Strategic initiatives Desired business outcomes Values Mission Organization needs Mobility Skills Connections Strengths Development needs Career aspirations Annual goals Succession management Career development Development Plans Next Role Coaching Strategic competencies Workforce planning Performance management Development planning Career and Professional Development Ongoing Development, Next Role, HIPO7 © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  31. Rethinking “Performance Management” in Digital Organization Real Time Feedback System OKR Goal Setting Check-Ins (1-1’s) Feedback Coaching & Development Performance Review (data) Bringing it All Together Periodic Compensation Review Development Plan & Activities Next Assignments Strategy and Execution Day to Day work Performance Coaching & Improvement Quarterly Business Reviews Performance Measurement and Review 1 2 3 4 5 6 7 © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  32. © 2017, Bersin by Deloitte, Deloitte Consulting LLP More To Come: A New Performance Management Landscape Organizational Network Analysis Internal Reputation Networks Automatic and Pulse Feedback tools Plugins to Slack, Workplace, Teams Self- Assessment and Culture Tools Learning Experience Platforms AI-based coaching and nudges Predictive analytics for performance Internal career networks and job systems Scatter plots replacing 9-box grids Redesign of jobs around automation, AI, robotics Cross- functional, multi- disciplinary teams Core of Continuous Performance Management
  33. © 2017, Bersin by Deloitte, Deloitte Consulting LLP What’s Really New? Almost Everything! The New World of Performance Management Check-ins Transparent Goals Peer Feedback Feedback to Manager Engagement Survey Individual Assessment Team Assessment Continuous Micro- Learning Regular Evaluation Integrated into Workflow Mobile App Annual Process Continuous Manager-Centric Team-Centric Hierarchical Multi-Directional Competitive Developmental Subjective Data-Driven Secret Transparent Single Rating Richer Rating Vendor A Vendor C Vendor D Vendor E Vendor G Vendor FVendor B Fundamental Changes Are Enormous
  34. © 2017, Bersin by Deloitte, Deloitte Consulting LLP Continuous Performance Management Is Now Proven
  35. © 2017, Bersin by Deloitte, Deloitte Consulting LLP Performance Management Diagnostic Model Diagnose your current process and thinking against this model. Continuous, Agile Continuous, Revised regularly, Horizontal/vertical Comprehensive, Multi-directional Frequent, Multi-directional Context Driven Traditional Performance Management Transitional Performance Management Leading Performance Management Key
  36. What We Have Learned: Four Big Shifts in Thinking Shift 1: Data • Higher frequency • More sources of feedback • Less bias and higher quality information • Increased transparency for all talent decisions • Can finally get a sound sense of skills, capabilities, and development needs Shift 2: Control • Decrease in central control • Managers shift from “boss” to “coach” • Greater autonomy for managers and individual direct reports • Increased responsibilities for individuals and team • Everyone has an opportunity to contribute to performance conversations Shift 3: Culture • Embed performance activities into the flow of work, it’s “always on” • PM redesign more aligned with corporate culture, not just “end of year review” • Drives and forces culture of feedback and listening • Forces leaders and managers to listen better, and supports more feedback-rich decisions Shift 4: Compensation and Rewards Rewards based on achievements, sound data, flexible in nature, aligned with strategy © 2017, Bersin by Deloitte, Deloitte Consulting LLP
  37. © 2017, Bersin by Deloitte, Deloitte Consulting LLP Two Top Pitfalls of Moving to Continuous Performance Management Failing to upskill managers and direct reports Failing to adequately invest in change management efforts Source: Ongoing Bersin by Deloitte performance management research.
  38. © 2017, Bersin by Deloitte, Deloitte Consulting LLP Continuous Performance Management Is Here

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