Learn why classic appraisals systems are getting outdated. A new model is being applied in organizations, strongly linked to agile management.

1. A different model for team
appraisals
Fernando Palomo García
November 2013

2. Why traditional models suck
They are a distant system of control,
not a system of engagement

3. Why traditional models suck
They foster competition amongst
members instead of collaboration

4. Why traditional models suck
Top-to-down , 1 to 1. Leader to
follower

5. Why traditional models suck
Focused in COMPLIANCE rather
than COLLABORATION

6. Why traditional models suck
Appraisals don’t help conveying
corporate values, their only focus is
economic ( bonuses, salary
upgrades... )

7. Why traditional models suck
Already identified by Deming* (
author of the Plan-Do-Check-Act
cycle ) as one of the 7 deadly
diseases of any organization
http://en.wikipedia.org/wiki/W._Edwards_Deming#Seven_Deadly_Diseases

8. Another model
The knowledge era: people are well
prepared, reaching job satisfaction
requires:
• Mastery
• Autonomy
• Purpose
“When it comes to intellectual activity, money doesn’t work as motivation booster”
Daniel H. Pink, ‘DRIVE’ http://www.youtube.com/watch?v=u6XAPnuFjJc

9. Another model
No more monetary bonuses linked
to individual performance. Ensure
everyone in the company feels well
paid, lucky to be here.
“Pay high enough salaries to take the money off the table,
so people can focus on their job”
Daniel H. Pink, DRIVE : http://www.youtube.com/watch?v=u6XAPnuFjJc

10. Another model
Every member must be engaged
and feel responsible to educate,
integrate and help the rest of
members

11. Another model
Pay your employees what they
deserve. Based on:
• What the employee could get
elsewhere
• What we would have to spend to
replace him
• What we would be willing to pay to
keep him in his job

12. Another model
Evaluations should be used to
educate people in the organization
values.

13. Another model
A global bonus based on the
organization results is welcomed,
but NOT mandatory. Percentage
should be fixed and based on
employee salary.

14. Another model
Peers, not managers, decide who
gets rewarded. Rewards must not
be exclusionary.

15. Another model
Education is a continuous topic, not
a 6 / 12 months matter.

16. Another model
All peers must choose their team
members. The best compromise
comes from our own decisions.

17. A practical approach
The organization discovers its own
values
– Courage
– Openness
– Technical Excellence
– Quality
– …

18. A practical approach
The members list daily actions that
demonstrate commitment to the
values
• E.g. Openness:
– When I asked for feedback on my last task, the other person
answered me honestly even though it felt uncomfortable.
– When I asked about my situation within the team, my manager
didn’t hide his concerns.
– …

19. A practical approach
This list is alive and maintained
continuously

20. A practical approach
The team creates “Value coins”
• Courage coin
• Openness coin
• …

21. A practical approach
Every member is given a certain
amount of coins periodically. The
shorter the period, the better.

22. A practical approach
Every member gives coins to
whomever sticks to the values:
– If I see somebody does a good action
demonstrating she sticks to “openness”, I will
pay her a coin of “openness”.

23. A practical approach
Teams agree on the money paid to
a member.

24. A practical approach
Organizational managers evaluate
the team members periodically,
assessing their alignment to the
values based on the amount of
collected coins.

25. A practical approach
Members receive benefits based on
how many coins they have received:
• Per 5 “courage” coins you get a ticket for an extreme sport
activity
• Per 5 “openness” coins you get a massage
• Per 20 coins in the same month you get half day off
• Per 60 coins covering all different values in a quarter you get
your name in any of our products
• Per 2 consecutive quarters with 60 coins you get interviewed
for the internal magazine
• …

26. A practical approach
Not just financial benefits, but
mostly recognition

27. A practical approach
Be generous in the coin exchange
to create a winning and aligned
culture.

28. References
• http://www.danpink.com/books/drive/ , Drive from Daniel H.
Pink
• http://www.management30.com/ , Management 3.0 book &
courses from Jurgen Appelo
• http://techcrunch.com/2009/08/05/other-companies-should-have-
to-read-this-internal-netflix-presentation/ , Netflix HR
internal presentation