SGIN2013 - Battling the bell curve in an Agile enterprise


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SGIN2013 - Battling the bell curve in an Agile enterprise

  1. 1. Battling The Bell Curve In An Agile Enterprise Low Performers Middle Performers High Performers
  2. 2. • What? o Retrospective o Pros and cons o What Else? • What Not? o Rank Down o Sell new o No Solution Setting Expectations
  3. 3. Year End Appraisals
  4. 4. Performance Appraisals
  5. 5. Forced Ranking & Bell Curve For Performance Appraisal
  6. 6. History FORCED RANKING 20 - 70 - 10 first used in 1990s Jack Welch suggested that forced ranking helped grow GE's revenues to $130 billion in 2000 from $70 billion in 1995 Geography 60% of Fortune 500 companies doing forced rankings Institute for Corporate Productivity (i4cp) in 2011 But it believed that companies kept the game and changed the name Rank or Yank Distribution system Up Or Out Stack Ranking Talent Management Process Leadership Assessment Procedure Pay for Performance 2005-2006
  7. 7. Science Maths Why Forced Ranking ? Why Forced Distribution ? It aligns employees in accordance with pre-assigned performance distribution %’s Dick Grote in his book says “… in the right company at the right time, forced ranking creates a more productive workforce where top talent is appreciated, rewarded, and retained” Exceptional Exceeds Expectations Meets Expectations Needs Improvement Unsatisfactory
  8. 8. English What does it actually mean? • Rather than a criterion based tool, it is more about distinguishing individuals by ranking them against their peers
  9. 9. Questions On Using Bell Curve What does an Agile Enterprise Value Most? If the whole team consistently delivers well, do we still rank only 10% - 20% as top performers In agile enterprise, where product failures can happen faster, can performance failures be also detected early? Is it still fair when teams are accountable & responsible already? …but do we need to link performance measurement to increment and bonus?
  10. 10. Impacts Of Using Bell Curve Exercise
  11. 11. How To Battle It Out Low Performers Middle Performers High Performers
  12. 12. Let’s Be Agile • Use the very principles of Agile o Short term goals o Short cycles of delivery o Continuous Improvement o Retrospectives o Measure Of Progress o Servant-”Leadership” Model o Focus shift from Individuals to teams
  13. 13. Change For Organizations • Decide what is valuable o For example it could be o Business Value To Customer and/or Business Value to Org • Have short term goals, build them into larger goals o For example, Goals tied to delivering working product • All goals need to be measurable • Focus On Self-Organizing aspect o For example, how individuals group together to form teams and perform • Derive feedback out of frequent retrospectives to o Teams o Individuals
  14. 14. Change For Managers • Managers to coach than dictate • Foster a culture of self-organizing in the teams by o encouraging decision making o Retrospection • Have high-ended questions in the review o For example o How could I have done better in the team? o How we could deliver the product with more quality? • Engage early • Have a culture of trust and respect (ref. Paul L Marciano’s book) • Empower – by providing training, resources & opportunities • Set expectations in collaboration with teams
  15. 15. A Sample Questionnaire • I regularly ask employees how I can help them in being more successful o As team and as individuals • Any more => Exercise
  16. 16. Change For Individuals In Teams • Utilize retrospectives • Turn into coaches for peers or other team-members • Learn and encourage learning • Pro-active than reactive • Any more…..???
  17. 17. Recommended Use Of Bell Curve 20-70-10 Do use forced ranking if you can But only to remove non-agilists from the team
  18. 18. Conclusion • Overhaul – Think of abolishing performance reviews • Capitalize principles of Agile to build performance measures • Separate pay/compensation from performance • Methods like 360 degree feedback are redundant • Trust & Respect
  19. 19. Questions
  20. 20. Thank You