Use a new way to motivate the employees in an Agile environment, to replace the traditional top-down performance appraisal

1. E T H A N H U A N G
Scrum Alliance Certified Scrum Trainer (CST ®), Agile Coach
Let’s Abandon
Performance
Appraisal

2. Let’s Abandon Performance Appraisal
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cn.linkedin.com/in/ethancst
me@ethanhuang.net
Ethan Huang

3. Let’s Abandon Performance Appraisal
PerformanceAppraisalDOESN’TWork
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4. Let’s Abandon Performance Appraisal
BecausePeopleAreNOTResources
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5. Let’s Abandon Performance Appraisal
Management1.0 AssumesPeopleAreFOOLS
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6. Let’s Abandon Performance Appraisal
Management2.0AssumesPeopleAre
MotivatedByMONEY
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7. Let’s Abandon Performance Appraisal
ATypicalPerformanceAppraisalProcess:
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1. TheBOSSsetsthegoals
2. TheBOSSreviewstheoutcomes
3. TheBOSSdecidesthecompensationbaseonoutcomes

8. Let’s Abandon Performance Appraisal
MajorityOfTheEmployeesAreFeeling
UNDERPAID/UNFAIR/UNHAPPY
RegardlessTheResult
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9. Let’s Abandon Performance Appraisal
BecauseKnowledgeWorkersWorkFor
THEIROWNHAPPINESS
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WhenTheyAreAfter
TheHigherLevelOf
MASLOWNEEDS

11. Let’s Abandon Performance Appraisal
KnowledgeWorkersCannotBeRewarded
ByExtrinsicFactors,
ButCanBeMotivatedByIntrinsicFactors
(Management3.0)
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Managing for Happiness, Jurgen Appelo

12. Let’s Abandon Performance Appraisal
CHAMPFROGS:
The10INTRINSICFACTORS
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Managing for Happiness, Jurgen Appelo

13. Let’s Abandon Performance Appraisal
Curiosity: I have plenty of things to investigate and to think about.
Honor: I feel proud that my personal values are reflected in how I work.
Acceptance: The people around me approve of what I do and who I am.
Mastery: My work challenges my competence but it is still within my abilities.
Power: There’s enough room for me to influence what happens around me.
Freedom: I am independent of others with my work and my responsibilities.
Relatedness: I have good social contacts with the people in my work.
Order: There are enough rules and policies for a stable environment.
Goal: My purpose in life is reflected in the work that I do.
Status: My position is good, and recognized by the people who work with me.
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14. Let’s Abandon Performance Appraisal
3+ToolsToREPLACEPerformanceAppraisal
WhichAreCHEAPERAndMoreEFFECTIVE
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Kudo Card: Peer Appreciation
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Receiver + Why
Sender
Emotional Appreciation
A small amount from the
sender’s OWN POCKET
e.g., $20 Amazon Gift Card

16. Let’s Abandon Performance Appraisal
1. It’sfrompeers,notfromboss
2. It’swellhand-made,makepeoplefeeltouched
3. It’sarealappreciation:asmallmoneyfromthesender
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Honor, Acceptance, Relatedness, Order, Status

17. Let’s Abandon Performance Appraisal
The Master Team League
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1. Individualplayersteamupastheirowndecision
2. Differentroundsfordifferenttopicstochampion
3. Winnersgetrecognizedbythecompanyandalsotheemployees
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Curiosity, Honor, Acceptance, Mastery, Power, Freedom, Relatedness, Order, Goal, Status

19. Let’s Abandon Performance Appraisal
The Merit Money Rewarding
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20. Let’s Abandon Performance Appraisal
1. Ithappensbasedonaregularfrequency,e.g.,everymonth.
2. Eachemployeegetssomefixednumberofmeritmoney
3. Theygivetheirmeritmoneytoanyoneintheorganization
4. Theycannotgivemeritmoneytothemselves,neithercantheyhold
5. Thecompanydecidebonusorstockoptionsbasedonmeritmoney
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Curiosity, Honor, Acceptance, Mastery, Power, Freedom, Relatedness, Order, Goal, Status

21. Let’s Abandon Performance Appraisal
Put them together: Kudo + Master Team League + Merit Money
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Gaming The Company

22. Let’s Abandon Performance Appraisal
Gaming The Company
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ThebestactivitytoleverageallCHAMPFROGSisvideogames
Sowhynotmakingtheentireofficelifeavideogame?
Designthe“game”tosimulatethedevelopment/contributionpath,
andencouragethe“gamers”todevelopskillsandcontributetothe
teamtolevelupandwinbadges.

23. Let’s Abandon Performance Appraisal
1. Twomodes:individualandteam;
2. Tworoutes:RegularEpisodes(mappingtotheday-to-daywork)
andChallenges(particularlearningobjectives);
3. Tworewardingsystems:Levels-upandBadges;
4. Twovisualrecognition:physicalbadgesandleaderboard(honor
wall)intheoffice.
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Game Design

24. Let’s Abandon Performance Appraisal
Andalotmoreyettobepracticed…
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25. Let’s Abandon Performance Appraisal
Thank You!
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EthanHuang
me@ethanhuang.net