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There are many suggestions dealing with Agile-friendly performance appraisals, which promise to rely on trust, honesty, respect, safety, and servant leadership. The Agile Manifesto does not address performance appraisal although it does generally mention regular and frequent feedback, which can also be applied to performance evaluation. Two related methods, Beyond Budgeting and Sociocracy, offer interesting approaches to agile performance review. In this session we want to present these two different performance appraisal approaches, how they're are supported by the values of BOSSA nova (short for Beyond Budgeting, Open Space, Sociocracy & Agile) and want to invite the participants of this workshop to discuss the synthesis of the two approaches.
This session looks at several real-world examples from actual companies including Accenture, Equinor, and Google.
The first principle of Beyond Budgeting asks to “engage and inspire people around bold and noble causes; not around short-term financial targets,” the eleventh principle advocates: “Evaluate performance holistically and with peer feedback for learning and development; not based on measurement only and not for rewards only.” Thus, the main strategy of Beyond Budgeting is to separate (financial) bonuses from performance evaluation and to use relative and not fixed targets as a foundation for the evaluation.
Sociocracy suggests holding 360 degree in-person meetings. The person being reviewed should request it when needed, not just on a rigid annual basis, and perhaps not just once in the year. In the 360 degree meeting, the organization itself can be critiqued in the review - “the way we organize is causing performance problems.” Similar to Beyond Budgeting there is a focus on the vision and mission of the specific department as well as the overall company as a source of inspiration and motivation. The output of the performance review meeting should be a development plan that the immediate group of supervision, peers, and subordinates consent to.
Based on BOSSA nova, we invite participants to dive into what Beyond Budgeting and Sociocracy combined offer for performance appraisals. Participants will take away insights that they can use in their organizations.