Read this out first: “Studies have shown a dramatic increase in both worker and business performance when an organization effectively sets and closely ties individual employee goals to the company’s overall strategy”. So how does an MD or CEO usually align the business behind his business plan or strategy? Mostly through word of mouth and by talking to his direct reports about what is to be achieved. Objectives and goals can then be included in a paper review or goal setting exercise but how efficient is that and how easy is it for both the MD and the direct report to access the information and make adjustments to it over the year?
No more chasing. No more trying to track people with spreadsheets. All you do is every now and then run a quick report to see who is done, who is behind and who needs to be “gently” reminded to get a move on. How many of you have diligently gathered in all your performance reviews and then either had to yourself enter everything into an excel spreadsheet (great use of your time by the way) or had an administrator do it. Then you look at the info and you need to be an excel guru to get the information you want out of it and create graphs to impress your senior management with. Most online software comes with reporting tools at a click of a button. The old stick it in a draw or file and never to be seen again until next years review is a standard line in performance reviews. In today's information age, people want access to all their stuff online. People want to buy online, talk online, share info online and so why should HR processes be any different. If anything, the Gen Yr’s love this and the ability to access it from any internet connection. How SMART are your people’s goals? In all my years in HR and working with performance management, I have rarely seen more than a handful of people in an organisation who really get how to set SMART goals. Most people have heard the terminology so many times they don’t actually stop and think about what it means to set a SMART goal. Your online software must be able to guide people in setting measurable goals for each department and kind of work done in your business or you need to have someone helping employee and manager define the goals well at the start. As you all know, the road to somewhere leads to a town called nowhere. What you measure can be achieved.What you cant measure cant be improved.
Risk of losing can be remedied by creating exports of peoples goals in Excel every few months. And confirming with the provider what their disaster recovery plans are and back up should the system go down. Risk of people not engaging can be tackled by promoting it internally and always focusing on what’s in it for me (WIIFM) By allowing managers to access and see the goals of other departments, your company can greatly reduce goal redundancies and conflicts throughout your organization
Simms was predominantly a memory business focusing on the Kingston range The HR processes were mostly manual and paper based. Simms is recognised as an Investor in People (UK accreditation) June 2006 – brought on board as a consultant to assist with the acquisition and to develop values and culture. Nearly two years later, Simms had doubled in revenue and employee numbers and now needed a more consistent and efficient manner of setting objectives and managing performance
SMART goals – having said that – the system we chose goes a long way to helping people think along those lines by providing examples for each area of the business of SMART goals and actual metrics that can be used or adapted You need to be aware of those in the organisation who are a bit shy of technology or change and keep offering your time and support to sit with them and help them set things up correctly. You also need to stay on top of who is using the system and who isnt. Success Factors is great for this because you can run a report in seconds on who has not entered any goals yet or finished their part of the review.
You can do a wonderful training session/presentation but your follow up with those who are struggling or are not buying in will be key – people like to have someone on the ground they can ask questions of. As always, it is essential that senior management, particularly the MD or CEO is fully behind the system and is an example for using it because once he or she has set goals and started cascading and using the tool, everyone else will follow. It pays to be aware of any other recent systems which have been introduced to employees just to time and be sensitive to too many new things at once Front of mind means you need to keep people thinking about logging into the system on a regular basis, in that sense this is a very new way to do performance management because its more regular feedback on goals. Having said that it still just fits in with your normal performance review cycle and should be seamless in that sense.
I dare say a little management training is required here on how to convey constructive criticism to employees.
Online Performance Management Presentation July 2009
Presented by David Fox Principal The HR Practise Online Performance Management Strategy Paperless Business Partner Transparency
What are the comments you have heard employees or managers say about performance reviews? Its too cumbersome It’s just another HR paper pushing exercise Its not relevant to what I do My manager doesn’t take it seriously Its not clear to me how it links to my salary or rewards It’s a joke in our company
What is the current state of play? <ul><li>“ A mere 7% of employees today fully understand their company’s business strategies and what’s expected of them in order to help achieve company goals.” </li></ul><ul><li>Robert S. Kaplan and David P. Norton, “The Strategy-Focused Organization,” Harvard Business School Press, 2001 from the creators of the Balanced Scorecard </li></ul>“ Studies have shown a dramatic increase in both worker and business performance when an organization effectively sets and closely ties individual employee goals to the company’s overall strategy”.
What are some of the typical problems with most paper based reviews? <ul><li>The need to chase paper and signatures </li></ul><ul><li>Having to manually enter results and be an excel guru to make sense of them so you can present some reports and graphs . </li></ul><ul><li>Harder to access the information in detail once the reviews are completed. Cant track changes in real time. </li></ul><ul><li>The old “pull it out of a drawer trick” </li></ul><ul><li>How SMART are the goals? </li></ul>
The Advantages The Disadvantages <ul><li>Mostly paper-less </li></ul><ul><li>Ease of recording and maintaining records </li></ul><ul><li>Ease of entering information with help from a library of useful comments (not all offer this) </li></ul><ul><li>Links your values, competencies and goals together in one place </li></ul><ul><li>Additional features such as 360 reviews and performance feedback from others </li></ul><ul><li>Transparency & Cascading of goals across the business </li></ul><ul><li>Risk of losing information if supplier’s computer systems go down </li></ul><ul><li>Risk of people not engaging with it and using it </li></ul><ul><li>Possible negative sentiment such as “big brother” is watching </li></ul><ul><li>Generic written comments must be tempered with actual feedback </li></ul><ul><li>May seem a lengthier process at first </li></ul>Online Performance Management
Review of Vendors for Online Performance Management July 2008 Simms International is a leading supplier of IT products and services. Since our beginnings in 1995, we have established ourselves as a trusted member of the IT channel, forging relationships with world-leading vendors June 2006 $30m business with 30 employees August 2006 Attains Apple License by acquiring KH Distribution and overnight becomes 60 employees and $70m business June 2008 Grown to a $120m business with 75 employees September 2008 Launch of Success Factors December 2008 All goals loaded and reviewed in the system May 2009 Training for all employees and managers on how to do Online Performance Reviews June/July 2009 First Online Performance Reviews begin
Integrating our values into performance reviews
“ Tying in Goal Setting/reviews and associated performance reviews online is a huge bonus especially now that a lot of management tools have gone digital”. “ With proactive goal setting and respective achievement tracking, staff feel a sense of personal development and satisfaction – and this will often lead to better productivity”. “… is a great tool to keep track of information and allow us to update changes and progress on our goals/tasks. It also allow us to cascade tasks to the team members and ensure they are on track at all times”. “ Overall this is great tool to use but it can be time consuming if we need to update progress on a regular basis”. “ I like it and see the benefits to us and the business from utilising this tool. One needs to confidently invest time into fully understanding it to fully reap the rewards. Good solid training is necessary”. “ The system works if the company implements it from the top” “ It makes goal setting and tracking within a team very simple. (especially the “water falling features”) “ It makes performance reviews much easier and less admin intensive” “ The greatest benefit I have seen is that we now have a mechanism to capture and align company goals and employee goals. The ability to monitor progress through such transparency is invaluable” Danny Moore - Managing Director “ It did seem a bit time consuming to do the reviews, however that is a teething problem and people will make it their own and will become quicker at it in time” – Damien Spence - Finance Director Comments from Directors Comments from Employees Comments from Managers
Lessons Learnt <ul><li>Setting the system up correctly takes a bit of time – someone needs to be dedicated to keeping it on track or it will drag out. Having said that we launched in 3 months at Simms. </li></ul><ul><li>Merging existing competencies and gaining buy-in for any new ones requires working with managers and employees to develop and agree on them as they will be measured against these competencies </li></ul><ul><li>Getting people to think about SMART goals is probably the hardest part - regardless of paper or online </li></ul>
More Lessons Learnt … <ul><li>Follow up and support to those who may struggle </li></ul><ul><li>CEO/MD and senior management buy-in and use of the system </li></ul><ul><li>Timing – any other new systems being introduced or already introduced recently </li></ul><ul><li>Front of mind – gentle reminders to use the system and update goals </li></ul><ul><li>Be aware that the system does not become a replacement for managers meeting with employees </li></ul>
Q & A "Since my last report, this employee has reached rock bottom and has started to dig." Some actual performance management comments (apparently): "Works well when under constant supervision and cornered like a rat in a trap." "This employee should go far - and the sooner he starts, the better."