People Performance Improvement

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  • Recruit talent that meets needsDirect performance enablers 57%Job relevant information, experiences, resourcesIndirect performance enablers 40%Employee attitudes and behaviours
  • CEB analyzed the drivers and performance of more than 20,000 employees across more than 40 organizations globally and identified 10 competencies that, when exhibited together, set high performers apart from their co-workers:  1. Ability to Prioritize  2. Works well in teams  3. Organizational Awareness  4. Effective Problem Solving  5. Self-Awareness  6. Proactivity  7. Ability to Influence  8. Effective Decision Making  9. Learning Agility 10. Technical savvy
  • Capability represents the identity of your organisation perceived by both your employees and your stakeholders.It is your ability to perform better using a distinctive and difficult to replicate set of business attributes. Capability is a capacity for a set of resources to integratively perform a stretch task.Important though intangible Leaders are responsible for building organisation capability.You need the ability to translate organisational direction into roadmaps, vision into action and purpose into process. To do so, you must demonstrate at least five abilities:To build your organisational infrastructure To leverage diversityTo deploy teamsTo design human resource systemsTo make change happen
  • Use of the capability framework is key here.Common experience is that sometimes people meet performance objectives and goals however how they do it is the real area for improvement.Forces staff member and manager to consider all aspects of staff performance.
  • Use of the capability framework is key here.Common experience is that sometimes people meet performance objectives and goals however how they do it is the real area for improvement.Forces staff member and manager to consider all aspects of staff performance.
  • Use of the capability framework is key here.Common experience is that sometimes people meet performance objectives and goals however how they do it is the real area for improvement.Forces staff member and manager to consider all aspects of staff performance.
  • Use of the capability framework is key here.Common experience is that sometimes people meet performance objectives and goals however how they do it is the real area for improvement.Forces staff member and manager to consider all aspects of staff performance.
  • Use of the capability framework is key here.Common experience is that sometimes people meet performance objectives and goals however how they do it is the real area for improvement.Forces staff member and manager to consider all aspects of staff performance.
  • PAR talks about SMART goals.Introducing performance objectives is new to Treasury.Focus here is on results not on activity.Random sample of reviews from 2009 – 2011 – PAR goals read as list of activities.Focus on briefing for managers is introduction to how to develop effective performance objectives Dangers in not setting effective performance objectives.
  • Introduces the 70: 20: 10 learning frameworkFormalises the importance and focus on informal learning methodsIntroduction of a new learning and development policySystematic approach to development, planning and evaluating learning needsProvides guidance on how to prioritise learning and development needsIncreases clarity between development opportunities and how they will benefit the individual and the organisation
  • Use of the capability framework is key here.Common experience is that sometimes people meet performance objectives and goals however how they do it is the real area for improvement.Forces staff member and manager to consider all aspects of staff performance.
  • TRANSFER OF LEARNING Not completedCompletedApplied new skill Positive business impact Ensures measure and evaluate learning programs, not just  sheets but what impact have they had to individual performance and the organisation.

Transcript

  • 1. Main TitleSubtitlePublic Sector Strategic HR ConferenceHotel Realm, Canberra13 March 2013LORRAINE SALLOUMNSW Treasury
  • 2. What we will explore What the latest research tells us about a high performing culture,organisation, employees and the APS The concept of organisational and individual capability The implications for defining critical capabilities and humanresource practice Using the NSW Treasury experience to illustrate ways to driveconsistency and engagement in performance management usingcollaborative top-down and bottom-up approaches
  • 3. Driving a High Performance Culture Performance improvement is driven by combination of right-fittalent and direct and indirect performance enablers Employee performance is hindered by manager and organisationalbarriers Engagement established across time leads to better discretionaryeffort and retention, which organisations can leverage to improveorganisational outcomes Rather than focusing on the manager, diversify your approach anduse multiple agents Many top drivers of engagement are most impactful when deliveredthrough peersFrom CLC Human Resources www.clc.executiveboard.com
  • 4. Ten Imperatives for Driving a HighPerformance Culture1. Hire for right fit2. Greater clarity between roles and objectives3. Clarify the link between pay and performance4. Help managers provide constructive feedback5. Provide high impact on-the-job learning opportunities6. Empower employees to impact the organisation7. Build connections to allow employees better execute workactivities8. Align employee interests to on-the-job opportunities9. Remove organisational barriers to manager effectivenessand impact10. Redirect leader behaviour to meet changing business needsFrom CLC Human Resources www.clc.executiveboard.com
  • 5. High Performing Workplaces IndexPublished by the Society for Knowledge Economics inOctober 2011 People management is a key priority Involve people in decision making processes More responsive to customer and stakeholder needs Encourage a high degree of responsiveness to changeand learning Enable their staff to fully use their skills and abilities atwork
  • 6. The new work environment and thehigh performance employee* Frequent organisational change More interdependent work Knowledge workHigh Performing Employee Adapts to change Works collaboratively Applies judgement*CEB, Breakthrough Performance in the New Work EnvironmentIdentifying and Enabling the New High Performer, 2013CEB analysed the drivers andperformance of more than 20,000employees across more than 40organisations globally10 competencies exhibited together sethigh performers apart:1. Ability to prioritise2. Works well in teams3. Organisational awareness4. Effective Problem Solving5. Self-awareness6. Proactivity7. Ability to inflence8. Effective Decision Making9. Learning Agility10. Technical Savvey
  • 7. CEB’s model for high performancein the new work environmentIndividual task performance (employees effectiveness atachieving individual tasks and assignments)PLUSNetwork Performance (employee effectiveness at improvingperformance of others broadly across the organisation)=Enterprise Contribution (An employees effectiveness ofmeeting his or her performance goals and contributing to theroles of others)
  • 8. Developing High Performance in theAPSCrawford School Working Paper No.12-09:*Attention to system wide architecture, organisation and individual and dynamic interaction betweenthem.Better understanding of the role of capabilities and need for organisation-level strategy for performancemanagementGuiding principles to inform performance management approaches1. Adaptability to context – ability for org/ind to anticipate, respond andadapt to changing circumstances2. Mutuality – employees/mgrs mutually responsible/accountable3. Understanding the important role of organisational competencesand dynamic capabilities for high performance – organisation levelrequirements and inter-related role of competencies and capabilities4. Performance management capacity – ability of all managersemployees to undertake perf management effectively
  • 9. What does this all mean?Implications for: Recruitment Employee engagement and the development and implementation of initiatives Employee support and development Performance management systemsThinking beyond the traditional models to ensure we focuson the critical “new world” capabilitiesDeveloping a strategy to building critical competenciesand capabilities, at the individual and organisational level.
  • 10. Some practical considerations fromthe „new work‟ environment* Redefine roles – connector, contributor, consumer Build complimentary teams made up of core teams andadditions, keeping the core teams that work Emphasise network management alongside knowledgemanagement (document key work processes and keyrelationships to enable transfer network knowledge overtime) Encourage and enable collaboration with externalpartners
  • 11. Implications for HR Practice Critical capabilities form the foundation of a performanceimprovement strategy. Capability framework is the basis of HR initiatives. Recruitment focus and development spend will produce betterorganisational results if they focus on critical capabilities at theindividual and organisational level. Performance management system should measure the achievementof objectives and goals and how capabilities have been demonstrated. Inform cross organisation performance objectives and standards andcapability requirements.
  • 12. Focusing your effortsIndividual OrganisationalTechnical An individual’sfunctionalcompetenceOrganisationalcore competenceSocial An individualsleadershipabilityOrganisationalcapabilitiesAdapted from ‘Capitalizing on Capabilities’ Harvard Business Review, Dave Ulrich and NormSmallwood
  • 13. Defining Critical Capabilities – the keyquestions and considerations What are the capabilities that differentiate high performers? Benchmark to establish the differentiators for high performance inindividuals functional (technical) competence and capability. What is the performance expectation/standard that you want as aminimum? The tipping point between a person being competent and being a highperformer? If you want to increase organisational performance aim for a highperformance standard Include the “new world” capabilities for high performance (Adapts tochange, Works collaboratively, Applies judgement)
  • 14. Background – NSW Treasury NSW Treasury was established in April 1824 and is the oldest continuingGovernment agency in Australia. Key role to advise the Treasurer and the NSW Government on state financialmanagement policy and reporting, and on economic conditions and issues. Approximately 400 staff (increased to approx 550 with IR/LSC in late 2012)predominantly with a mix of economics, policy and finance backgrounds High level of engagement and dedication, and low turnover Largely intrinsically motivated ‘Want to make a difference to the State of NSW’ Small HR Team (Manager & 5 FTE staff) with payroll and recruitment outsourced
  • 15. The People Strategy 2012-15• Outward looking people strategy (not for HR but for thebusiness)• Used the „Investors in People‟ international standard asfoundation for discussion and development• Not developed by HR professionals only but input fromacross the organisation• 4 key areas with a overarching goal, the key initiativesand activities to meet that goal Striving for Excellence and Living Our Values Build Leadership Capacity Optimising Workforce Mix and Structure Strengthening Workforce Capability Set up reference groups with representatives from acrossthe business for each streamVALUES - LEADERSHIP - SYSTEMS - CAPABILITY
  • 16. 16An opportunity to improve..• Improve the PAR process – structure, practical,relevant• More clearly articulated performance criteria• Clear and regular manager communication andinformal feedback (performance strengths andweaknesses)• Guidance for skills development and careerprogression• Better alignment between reward and recognitionand performance• Dealing with poor performanceOctober 2011 Performance Management Survey
  • 17. The First Step - Designing the NSWTreasury Capability Framework Clarified requirements with the business and key criteria to meet needs Looked nationally/internationally for a framework we could use as askeleton and short-listed the NZ Treasury framework, NSW PublicSector Capability Framework & UK HM Treasury Capability Framework Tested against requirements and found the UK HM Treasurycapability framework best met requirements for use as skeleton Agreed to build a core capability framework that all staff must meet,then overlay that with a technical competence framework for eachspecialty area Extensive consultation and workshopping to build the core capabilityframework – One quarter of organisation involved and 27 versions! 17
  • 18. 18The NSW Treasury Capability Framework
  • 19. 19The NSW Treasury Capability Framework
  • 20. 20Core Capabilities apply to everyone
  • 21. 21But how they are demonstrated is differentat each level
  • 22. Effective / ineffective descriptors22
  • 23. Applying critical capabilities toRecruitment.. Not every capabilityIdentify the critical capabilitiesfor high performance in the roleand include in PositionDescription and adverts.Design rigorous selection toolsthat focus on providingevidence about criticalcapabilities.Set a high benchmark /standard that has to be met tobe offered a position.Leave positions unfilled inpeople do not meet thatstandard.
  • 24. 24NSW Treasury Development Pathways
  • 25. 25A set of principles to guide design of thePerformance Management SystemKey PrinciplesDifferentiating the way that people are performance managed Systematic approach in place for solid performers Identification and treatment of poor performers Supporting exceptional talentSuccessful implementationIntegration of Process Metrics Managerial Capability Reward and Recognition architecture
  • 26. 26The Performance Excellence Framework
  • 27. The Performance System & Link toCapabilities Performance Excellence Framework► The system components Performance Excellence Program► The process and templates The support tools► Manager and staff toolkits► Capability Framework► Development Pathway The training and support► Performance Conversations► Action Learning Program► Process Briefings► One-on-one coaching and support27
  • 28. 28The Policies and the Programs that cometogether to establish the framework
  • 29. 29Painting the picture…The importance ofmessaging to get buy-in
  • 30. 30• Introduces a focus onperformance objectivesPO = R + M + C + TwherePO = Performance ObjectiveR = A single, specific resultM = A measure of the single, specific resultC = Conditions under which the performance must occurT = A time limit
  • 31. 31• A systematic approach to L&D• Supported by Learning andDevelopment Policy andDevelopment Pathways tool• Increases clarity betweendevelopment and individual /organisational benefit• Recognises informal learning• Supports managers approvalprocess
  • 32. 32What next?• The introduction of a ‘TreasuryCapability Framework’ in thereview process• Focus on continuousimprovement• Ensures balanced feedbackand guides conversation
  • 33. 33• Encourages transfer oflearning to the workplaceby introducing status ratingto measure impact• Status rating includesdevelopment undertaken,applied in the workplace orpositive business impact• Articulates and recognisesthe impact of informallearning
  • 34. Driving consistency & engagementProblem Solving Appreciative inquiryFelt need, identification of problem(s)Appreciating, valuing the Best of WhatIsAnalysis of Causes Envisioning what might beAnalysis of possible solutionsEngaging in dialogue about whatshould beAction Planning (treatment) Innovating, what will beUse 2 alternative approaches with staff and managers –throughout design and implementationQuestions answered collectively included:• What are common performance objectives?• What are the performance standards across areas?• What does the rating scale really mean?
  • 35. 35The Typical Rating Scale.. A breedingground for inconsistency
  • 36. 36What does the rating scale mean?DevelopingUnsatisfactoryCapable Impressive• What drives rating decisions?• What is it that your managers and executive value?• Are there any inconsistencies between groups?• Encourage conversations so performance becomes a focus.• Document the common themes and distribute to staff and managers
  • 37. Partnering and giving ownership to thebusiness37
  • 38. NSW Treasury Experience to Date Completion rates doubled from 44% in 2011 to over 90% end of 2012. Quality audit found marked improvement. A positive correlation between quality plans in a branch and areas where themanager consistently attended learning activities or sought support forperformance management. Promising signs … average performance has increased. The table below shows the case management outcomes for identifiedunderperformers in 2012
  • 39. Next steps 2 year implementation plan with evaluation andimprovements at every stage Staged implementation – getting the basics right andstrong first Adding components as implementation progresses1. Get the planning right2. Promote consistency in rating3. Introduce new evidence sources including 360 mechanism4. Incorporate network performance
  • 40. Lessons Learned Get focused on performance and align all HR initiatives (organisation / team /individual), & clarify-support-evaluate Recognise the interdependence of individual and organisational capabilities Learn from the best (tailor best practice to what suits your organisation) Create a virtuous cycle of assessment and investment Compare capability perceptions and match capability with delivery Avoid underinvestment in organisational intangibles Don’t just develop and announce, stage implementation and partner for thebest results and buy-in
  • 41. QuestionsQustion