David Harding | Performance Management System | Indianapolis

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David Harding | Performance Management System | Indianapolis

  1. 1. Bring Your Performance Management System Into the 21st Century Presented by David Harding
  2. 2. “ Great leaders are never satisfied with current levels of performance. They constantly strive for higher and higher levels of achievement.” - Donna Harrison
  3. 3. <ul><li>“ Hiring, retaining, and developing great people is the </li></ul><ul><li>biggest challenge and single greatest key to the success </li></ul><ul><li>of any business.” - Scott McNealy CEO, Sun Microsystems </li></ul>
  4. 4. <ul><li>“ Great employees naturally search out, join, and stay </li></ul><ul><li>with organizations that give them compelling reasons </li></ul><ul><li>to commit their hearts and souls.” - Jim Harris author of Finding and Keeping Great Employees </li></ul>
  5. 5. <ul><li>“ If at first you don’t succeed, try again. Then quit. </li></ul><ul><li>There is no sense in making a fool of yourself.” - W.C. Fields </li></ul>
  6. 6. <ul><li>“ No executive has ever suffered because his people </li></ul><ul><li>were strong and effective.” - Peter Drucker </li></ul>
  7. 7. <ul><li>“ A strategy without metrics is just a wish. And metrics </li></ul><ul><li>that are not aligned with strategy are a waste of time.” </li></ul><ul><li>- E. Powell </li></ul>
  8. 8. <ul><li>“ The danger for Corporate America is that </li></ul><ul><li>employee disconnect saps productivity.” Business Week </li></ul>
  9. 9. <ul><li>“ Our culture is our competitive advantage.” - Mike Smith CEO, Land’s End </li></ul>
  10. 10. <ul><li>“ Where there is no vision, the people perish.” - Proverbs 29:18 </li></ul>
  11. 11. <ul><li>Strategy Based Performance Management </li></ul><ul><li>Values </li></ul><ul><li>Vision </li></ul><ul><li>Commitments </li></ul><ul><li>Initiatives </li></ul><ul><li>Metrics </li></ul><ul><li>Improve performance </li></ul><ul><li>Clear accountabilities, aligned effort </li></ul>
  12. 12. <ul><li>Values </li></ul><ul><li>Financial security </li></ul><ul><li>Integrity </li></ul><ul><li>Personal growth </li></ul><ul><li>Responsibility </li></ul><ul><li>Leadership </li></ul><ul><li>Communication </li></ul><ul><li>Honesty </li></ul>
  13. 13. <ul><li>Vision </li></ul><ul><li>“ An effective vision provides guidance for the </li></ul><ul><li>organization. True direction for an organization </li></ul><ul><li>is born with a vision.” </li></ul><ul><li>- John Maxwell </li></ul>
  14. 14. <ul><li>Vision: </li></ul><ul><li>A sense of where you are going, a more or less, </li></ul><ul><li>intuitively defined direction. </li></ul>
  15. 15. <ul><li>Commitments </li></ul><ul><li>Guaranteed on-time delivery (or it’s free) </li></ul><ul><li>Estimates within 24 hours </li></ul><ul><li>Color proofs in 24 hours </li></ul><ul><li>Order entry in 2 hours, preflight within 2 hours, </li></ul><ul><li>and jobs planned within 4 hours </li></ul><ul><li>Eliminate duplicate processes </li></ul><ul><li>Provide opportunities for personal growth </li></ul>
  16. 16. <ul><li>Initiatives / Strategies </li></ul><ul><li>Conduct employee survey </li></ul><ul><li>Wage study of local industry </li></ul><ul><li>Leadership training for managers </li></ul><ul><li>Client survey </li></ul><ul><li>Implement stochastic screening </li></ul><ul><li>Improve integrity of press check schedules </li></ul><ul><li>Study duplicity of accounting practices </li></ul>
  17. 17. <ul><li>Metrics </li></ul><ul><li>Financial stability – EBITDA, pretax profit, days to bill, days-sales-outstanding, alteration collections, productivity, efficiency. </li></ul><ul><li>Employee commitment – employee survey, employee turnover </li></ul><ul><li>Quality – spoilage, ticket accuracy, bad plates to press, </li></ul><ul><li>bad proofs to clients, on-time delivery </li></ul><ul><li>Market position – client retention, sales growth, estimate hit ratio, client survey </li></ul>
  18. 18. <ul><li>Metrics </li></ul><ul><li>Graphs are the best way to show performance results </li></ul>
  19. 19. <ul><li>Performance Measures </li></ul><ul><li>How well do your performance measures: </li></ul><ul><li>Translate strategies into a concrete plan? </li></ul><ul><li>Fully reflect what you care about? </li></ul><ul><li>Drive improvements in how work is performed? </li></ul><ul><li>Include internal and external benchmarks? </li></ul>
  20. 20. <ul><li>The Problem </li></ul><ul><li>67% of employees cannot strongly agree with the statement, </li></ul><ul><li>“ I know what is expected of me at work.” </li></ul><ul><li>Up until 20 years ago, most organizations were highly authoritarian. </li></ul><ul><li>#1 reason people leave a job is because they don’t feel appreciated. </li></ul><ul><li>65% of Americans say they do not get any recognition in the workplace. </li></ul>
  21. 21. <ul><li>The Problem </li></ul><ul><li>Ratio should be 5 positives to 1 negative </li></ul><ul><li>Scientists have found that people who work for bad bosses have increased blood pressure and increase the risk of a stroke by 33% </li></ul><ul><li>22 million workers in the United States are actively disengaged </li></ul>
  22. 22. <ul><li>Traditional Performance Reviews </li></ul><ul><li>Fixated with weakness </li></ul><ul><li>Don’t happen often enough, so they are a waste of time </li></ul><ul><li>Not predictable </li></ul><ul><li>Use “average”, “meets expectations”, as the barometer </li></ul><ul><li>Too subjective </li></ul><ul><li>They should contain no surprises </li></ul><ul><li>Most managers tend to rate employees high </li></ul>
  23. 23. <ul><li>Fixated with Weakness </li></ul><ul><li>Report card… </li></ul><ul><li>English – A </li></ul><ul><li>Social Studies – A </li></ul><ul><li>Biology – C </li></ul><ul><li>Algebra – F </li></ul>
  24. 24. <ul><li>Fixated with Weakness </li></ul><ul><li>Commonly agreed upon words for great behavior often have negative connotation </li></ul><ul><li>From the American Psychological Association: There have been 40,000 studies on depression, but only 40 on the subject of joy, happiness, or fulfillment </li></ul>
  25. 25. <ul><li>Inaccurate Performance Review + Pay Increase = Decreased Motivation </li></ul><ul><li>Inaccurate Performance Review + No Pay Increase = Decreased Motivation </li></ul><ul><li>No Performance Review + No Pay Increase = Decreased Motivation </li></ul><ul><li>No Performance Review + Pay Increase = Decreased Motivation </li></ul><ul><li>Accurate Performance Review + Pay Increase = Motivation </li></ul><ul><li>Accurate Performance Review + No Pay Increase = Motivation </li></ul>
  26. 26. <ul><li>2004 Employee Survey </li></ul><ul><li>My supervisor gives me feedback on the work I do, what I do well, and where I need to improve. (46.1%) (68%) </li></ul><ul><li>My supervisor takes an interest in helping me develop. (50.6%) (70.3%) </li></ul><ul><li>I believe I get the training I need to do a good job. (58%) (62.4%) </li></ul><ul><li>I believe that this company does a good job of hiring people. (45.5%) (48%) </li></ul>
  27. 27. <ul><li>Managers </li></ul><ul><li>The immediate manager is more important than any employee-focused culture </li></ul><ul><li>Make managers accountable </li></ul><ul><li>Spend more time with the best people </li></ul><ul><li>Define the right outcomes and let each person figure out how to get there </li></ul><ul><li>Help managers get organized </li></ul>
  28. 28. <ul><li>The Performance Review </li></ul>
  29. 29. <ul><li>The Performance Review </li></ul><ul><li>The annual review </li></ul><ul><li>Quarterly review </li></ul><ul><li>Mini-monthly interview </li></ul><ul><li>360-degree review </li></ul><ul><li>Peer review </li></ul>
  30. 30. <ul><li>The Performance Review </li></ul><ul><li>Career discovery </li></ul><ul><li>Performance scorecards </li></ul><ul><li>Job turnover </li></ul><ul><li>Occupational half-life </li></ul><ul><li>Link performance to raises or bonuses </li></ul>
  31. 31. <ul><li>Performance Appraisal Comments </li></ul><ul><li>“ When she opens her mouth, it is only to change feet.” </li></ul><ul><li>“ Do not breed from this man.” </li></ul><ul><li>“ He sets low personal standards and then constantly fails to achieve them.” </li></ul><ul><li>“ This person is depriving a village somewhere of an idiot.” </li></ul><ul><li>“ It takes him 1 ½ hours to watch 60 Minutes .” </li></ul>
  32. 32. <ul><li>Performance Appraisal Comments </li></ul><ul><li>“ The wheel is turning, but the mouse is dead.” </li></ul><ul><li>“ If you stand close to him you can hear the sea.” </li></ul><ul><li>“ Some drink from the fountain of knowledge – he only gargled.” </li></ul><ul><li>“ If you gave him a penny for his thoughts, you would get change.” </li></ul>
  33. 33. <ul><li>Rewards </li></ul><ul><li>Overuse </li></ul><ul><li>Based on effort </li></ul><ul><li>Is the change lasting? </li></ul><ul><li>Do they fix the problem? </li></ul><ul><li>Contests </li></ul><ul><li>Departmental rewards </li></ul><ul><li>What if employees are doing okay? </li></ul>
  34. 34. <ul><li>Hiring </li></ul><ul><li>How good are your recruiting efforts? </li></ul><ul><li>When we promote someone, are we raising the talent level of our managers? </li></ul><ul><li>What kind of people will be our future leaders? </li></ul><ul><li>Are we training our best people? </li></ul>
  35. 35. <ul><li>Hiring </li></ul><ul><li>Have a pre-employment instrument to measure talent </li></ul><ul><li>“ Interview hard, manage easy” </li></ul><ul><li>Interview 365 days a year </li></ul><ul><li>References </li></ul><ul><li>Employee interviews </li></ul>
  36. 36. <ul><li>Suggested Reading </li></ul><ul><li>Punished by Rewards by Alfie Kohn </li></ul><ul><li>Finding and Keeping Great Employees by Jim Harris Ph.D. </li></ul><ul><li>First Break All The Rules by Marcus Buckingham </li></ul><ul><li>Built to Last by James C. Collins & Jerry I. Porras </li></ul>
  37. 37. <ul><li>Suggested Reading </li></ul><ul><li>The Five Dysfunctions of a Team by Patrick Lencioni </li></ul><ul><li>The Five Temptations of a CEO by Patrick Lencioni </li></ul><ul><li>The Four Obsessions of an Extraordinary Executive by Patrick Lencioni </li></ul><ul><li>Death by Meeting by Patrick Lencioni </li></ul><ul><li>The On Purpose Business by Kevin W. McCarthy </li></ul>

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