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Performance Management A5

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  • 1. Performance Management PERFORMANCE MANAGEMENT How Does Your Organisation Measure Up? POWERING PERFORMANCE & POTENTIAL
  • 2. Measure the effectiveness of changes and learn lessons to drive continuous improvement
  • 3. Are You Really Managing Performance? In today’s competitive and rapidly Pilat HR Solution’s international consulting changing workplace, ensuring practice has invested more than 30 years in developing and implementing cutting edge optimum individual, team and Performance Management processes. organisational performance is crucial, yet most organisations have Our global HR software division facilitates the support of such processes through our performance management processes leading web-based Performance that, at best, have little or no Management software, Performance Pulse™. proven impact. Effective solutions to the classic Performance Management shortfalls are now available and “Companies with year-round performance can deliver: appraisal systems significantly outperform Organisational performance monitoring. competitors lacking such systems in financial measures, such as return on equity, Automated process management. stockholder return, sales growth and Quality definitions / plans of individual cashflow.” performance. Boston Consulting Group High levels of individual commitment to performance plans. Strict alignment of individual performance plans with organisational goals. Integration of plans for outputs activity / Organisations are falling into some common behavior and development. traps: Continuous performance improvement. Many processes focus primarily on filling out forms to record history rather than on Dynamic plans; responding to changing enhancing sustainable performance to demands and circumstance. build a better future. Valid, reliable, differentiating and useful Processes that are claimed to motivate assessment data about people, their jobs and guide staff are, more frequently than and their performance. not, viewed negatively by the very people they are designed to influence. The list of negative symptoms is seemingly endless, but with thought, conviction, effort and technology support, those ills can be treated.
  • 4. The Process Based on extensive research and our While each element below is important and own analysis, Pilat has identified the unique in driving performance, the process diagram must also be viewed as a whole, core components in effective where the interlinking and continuous performance management; those that elements work together. lead to sustainable high performance. To truly improve individual and organisational performance, you should consider each element individually and their interrelationship within the context of your organisation.
  • 5. Key Performance Facilitators Setting Direction Planning & Aligning Direction Setting is the process whereby Improved direction setting and role higher level goals, plans and organisational clarification increase the chance that values are both set and communicated down individuals are clear about what is expected through the organisation. At the highest of them. The next step is to create detailed level, the formal descriptions typically individual performance plans and ensure that include the vision, mission, strategy and these are tightly aligned to maximise the values. At other levels, they are made up of collective performance. Individual Division Plans, Department Plans and performance comprises three elements: Corporate Initiatives. Nearer to individuals, Outputs (Goals / Objectives / KPI’s) they may include ‘my boss’s goals’, ‘what our – The What. Effective Performance team is expected to achieve’, ‘what the Planning articulates organisational key values look like in my role’ and ‘the performance indicators (KPI’s) in the form leadership competencies’. Employees are of individual SMART (Specific, clear about what is expected of them and Measurable, Achievable, Relevant and why. Time-bound) objectives. The number of goals and level of detail varies from organisation to organisation. Measures Clarifying Roles can include quantity, quality, use of Clarifying Roles takes two forms: resources and timeliness. 1. Clarifying each individuals responsibilities Activities / Behaviors – The How. Two key in relation to their day-to-day role. elements having established the goals are: 2. Defining each individual’s responsibility Be clear what activities are required within the organisation’s performance (tasks) to enable goal achievement. management processes and system. Identify the behaviors that will support the organisational values / Competency models that you would wish to be displayed in carrying out the tasks, and which support excellent performance. This makes it clear for individuals the requisite steps to achieve desired performance and make an appropriate contribution to organisational culture. Development – The Growth. Individuals identify the changes in knowledge, skill or attitude that are required to deliver the objectives and plan a practical way of achieving this.
  • 6. Key Performance Facilitators Monitoring & Measuring Assessing & Evaluating This is the process via which we track While Performance Management, not progress and produce meaningful data on Performance Assessment, produces which to base change. It brings objectivity to increased performance, Performance an otherwise subjective process; laying the Assessment is still critical. foundation for evaluation and appraisal. Without valid, reliable, differentiating, Measurements of outputs typically include comparable and useful assessment data, HR quantity, quality, use of resources and is unable to develop truly fair and timeliness (against planned interim and meaningful HR decision support tools for end-points). such processes as Succession Planning, Development Planning, Talent Pool Measurements of behavior and Management and Performance Related Pay. development cover frequency, extent and quality. ‘Assessing and Evaluating’ is the step via which measurement data is accumulated, Measurements of the process typically reviewed and compared with plans to arrive include compliance, satisfaction and at meaningful judgments. Circumstances, return on investment. challenges and other potentially distorting factors are taken into account. Enabling & Enhancing The real purpose of Performance Rewarding & Recognising Management is to increase performance; Few people are motivated primarily by ‘Enabling and Enhancing’ focuses on this money; however, most individuals’ minds improvement dimension, addressing the become more focused on issues when the critical performance factors of: importance of them is underpinned by some Capability – training, coaching, potential reward or consequence. For most equipping. employees, many factors other than pay impact motivation and focus; recognition, Opportunity – access, resources, space / feedback, opportunities all play their part. empowerment. An effective Performance Management Inclination – recognition, reward, system therefore addresses all of these. opportunities.
  • 7. How Pilat Can Help – Process Pilat has developed a range of best Process Audits practice processes, tools, software If it works, don’t fix it. If it doesn’t, do you and programmes to help know why? Pilat can help clients audit their organisations design and implement performance management processes before effective performance management making commitments to change. processes and systems. Working with our clients using a variety of techniques and tools, we help organisations identify the processes, content, training and systems that would benefit most from attention. By this means we can ensure the optimum return on investment for the fastest achievement of improvement. By having a holistic and cost effective assessment of their Performance Management processes, our clients are able to: Identify strengths and weaknesses. Provide evidence to assist senior managers in decision making. Develop a consensus as to the key priorities for improvement. Target spending on the areas that most require development. Identify the extent of process consistency throughout the organisation. Our range of process audits include: Performance Management Health Check – From an organisational holistic perspective. Monitor Pulse Web-based PM Survey – Collects multiple individual perspectives. Monitor Pulse™ Audit – Includes use of the above, plus stakeholder interviews and focus groups.
  • 8. How Pilat Can Help – Process Strategic Performance Pilat Performance Portfolio Management Process Design For those organisations not wishing to Pilat has developed a Strategic Performance deploy technology to underpin their Management Design Process. This usually Performance Management processes, Pilat takes the form of facilitated workshops on offers the Pilat Performance Portfolio. This the design and implementation of positive paper-based process establishes an on-going performance management processes. performance management process via which each employee builds a performance During this process, we challenge portfolio that culminates with a holistic conventional wisdom, and incorporate performance appraisal. creative techniques to encourage new thinking. Managing Performance is not a simple task; but the challenge is to design Using Technology to Drive and effective processes and systems that make it so. Sustain Performance Based on our in-depth experience, we work The most effective performance with our clients to design effective management processes are designed to Performance Management processes. In seize on the power of contemporary each design we ensure that the following technology. Likewise, the most effective issues are addressed but configure the technology is configured to support desired processes and systems to suit each client’s processes; not to dictate or restrict them. individual requirements: Pilat has developed Performance Pulse™, a Direction Setting module in the HR Pulse® suite of products. Performance Pulse can support virtually any Clarifying Roles performance management process including Planning & Aligning any one or more of the typical performance management components outlined. Outputs (Goals / Objectives) HR Pulse® can be rapidly configured to Activities / Behaviours provide mass user web-based support for Development each client’s unique requirements. Despite sometimes extensive configuration, all clients Monitoring & Measuring share the same core HR Pulse system Enabling & Enhancing architecture. Pilat can therefore offer guaranteed upward compatibility, and Assessing & Evaluating assures its clients of the ability to evolve their Rewarding & Recognising systems continuously as their circumstances and demands change.
  • 9. How Pilat Can Help – Process As well as being able to quickly and Performance Monitoring / Evaluation effectively automate existing appraisal – Performance Pulse™ supports ongoing processes, Performance Pulse™, can re- monitoring and measurement of engineer these processes so that they drive performance and supports ad-hoc behavioural change and contribute positively comments, journal entries, review of to business performance. For example: objectives upon completion, interim reviews and reviews based on projects. Direction Setting – Performance Pulse™ can integrate any relevant background or Rater Feedback – Performance Pulse™ other supporting information such as can help to raise the quality of feedback corporate mission statements, values or by monitoring rating patterns and key result areas. It can measure and track providing appropriate prompts or business as well as individual challenges. performance. Performance Planning – The system supports a performance ‘contract’ between employees and managers. The contract may define: required competencies (HOW), objectives and measures (WHAT), the timeline (WHEN) and the contributors (WHOM). Alignment – Performance Pulse™ facilitates many methods of achieving alignment between individual performance planning and organisational need. Tools for identifying broken chains and for tracking and costing the achievement of organisational goals can also be provided. Development Planning – Plans can be identified and captured in free format or driven from developmental options aligned to competency models.
  • 10. How Pilat Can Help – Planning High performing organisations shape Pilat offers a suite of linked programmes and and then communicate a clear set of workshops, designed to power individual performance planning. strategic goals, objectives and measures of success. Processes are 1. Vision, Mission and Values Programme then designed to ensure that there – Facilitation of a program to derive and articulate the organisational vision, is a link between individual and mission and values. organisational goals and plans. Unfortunately, these processes often 2. Organisation Direction Setting and Sharing – Facilitation of a high level do not work; they do not impact the workshop(s) to create and communicate very people the process was a clear definition of the organisational designed to change. goals, and the values that complement them. 3. Team / Individual Goal Setting Workshops – Facilitation of a team in shaping its objectives, helping drive delivery of its part of the strategic plan. 4. Cross-functional Alignment Workshops – Facilitation of cross functional workshops where participants from different groups review each other’s objectives, identify any potential problems or shortfalls, and agree how these will be addressed. At the end of this process, all represented parts of the organisation can be confident that they are all pulling in the same direction. 5. Holistic Performance Planning – Facilitation of Performance Planning workshops designed to enable individuals and their managers to plan holistic performance: Goals / objectives Behaviours / activities and Development.
  • 11. How Pilat Can Help – Planning Driving Performance Improvement In high performing organisations, managers and HR analyse the drivers of high performance against each of the key result areas. They make direct links between performance outputs and performance enablers, and make this information accessible to employees and their managers. Development tips and advice are then targeted at driving improved performance in each of these enablers. This facilitates employees to initiate focused performance improvement actions. A range of services to help organisations to enhance individual and collective performance are available. 1. Job Analysis – We carry out job analysis to identify the enablers/drivers of high performance. From our work with a diverse number of organisations on Performance Management, we already have an insight into the skills / competencies that drive key result areas in specific sectors e.g. customer service and sales in the leisure sector, sales in telecomms, customer service and staff retention in retail. We use this to help inform our analysis. 2. Individual Performance Coaching – This focuses on enabling individuals to use holistic performance planning as the basis for targeted behavioural change. Individual development is used to drive sustainable on-job performance improvement.
  • 12. How Pilat Can Help – Skills Development Individual performance is often We can deliver programmes of varying described as the result of length to match the specific skills needs of the organisation and the target audience. opportunity, capability and The modules are very practical and we inclination. Pilat offers a suite of provide easy-to-apply tools and techniques training modules that address all the to support skills improvement. core capability skills of Performance There are work-related activities that reflect Management. the participants day-to-day responsibilities and we include multiple opportunities for the participants to practice and receive feedback on their skills, in order to embed the learning. Our training modules cover the following areas: Direction Setting Direction setting and sharing Clarifying Roles Role clarification – job Delegation Managing individual and team performance Planning Performance Output goal setting and alignment Activity / behaviour planning Development goal setting and planning Defining measures, standards and targets Monitoring & Measuring Performance Observing performance Measuring and recording performance Creating a performance portfolio
  • 13. How Pilat Can Help – Skills Development Enabling & Enhancing Performance Empowering Giving feedback Counselling / directing / coaching / supporting Assessing & Evaluating Performance Evaluating performance Enhancing performance assessments Rewarding & Recognising Performance Reward Recognise Positive Performance Management.
  • 14. How Pilat Can Help – Data Analysis Performance Management processes Real-time rater feedback covering: produce large volumes of data, yet Use of scale much of this is not typically used. Potential harshness / leniency Pilat works with its clients to optimise the use that is made of data, as well Differentiation between factors as to increase the quality and the Differentiation between performers extent to which it can be used. Correlations between e.g. 360, appraisals Pilat provides: and survey results Internal / external benchmarking Such correlation studies can test performance hypotheses and identify Validating competency models potential cause-effect relationships. Analysis of correlations between Competency assessments and independent measures of output, culture and / or satisfaction Appraiser Feedback (Individual / Off-line) Comparative analysis of multiple assessments by an appraiser looking at: Potential harshness / leniency Differentiation between factors Differentiation between performers Appraiser Feedback (Individual / Real-time)
  • 15. Performance Management is a state of mind, not a set of forms
  • 16. Pilat HR Solutions is an integrated human resources consultancy & IT systems solution developer. Our mission is to enable our clients to optimise the HR processes proven to underpin superior organisational performance. For 30 years, our business psychologists have been leading best practice in all aspects of Talent & Performance Management, Organisational & Management Development, 360 Degree Feedback®, Metrics, Job Evaluation & Reward. Our experts combine a deep understanding of people management and organisational development issues with the opportunities provided by advanced technology. Our flexible in-house or fully hosted systems turn theory into practice. Pilat produces results. We have unrivalled expertise in the objective and rigorous analysis of HR data, processing more than half a million assessments per year, in over 14 different languages. Pilat HR Solutions has a wide and varied client base including major global corporations and public sector bodies. We work across all sectors with organisations from a few hundred to hundreds of thousands of employees. We have a solid track record for developing tailored solutions that deliver improved performance and show impressive returns on the investment made. Pilat HR Solutions is listed on the London AIM as Pilat Technologies International Ltd. www.pilat.com 360 Degree Feedback is a registered trademark of Pilat Europe Ltd. © Pilat Europe Limited 2005 Pilat Europe Limited Pilat North America Inc. 29 Hendon Lane 496 Route 22 West London N3 1PZ Lebanon NJ 08833 United Kingdom USA Telephone: +44 20 8343 3433 Telephone: +1 800 338 9701 Fax: +44 20 8343 4656 Fax: +1 908 823 9438 E-mail: info@pilat.com E-mail: info@pilat-nai.com

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