Another model to team appraisals


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Discover why classic appraisals systems are getting outdated. A new model is being applied in organizations, strongly linked to agile management.

Another model to team appraisals

  1. 1. A different model for team appraisals Fernando Palomo García November 2013
  2. 2. Why traditional models suck They are a distant system of control, not a system of engagement
  3. 3. Why traditional models suck They foster competition amongst members instead of collaboration
  4. 4. Why traditional models suck Top-to-down , 1 to 1. Leader to follower
  5. 5. Why traditional models suck Focused in COMPLIANCE rather than COLLABORATION
  6. 6. Why traditional models suck Appraisals don’t help conveying corporate values, their only focus is economic ( bonuses, salary upgrades... )
  7. 7. Why traditional models suck Already identified by Deming* ( author of the Plan-Do-Check-Act cycle ) as one of the 7 deadly diseases of any organization
  8. 8. Another model The knowledge era: people are well prepared, reaching job satisfaction requires: • Mastery • Autonomy • Purpose “When it comes to intellectual activity, money doesn’t work as motivation booster” Daniel H. Pink, ‘DRIVE’
  9. 9. Another model No more monetary bonuses linked to individual performance. Ensure everyone in the company feels well paid, lucky to be here. “Pay high enough salaries to take the money off the table, so people can focus on their job” Daniel H. Pink, DRIVE :
  10. 10. Another model Every member must be engaged and feel responsible to educate, integrate and help the rest of members
  11. 11. Another model Pay your employees what they deserve. Based on: • What the employee could get elsewhere • What we would have to spend to replace him • What we would be willing to pay to keep him in his job
  12. 12. Another model Evaluations should be used to educate people in the organization values.
  13. 13. Another model A global bonus based on the organization results is welcomed, but NOT mandatory. Percentage should be fixed and based on employee salary.
  14. 14. Another model Peers, not managers, decide who gets rewarded. Rewards must not be exclusionary.
  15. 15. Another model Education is a continuous topic, not a 6 / 12 months matter.
  16. 16. Another model All peers must choose their team members. The best compromise comes from our own decisions.
  17. 17. A practical approach The organization discovers its own values – Courage – Openness – Technical Excellence – Quality –…
  18. 18. A practical approach The members list daily actions that demonstrate commitment to the values • E.g. Openness: – When I asked for feedback on my last task, the other person answered me honestly even though it felt uncomfortable. – When I asked about my situation within the team, my manager didn’t hide his concerns. – …
  19. 19. A practical approach This list is alive and maintained continuously
  20. 20. A practical approach The team creates “Value coins” • Courage coin • Openness coin •…
  21. 21. A practical approach Every member is given a certain amount of coins periodically. The shorter the period, the better.
  22. 22. A practical approach Every member gives coins to whomever sticks to the values: – If I see somebody does a good action demonstrating she sticks to “openness”, I will pay her a coin of “openness”.
  23. 23. A practical approach Teams agree on the money paid to a member.
  24. 24. A practical approach Organizational managers evaluate the team members periodically, assessing their alignment to the values based on the amount of collected coins.
  25. 25. A practical approach Members receive benefits based on how many coins they have received: • Per 5 “courage” coins you get a ticket for an extreme sport activity • Per 5 “openness” coins you get a massage • Per 20 coins in the same month you get half day off • Per 60 coins covering all different values in a quarter you get your name in any of our products • Per 2 consecutive quarters with 60 coins you get interviewed for the internal magazine • …
  26. 26. A practical approach Not just financial benefits, but mostly recognition
  27. 27. A practical approach Be generous in the coin exchange to create a winning and aligned culture.
  28. 28. References • , Drive from Daniel H. Pink • , Management 3.0 book & courses from Jurgen Appelo • , Netflix HR internal presentation