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PERFORMANCE MANAGEMENT How does your organization measure up?

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  • 1. PERFORMANCE MANAGEMENT How does your organization measure up?
  • 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 optimum individual, team and developing and implementing cutting edge organizational performance is Performance Management processes. crucial, yet most organizations have performance management processes Our global HR software division facilitates that, at best, have little or no the support of such processes through our proven impact. leading web-based Performance Management software, Performance Pulse™. Effective solutions to the classic Performance “Companies with year-round performance Management shortfalls are now available and appraisal systems significantly out-perform can deliver: competitors lacking such systems in financial measures, such as return on equity, Organizational performance monitoring. stockholder return, sales growth and Automated process management. cashflow.” Quality definitions/plans of individual Boston Consulting Group performance. High levels of individual commitment to performance plans. Strict alignment of individual performance Organizations are falling into some common plans with organisational goals. traps: Integration of plans for outputs activity/ behaviour and development. Many processes focus primarily on filling Continuous performance improvement. out forms to record history rather than on Dynamic plans; responding to changing enhancing sustainable performance to demands and circumstances. build a better future. Valid, reliable, differentiating and useful assessment data about people, their jobs Processes that are claimed to motivate and their performance. and guide staff are, more frequently than 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 core components in effective diagram must also be viewed as a whole, performance management; those that where the interlinking and continuous lead to sustainable high performance. elements work together. To truly improve individual and organizational performance, you should consider each element individually and their inter-relationship within the context of your organization.
  • 5. Key Performance Facilitators Setting Direction Planning & Aligning Direction Setting is the process whereby Improved direction setting and role clarification higher level goals, plans and organizational increase the chance that individuals are clear about values are both set and communicated down what is expected of them. The next step is to through the organization. At the highest create detailed individual performance plans and level, the formal descriptions typically ensure that these are tightly aligned to maximise include the vision, mission, strategy and the collective performance. Individual performance values. At other levels, they are made up of comprises three elements: Division Plans, Department Plans and Corporate Initiatives. Nearer to individuals, Outputs (Goals/Objectives/KPI’s) – The What. they may include ‘my boss’ goals’, ‘what our Effective Performance Planning articulates team is expected to achieve’, ‘what the organizational key performance indicators (KPI’s) values look like in my role’ and ‘the in the form of individual SMART (Specific, leadership competencies’. Employees are Measurable, Achievable, Relevant and Time- clear about what is expected of them and bound) objectives. The number of goals and level why. of detail varies from organization to organization. Measures can include quantity, quality, use of Clarifying Roles resources and timeliness. Clarifying Roles takes two forms: Activities/Behaviours – The How. Two key elements having established the goals 1. Clarifying each individuals responsibilities are: in relation to their day-to-day role. 2. Defining each individual’s responsibility Be clear what activities are required within the organization’s performance (tasks) to enable goal achievement. management processes and system. Identify the behaviours that will support the organizational 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 organizational 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 increased which to base change. It brings objectivity to performance, Performance Assessment is still an otherwise subjective process; laying the critical. foundation for evaluation and appraisal. Without valid, reliable, differentiating, Measurements of outputs typically include comparable and useful assessment data, HR is quantity, quality, use of resources and unable to develop truly fair and meaningful HR timeliness (against planned interim and decision support tools for such processes as end-points). Succession Planning, Development Planning, Talent Pool Management and Performance Measurements of behaviour and 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 at include compliance, satisfaction and meaningful judgements. Circumstances, return on investment. challenges and other potentially distorting factors are taken into account. Enabling & Enhancing Rewarding & Recognising The real purpose of Performance Management is to increase performance; Few people are motivated primarily by money; ‘Enabling and Enhancing’ focuses on this however, most individuals’ minds become more improvement dimension, addressing the focused on issues when the importance of them critical performance factors of: is underpinned by some potential reward or consequence. Capability – training, coaching, equipping. For most employees, many factors other than pay impact motivation and focus; recognition, Opportunity – access, resources, space/ feedback, opportunities all play their part. An empowerment. effective Performance Management system therefore addresses all of these. Inclination –recognition, reward, opportunities.
  • 7. How Pilat Can Help - Process Pilat has developed a range of best Process Audits practice processes, tools, software and programmes to help If it works, don’t fix it. If it doesn’t, do you know why? Pilat can help clients audit their organizations 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 organizations 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 organization. Our range of process audits include: Performance Management Health Check From an organizational 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 organizations 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 Using Technology to Drive and simple task, but the challenge is to design Sustain Performance effective processes and systems that make it so. The most effective performance management processes are designed to Based on our in-depth experience, we work seize on the power of contemporary with our clients to design effective technology. Likewise, the most effective Performance Management processes. In technology is configured to support desired each design we ensure that the following processes; not to dictate or restrict them. issues are addressed, but configure the processes and systems to suit each client’s Pilat has developed Performance Pulse™, a individual requirements: module in the HR Pulse® suite of products. Performance Pulse can support virtually any Direction Setting performance management process, including Clarifying Roles any one or more of the typical performance management components outlined. Planning & Aligning Outputs (Goals/Objectives) HR Pulse® can be rapidly configured to provide mass user web-based support for Activities/Behaviours each client’s unique requirements. Despite Development sometimes extensive configuration, all clients Monitoring & Measuring share the same core HR Pulse system architecture. Pilat can therefore offer Enabling & Enhancing guaranteed upward compatibility, and can Assessing & Evaluating assure 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 performance and supports ad-hoc drive behavioural change and contribute comments, journal entries, review of positively to business performance. For objectives upon completion, interim example: reviews and reviews based on projects. Direction Setting – Performance Pulse™ Rater Feedback – Performance Pulse™ can integrate any relevant background can help to raise the quality of feedback or other supporting information such as by monitoring rating patterns and corporate mission statements, values or providing appropriate prompts or key result areas. It can measure and challenges. track business as well as individual 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 organizational need. Tools for identifying broken chains and for tracking and costing the achievement of organizational 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 organizations 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 is a link between individual and articulate the organizational vision, organizational goals and plans. mission and values. Unfortunately, these processes often 2. Organization Direction Setting and do not work; they do not impact the Sharing – Facilitation of high level very people the process was workshop(s) to create and communicate designed to change. a clear definition of the organizational 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 organizations, 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 organizations 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 organizations 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 telecommunications, 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 organization 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 Management. There are work-related activities that reflect 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 - Creating a Performance Culture Creating a Performance Culture is The Solution something which Pilat can work in The outcomes to be achieved were clarified partnership with your organization to under the approval of the CEO. Working in achieve. This plays a vitally important partnership, Pilat designed a high impact part in attaining your goals, as it forms behavioural change programme with 5 key elements, including: a pre-programme measure the basis on which your performance (360° feedback), an intensive 3 day measures will succeed or fail. development intervention workshop, a follow- up day 8 weeks after the workshop to maintain We can help you to achieve your goals by momentum and allow sharing of progress creating a tailored programme designed to made, support & accountability by assigning an engage your employees in how the executive sponsor to each programme, and a organization as a whole can improve results, post-programme re-measure 6/8 months after through better performance. An example of the workshop to establish and report on the how this has been implemented is outlined in changes. the following case study. Implementation CASE STUDY At the time of publishing, Pilat has delivered 5 MULTI-NATIONAL MANUFACTURER workshops with 55 senior leaders in total. All 5 workshops have been sponsored by an Background Executive Team member, and delivered in Like many companies our client continued to partnership. be impacted by the rising costs of fuel and raw materials. In 2007 however, after a period Results of financial cutbacks, the company embarked The client has added £500K additional profit to on a journey for sustainable profitable their bottom line in 8 weeks, and achieved a growth. Leaders of the organization built a 10% shift in targeted leadership behaviours. formidable 7 pillar strategy. At the heart of this strategy was a plan to cultivate a high The programme has released a network of performance culture that would help the leaders passionate about the business and able organization to achieve its ambitious goals. to identify the behaviours required to cultivate a high performance culture. The Challenge Pilat were invited to design and deliver a The leaders of the organization are able to programme which would equip leaders to support each other on personal and business build the desired culture and inspire development and are eager to coach and commitment to the organization’s goals. develop their teams. The challenge was to create a cost effective development programme which would result in genuine behavioural and cultural change, and produce visible financial payback to the organization.
  • 15. How Pilat Can Help - Data Analysis Performance Management processes Comparative analysis of multiple produce large volumes of data, yet assessments by an appraiser looking at: much of this is not typically used. Potential harshness/leniency Pilat works with its clients to optimise Differentiation between factors the use that is made of data, as well Differentiation between performers as to increase the quality and the Appraiser Feedback (Individual/ extent to which it can be used. Real-time) Pilat provides: Real-time rater feedback covering: Internal/external benchmarking Use of scale Validating competency models Potential harshness/leniency Analysis of correlations between Differentiation between factors Competency assessments and Differentiation between performers independent measures of output, culture and/or satisfaction Correlations between e.g. 360 degree, appraisals Appraiser Feedback (Individual/Off-line) and survey results Such correlation studies can test performance hypotheses and identify potential cause-effect relationships. 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 organizational performance. For 30 years, our business psychologists have been leading best practice in all aspects of Talent & Performance Management, Organizational & Management Development, 360 Degree Feedback®, Metrics, Job Evaluation & Reward. Our experts combine a deep understanding of people management and organizational 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 organizations 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 Tel Aviv Stock Exchange as Pilat Technologies International Ltd. www.pilat.com 360 Degree Feedback is a registered trademark of Pilat Europe Ltd. © Pilat Europe Limited 2008 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