The Performance Management Cycle


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Co-delivered with John Zettler to the HRANS Halifax Monthly Professional Dinner April 2010 This presentation focuses on the continuous process of Performance Management

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  • Phase 1: Immobilization, Shock, Anxiety, Denial, Confusion, Resignation, Anger Phase 2: Approach avoidance, Bargaining, Undirected energy, Conflict, Depression, Realization of loss Phase 3: Acceptance, Impatience, Hopeful/ Skeptical, Relief/ Anxiety, Trusting, Enthusiasm During change, “me issues” pre-occupy employees at all levels If I ignore this, will it go away? Will I have a job? Who will I report to? Will my pay and benefits change? What company will I work for? Will I have to switch jobs? What happens to my pension? Will I have to upgrade my skills? These natural reactions create an inward focus - resulting in loss of productivity, and often exiting of key talent Unmanaged “me issues” can prolong the “Letting Go” phase and prevent individuals or an entire organization from moving through the natural change process
  • The Performance Management Cycle

    1. 1. John P Zettler Patrick C Hartling Developing Employee & Organizational Performance   Tuesday, April 13, 2010 HRANS HRM Chapter Dinner
    2. 2. Session Purpose <ul><li>This session is designed to link the two most powerful tools available to a manager or an HR staff-person to improve performance, and coincidentally, employee satisfaction and retention. </li></ul><ul><li>Fair, clear and practical assessment of past performance, with a view to establishing desired future performance is the first tool. The second tool is the development of effective and consistent coaching practices that are linked to and supportive of the appraisal and targets of each employee. </li></ul>
    3. 3. Learning Objectives <ul><li>Identify the key elements of a performance appraisal/development system that will support coaching, </li></ul><ul><li>Identify the key elements of a coaching system and practice that will support and sustain performance improvements, </li></ul><ul><li>Establish how these elements can be combined to create a performance development cycle, </li></ul><ul><li>Consider barriers and obstacles regarding the performance development cycle, </li></ul>
    4. 4. Learning Objectives <ul><li>Establish a performance appraisal/development checklist, </li></ul><ul><li>Identify the resources necessary to create and sustain such a program </li></ul><ul><li>Consider Developing a Performance/ Coaching Culture </li></ul><ul><li>Identify Change Management Strategies that will support your development and introduction, </li></ul><ul><li>Consider how the Employee Survey and Feedback will support your Performance Development Strategy </li></ul>
    5. 5. The Performance Management Challenge <ul><li>New pressures to perform </li></ul><ul><li>Questionable results from Performance Management </li></ul><ul><li>Challenge in both design and execution </li></ul><ul><li>Inadequate manager focus </li></ul><ul><li>Insufficient manager skills </li></ul><ul><li>Narrowly defined ownership </li></ul><ul><li>Disconnect with strategy </li></ul><ul><li>Failure to execute </li></ul>
    6. 6. Jack Welch on Leadership <ul><li>From Winning , p. 61: </li></ul>Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others. 06/11/10 SPL DEVELOPMENT SERVICES, INC.
    7. 7. Performance Planning Dialogue between manager and staff to establish clear, specific performance expectations at the beginning of the performance cycle. Performance Management (PM) is a Continuous Process Ongoing Coaching Two-way discussion which focuses on recognizing the staffs excellence & areas for improvement & learning, as well as identifying barriers to performance. Multiple Sources of Feedback Process which provides staff with performance information to supplement manager feedback; may includes feedback from sources such as self, Manager, peers, other clients. Performance Review Two-way discussion & written document focusing on staff performance, areas of excellence, goals for improvement & development needs. Performance Criteria Information that provides the foundation for performance; competencies, standards of performance, job description (expectation) & goals.
    8. 8. Key Roles and Consultations Regards the Current and Desired System <ul><li>Manager (Supervisor) </li></ul><ul><li>Human Resources Generalist </li></ul><ul><li>Human Resources System Design </li></ul><ul><li>Senior Management </li></ul><ul><li>Employee </li></ul><ul><li>Professional Staff Contributors </li></ul><ul><li>Other? </li></ul>
    9. 9. Partnerships With Managers And Employees <ul><li>Focus on Employees Behaviour and Performance (observable) </li></ul><ul><li>Focus on Future </li></ul><ul><li>Look at Immediate and Timely Feedback Regards Correction </li></ul><ul><li>Think about Supporting Employee Excellence </li></ul>
    10. 10. New Practitioners Can... <ul><li>Understand the Forward Focus </li></ul><ul><li>Develop and Encourage Listening Skills </li></ul><ul><li>Promote Solid and Timely documentation </li></ul><ul><li>Promote Performance Development in the HR team - i.e. Modeling </li></ul><ul><li>Be Open to Dialogue about the System and its Continued Future Development </li></ul>
    11. 11. Generalists can... <ul><li>Keep a Forward Focus on Performance </li></ul><ul><li>Model the Desired Behaviours and Performance </li></ul><ul><li>Build Partnerships with Leaders to Solve their Business Issues </li></ul><ul><li>Provide Training and Skill Development </li></ul><ul><li>Promote Communication and ‘Selling the Program’ </li></ul><ul><li>Link to a Change Management Agenda and Skills </li></ul><ul><li>Promote the Measurement of Performance Results </li></ul>
    12. 12. HR Organizational Development and Strategic Roles... <ul><li>Maintain a Forward Focus </li></ul><ul><li>Gather Information on, and Understand, Business Requirements </li></ul><ul><li>Diagnose Desired Culture and Style </li></ul><ul><li>Envision New Tools and Systems as well as Future Needs </li></ul><ul><li>Identify Obstacles, Readiness for Change </li></ul><ul><li>Communicate Vision and Forgetting about HR </li></ul><ul><li>Adjust System for Buy in and Engagement </li></ul><ul><li>Link to Other Systems (i.e. Change Management & Training) </li></ul>
    13. 13. What is coaching? Coaching is an everyday, automatic, and ongoing process to provide performance feedback and encourage continued staff growth and development Coaches encourage people to develop themselves
    14. 14. Why coach? Benefits of Coaching Clear, Mutual Expectations Self-Reliant vs. Boss-Reliant Performance Improvement Increased Job Satisfaction
    15. 15. Managing vs. coaching Reacting Delegating Tasks Controlling Conducting an annual performance review Goal-setting and planning Assigning responsibility Affirming and Supporting Observing and providing feedback on a regular basis Communicating clearly and frequently, and asking the right questions Communicating infrequently, often failing to use clarifying questions The Role of a “Traditional” Manager Includes: The Role of a Coach Involves:
    16. 16. Feedback is the essence of coaching Feedback is essential to staff Development. It not only helps staff correct mistakes before they become habits, but it also: Reinforces positive behaviours Encourages the development of desirable work habits Helps staff achieve their goals Focus on the forward
    17. 17. Key Elements of Coaching <ul><li>F.R.A.M.E Coaching Model </li></ul><ul><li>F – Focus on each interaction </li></ul><ul><li>R – React non judgementally </li></ul><ul><li>A – Ask thought provoking questions </li></ul><ul><li>M – Monitor progress and learning </li></ul><ul><li>E – Encourage continued growth </li></ul>
    18. 18. Tips for providing positive and constructive feedback <ul><li>Describe the behavior you are recognizing, such as meeting a deadline, surpassing productivity projections, or participating more fully in a meeting. </li></ul><ul><li>Emphasize the impact of behavior so that the person can clearly see why you believe it is important. You can talk about the impact on you, the job, the Firm the team, etc. </li></ul><ul><li>Let the staff member know exactly what behaviors to continue, and what behaviors not to continue. </li></ul><ul><li>Develop a habit of looking for and commending specific positive behaviors; such reinforcement will increase the incident of those behaviors. </li></ul><ul><li>Respect the staff member’s need for privacy. Your reaction to a staff member’s behavior or performance should be between you and the staff member. </li></ul>
    19. 19. Tips for providing positive and constructive feedback <ul><li>Give feedback that is specific and behavioral, rather than general and judgmental. Focus on the work, not the person. </li></ul><ul><li>Express your observations calmly. </li></ul><ul><li>Avoid overwhelming the staff member with too much feedback all at once. </li></ul><ul><li>Focus on the future and, through your discussion, identify the specific behavioral change that is required. </li></ul><ul><li>Clearly identify the payoff or positive outcome of a desired behavior. </li></ul><ul><li>Provide the appropriate balance of positive and negative feedback. </li></ul>
    20. 20. Building a High-Performance Workforce <ul><li>Ensure employee understanding of performance standards. </li></ul><ul><li>Create performance standards that are perceived as fair and linked to organizational success and strategy. </li></ul><ul><li>Provide feedback to employees from multiple sources. </li></ul><ul><li>Understanding, Connection, and Fairness are more important than system design and structure per se– because they Build Engagement and Drive Individual and Organizational Performance </li></ul>
    21. 21. Building a High-Performance Workforce <ul><li>Create a culture with free flow of information, innovation, openness and flexibility. </li></ul><ul><li>Differentially treating strong and weak performers is vital, but its ultimate impact on employee performance is limited. </li></ul><ul><li>Building a high-performance workforce is not a one-year process. </li></ul><ul><li>Continuous improvement efforts are critical to the ongoing success of your program. </li></ul>
    22. 22. Barriers and Obstacles <ul><li>Some Barriers... </li></ul><ul><li>No Forward Focus on Employee Development </li></ul><ul><li>Managers not taking the time to ‘do it ... Well’ </li></ul><ul><li>No Constructive Feedback Skills </li></ul><ul><li>Poor Listening Skills </li></ul><ul><li>Each Organization and System will Have Its Own Barriers </li></ul>
    23. 23. Checklists Handouts <ul><li>Process Checklists </li></ul><ul><ul><li>Planning Discussion Checklist </li></ul></ul><ul><ul><ul><li>Planning is the first step in managing staff performance. During planning, the manager and staff member: </li></ul></ul></ul><ul><ul><ul><ul><li>Establish and agree upon performance expectations; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Clarify what the staff member will be evaluated on; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Set any goals and/or objectives for the staff member; and, </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Set the stage for ongoing feedback and coaching throughout the year. </li></ul></ul></ul></ul><ul><ul><li>Evaluation Discussion Checklist </li></ul></ul><ul><ul><ul><li>Overall performance is measured through the staff member’s results-based objectives achievement and competency level rating. All managers should prepare for the evaluation discussion by reviewing performance and making draft ratings, if desired. During the evaluation meeting, managers should discuss ratings with the staff member, and make modifications if appropriate. </li></ul></ul></ul><ul><ul><li>Mid-year Discussion Checklist </li></ul></ul>
    24. 24. Org. Culture and the New Focus There is a tendency to Isolation and ‘not sharing’ Managers are ‘Not Listening’ Mgrs. Transactional and Busy/Busy/Busy Lack of Skills Communication + Engagement = Pride Active Hearing/ Nothing is too Trivial to Address Demonstrate the link to Making their Job Easier Prioritize and Deliver Practical Learning & Tools Listening Skills + Regular Employee Surveys No Connection By Management to Employees Typical Org. Current State: Desired Future State:
    25. 25. Org. Culture and the New Focus No Organizational Focus on Continuing and Persistent Improvement A Retrospective, Backward Focus Re Performance Keep a focus on the shifts in Skills that are needed for employees to succeed Build a System that Builds Performance to meet Organizational Needs Typical Org. Current State: Desired Future State:
    26. 26. ROI of Performance Management <ul><li>Providing accurate informal feedback increases employees intent to stay by up to 35%. </li></ul><ul><li>Setting realistic performance expectations increases employees discretionary effort by up to 27%. </li></ul><ul><li>Employees stated that they achieve 6.2% more of their stated goals because of an established performance management program. </li></ul><ul><li>A modest improvement in performance can equal big returns. </li></ul><ul><li>Focusing on employee strengths in formal reviews can have a dramatic impact on performance (~37%), however, only 15.7% of managers are effective at it. </li></ul>Source: Corporate Leadership Council Performance Management Survey
    27. 27. What is change management? <ul><li>&quot;Change management is the process, tools and techniques to manage the people-side of business change to achieve the required business outcome.“ </li></ul><ul><li>“ What gets measured gets done” Drucker </li></ul>
    28. 28. Common Reactions to Change While the goal of the project is to build an efficient and effective system, the goal of change management is to reduce the ‘performance dip’ that can occur on a project and enable people to use the system efficiently and effectively.
    29. 29. Managing Change <ul><li>To embark on a journey of change, people need to understand: </li></ul><ul><ul><ul><li>The reasons why the change is necessary </li></ul></ul></ul><ul><ul><ul><li>Where the change is leading and what the future looks like </li></ul></ul></ul><ul><ul><ul><ul><li>Current state vs. Future State </li></ul></ul></ul></ul><ul><ul><ul><li>How it is going to be accomplished </li></ul></ul></ul><ul><ul><ul><li>Their role in making it happen </li></ul></ul></ul><ul><ul><ul><ul><li>Communication Strategy </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Training Strategy </li></ul></ul></ul></ul>
    30. 30. Role of Leadership During Organizational Change <ul><li>At all levels, each individual is responsible for completing critical activities and taking specific actions to support change </li></ul><ul><ul><li>Leadership must take on the role of Change Agent and Change Enabler </li></ul></ul><ul><li>Initiate the cause </li></ul><ul><li>Convey a single, clear vision (incl. rationale) </li></ul><ul><li>Commit to goals </li></ul><ul><li>Form Guiding Team </li></ul><ul><li>Reward successful change leaders </li></ul><ul><li>Recognize strong performance </li></ul>Leaders Change Agent <ul><li>“ Project manage” change </li></ul><ul><li>Meet milestones </li></ul><ul><li>Manage the Human Change Process </li></ul><ul><li>Get frontline input </li></ul><ul><li>Monitor commitment levels </li></ul><ul><li>Create and retain advocates </li></ul><ul><li>Celebrate successes </li></ul>Managers Change Enabler <ul><li>Stay open to new ideas </li></ul><ul><li>Be honest about own progress through Human Change Process </li></ul><ul><li>Stay positive </li></ul><ul><li>Express your concerns without making it personal </li></ul><ul><li>Balance the needs of the organization with your own </li></ul>Staff/Self Change Participant
    31. 31. The Principles of Change Leadership <ul><li>There are several fundamental principles and common misconceptions about change </li></ul><ul><li>Principles of Change </li></ul><ul><ul><li>Change is a process, not an event, and is often difficult to sustain </li></ul></ul><ul><ul><li>Change process is same no matter the type; includes performance drop </li></ul></ul><ul><ul><li>Individuals do not resist change, resist disruption in expectations </li></ul></ul><ul><ul><li>Impact of change defined by each person’s reference point </li></ul></ul><ul><ul><li>Organizations/individuals can only absorb so much change </li></ul></ul><ul><li> Change Misconceptions </li></ul><ul><ul><li>Change happens quickly and time takes care of everything </li></ul></ul><ul><ul><li>Change drivers will be seen in a rational manner </li></ul></ul><ul><ul><li>Leadership behaviour is invisible to rest of organization </li></ul></ul><ul><ul><li>Weak people are ones who leave; survivors are glad they have a job </li></ul></ul><ul><ul><li>If the communication is done “right” the first time, it is enough </li></ul></ul>
    32. 32. The Risk of Reactive Change Management <ul><li>All organizational change affects productivity and morale </li></ul><ul><li>Successful organizations lead change to maximize ROI of the initiative and facilitate returning to the “Neutral Zone” as quickly as possible </li></ul><ul><li>By merely reacting to change, the following outcomes are more likely: </li></ul><ul><ul><li>Increased resistance and conflict </li></ul></ul><ul><ul><li>Issues not identified or resolved proactively, delaying the program </li></ul></ul><ul><ul><li>Lack of employee motivation to work efficiently and effectively </li></ul></ul><ul><ul><li>Early results not sustained </li></ul></ul><ul><ul><li>Missed time or budget targets </li></ul></ul><ul><ul><li>Loss of leadership credibility </li></ul></ul><ul><li>Only by systematically addressing and managing employee’s behaviours and reactions throughout the entire change process can productivity and morale be sustained or enhanced </li></ul>
    33. 33. Using the Employee Survey <ul><li>By: </li></ul>CEO and Board Performance Planning Dialogue to establish clear, specific performance expectations at the beginning of the performance cycle. Translation to Senior Team+ Organizational Performance Objectives Senior Team sets a Plan to establish performance objectives that will integrate the organizational excellence & areas for improvement & learning, as well as identifying barriers . Front Line Managers Process which provides staff with performance information by manager feedback; may includes feedback from sources such as self, Manager, peers, other clients. All feedback linked to Organizational Performance Objectives Organizational Employee Engagement Survey Focusing on staff performance, areas of excellence, goals for improvement & development to meet staff needs and build engagement Capability Dictionary Information that provides the foundation for performance in core competencies, standards of performance
    34. 34. Top Ten Tips - Shift to a Performance Development and Coaching Culture <ul><li>Business Objectives Clear and Priority 1 </li></ul><ul><li>Communications Listening Skills Key </li></ul><ul><li>Set Realistic Program Priorities </li></ul><ul><li>Think about Change Early and Often </li></ul><ul><li>Forget HR needs – Focus on the Business </li></ul>
    35. 35. More Regards the Top Ten <ul><li>6. Always Adapt the Program to The Culture </li></ul><ul><li>7. Training and Building Skill essential to success </li></ul><ul><li>8. Cultural Change Strategies </li></ul><ul><li>9. Seek continuous improvement vs. Leaping </li></ul><ul><li>10. Measure Outcomes/impact and business results not just how many completed </li></ul>
    36. 36. Thanks for your Attendance and Interest! <ul><li>Patrick Hartling </li></ul><ul><ul><li>902 489 4615 </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>SPL Development Services Inc. </li></ul></ul><ul><li>John Zettler </li></ul><ul><ul><li>902 490 8558 or 902 403 0525 </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>Stewart McKelvey </li></ul></ul>
    37. 37. Appendix – Planning Checklist
    38. 38. Appendix – Mid-year Checklist
    39. 39. Appendix – Evaluation Checklist