The death of the performance review
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Several well-known international companies such as Deliottes have abolished their performance appraisal system. Others such as the BBC in the UK have scrapped their ratings system. There is a distinct shift away from the performance appraisal of employees toward performance development. Is this a wise move?
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The death of the performance review
- 1. The death of the performance review Dr. Tim Baker tim@winnersatwork.com.au www.winnesatwork.com.au
- 2. Understand why performance reviews are outdated & ineffective Develop some strategies for shifting from appraisals to development Familiarise yourself with the process of the Five Conversations Framework
- 4. Some reflections … GE announced it was abolishing its "rank and yank" system, which assigns employees a performance score relative to their peers and results in the lowest percentile getting fired.
- 5. Accenture’s 330,000 employees are undergoing what CEO Pierre Nanterme has called a "massive revolution" in which timely, personalized employee feedback is replacing annual evaluations and rankings. Some reflections …
- 6. Microsoft’s overhaul of its own performance management process as a move in this direction. Some reflections …
- 7. As Laszlo Bock, SVP of People Operations at Google, recently wrote: “Performance management as practiced by most organizations has become a rule-based, bureaucratic process, existing as an end in itself rather than actually shaping performance. Employees hate it. Managers hate it. Even HR departments hate it.” Some reflections …
- 8. If we want employees working together, not competing with one another, towards achieving common goals removing ratings is a good starting point.
- 9. What’s Wrong With the Traditional Performance Appraisal? They are a costly exercise Appraisals can be destructive Appraisals are often a monologue rather than a dialogue The formality of the appraisal stifles discussion Appraisals are too infrequent Appraisals are an exercise in form-filling Appraisals are rarely followed up Most people find appraisals stressful
- 10. Survey on Performance Reviews …
- 11. Command & Control Adaptive coaching developing influencing collaborating problem solving
- 13. Myths about performance reviews Myth 1: Increasing individual performance increases organisational performance Myth 2: We need the performance review to objectively categorise people Myth 3: Managers are in the best position to make judgments about people's performance Myth 4: Performance reviews enhance employee performance Myth 5: Performance reviews are designed to help employees
- 14. Roles people play in organisations are more important than the jobs they do...
- 15. The Work People Do Job role Non-job roles Technical skills Team role Career role Innovation & Continuous Improvement role SOURCE: The End of the Performance Review Positive mental attitude & enthusiasm
- 17. The five conversations framework Date Topic Content Key Questions Month 1 Climate review Job satisfaction, morale and communication • How would you rate your current job satisfaction? • How would you rate morale? • How would you rate communication? Month 2 Strengths and talents Efficiently deploying strengths and talents • What are your strengths and talents? • How can these strengths and talents be used in your current and future roles in the organisation? Month 3 Opportunities for growth Improving performance and standards • Where are opportunities for improved performance? • How can I assist you to improve your performance? Month 4 Learning and development Support and growth • What skills would you like to learn? • What learning opportunities would you like to undertake? Month 5 Innovation and continuous improvement Ways and means to improve the efficiency and effectiveness of the business • What is the one way that you could improve your own working efficiency? • What is the one way that we can improve our team’s operations? Baker, T. (2013). The End of the Performance Review: A New Approach to Appraising Employee Performance
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- 20. Dr Tim Baker tim@winnersatwork.com.au www.winnersatwork.com.au 20% Discount plus postage
Editor's Notes
- My research of 1,200 HR managers identified the following eight shortcomings of the performance review.
- Jobs have been around since the Industrial revolution for 200 years. Taylor conceptualized a job as a clearly defined set of tasks to be done. These days work is more complex. The marketplace more uncertain. Employees play a significant number of roles in organizations beyong simply the technical role.
- This was a survey of 9,000 managers across 21 industry groups in six countries. You will notice that the top 10 job skills are non-job tasks.
- So those are the main barriers to communication. So how do we encourage more productive conversations and meaningful dialogue? You need a framework in place that promotes these conversations. I want to share with you two frameworks. Both of these frameworks can, and should be, recorded for reference. The first of this frameworks that we discuss in Conversations at Work is The Five Conversations Framework. Briefly describe the framework and the fact that some organisations are using this as a substitute for the traditional performance review.