PERFORMANCE MANAGEMENT How does your organization measure up?
How does your organization measure up?
Measure the effectiveness of changes and learn lessons
to drive continuous improvement
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
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
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.
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
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
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
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
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,
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
Identify the extent of process consistency
throughout the organization.
Our range of process audits include:
Performance Management Health Check
From an organizational holistic
Monitor Pulse Web-based PM Survey
Collects multiple individual
Monitor Pulse™ Audit Includes use of
the above, plus stakeholder interviews
and focus groups.
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
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.
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 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.
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
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
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
activities, and development.
How Pilat Can Help - Planning
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
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
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
Our training modules cover the following
Direction setting and sharing
Role clarification – job
Managing individual and team
Output goal setting and alignment
Development goal setting and
Defining measures, standards and
Monitoring & Measuring Performance
Measuring and recording performance
Creating a performance portfolio
How Pilat Can Help - Skills Development
Enabling & Enhancing Performance
Assessing & Evaluating Performance
Enhancing performance assessments
Rewarding & Recognising Performance
Positive Performance Management.
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.
At the time of publishing, Pilat has delivered 5
workshops with 55 senior leaders in total. All 5
workshops have been sponsored by an
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.
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
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.