The document discusses the shortcomings of performance management in the financial services sector, noting that a significant number of employees are unaware of organizational values and believe poor behaviors are rewarded. It emphasizes the need for effective goal setting that cascades from senior management, with a focus on behaviors and values rather than solely on financial targets. Recommendations include engaging senior leaders, improving communication about performance reviews, and separating discussions of bonuses from development opportunities.

1. Stop the
JDI
manager..
..Need
STRATEGIC
Goals
..Deal with
UNDER
PERFORMANCE
..All about the
‘HOW’
SMART
BLAH
Values
– EEK!
Financial Services
2014
Time to tackle
Performance
Management?
What works and what is
just BLAH – some evidence
Conversation
PLEEZE..
Copyright 3C Associates Ltd | info@3cperform.co.uk | T: +44 (0) 1491 411 544

2. Says Who?
Good or BLAH ?
BLAH - SMART goal training:
the managers have already
done it
GOOD – employees owning
performance reviews
BLAH – ‘How To’ TEXT
based documents: no-one
reads them
GOOD – online video quick
talks & tips from real people
BLAH - value judgment of
VALUES: what’ does being
‘excellent’ at COURAGE/
HONESTY etc. mean?
GOOD – Frequency
assessment of behaviours:
how often I am Courageous/
Honest etc. makes sense
Performance Management is under-performing
65% of staff
UNAWARE
of
organisation
values
One third
of staff
believe
bad
behaviour
rewarded
Reviews
too focused
on
operations
Performance
ratings not
fit for
purpose
We interviewed senior HR professionals in Banking, Insurance
and Pensions businesses. We reviewed the academic literature
and analysed the 2013 YouGov Survey.
Overwhelming view that in the financial sector performance
management is under-performing, alongside huge pressure from
regulatory bodies to re-design incentives to encourage better
behaviours and reduce corporate risk
Nor do Performance Reviews deliver for individual employees –
with feedback showing a widespread belief that poor
behaviours are ignored if the target numbers have been met.
Indeed, poor behaviour is thought to be rewarded if it is seen to
deliver results, however short term, and whatever the risk.
Copyright 3C Associates Ltd | info@3cperform.co.uk | T: +44 (0) 1491 411 544

3. The Financial Service organisations most positive about goal or objective setting are those
with a tightly managed process, that is completed in a 4-6 week period, and is purposefully
cascaded from senior managers down. Those least happy with goal setting took 4 months or
more to complete the process, focused almost exclusively on financial targets, and did not
cascade goals consistently from the top.
It takes
TIME
Most managers:
1) understand SMART
Goals, but don’t write them
2) know behaviour impacts
output, but struggle for
meaningful measures of
behaviour
Need to
Understand
STRATEGY
HR in Financial Services
makes a difference when it
steps beyond ‘training
provider’ and into business
facilitator
Cascade
from ABOVE
HARD
WORK
Goal or
OWN Goal?
FS organisations setting
objectives around
behaviour raise awareness
of company values
Facilitating goal or objective setting
means: engaging with senior
leaders; leading development of
generic goals from strategy, and
creating effective, practical
behaviour measures for managers
to use.
Copyright 3C Associates Ltd | info@3cperform.co.uk | T: +44 (0) 1491 411 544

4. 43% of banks and 26% of investment & insurance organisations
have tried to change Performance Management to reward
behaviour linked to values and ethics
Keep Values
Simple
Behaviour and
Bonus
gadgga
B#L@!%KS
Give Positive
Examples
If it’s not OK
SAY SO!
Make poor
behaviour
HURT
FS serious about change give
50% of bonuses based on
behaviour - but many staff still
don’t believe this happens in
practice.
“It may take a generation
to change the banking
culture” Anthony Jenkins,
CEO Barclays plc
Copyright 3C Associates Ltd | info@3cperform.co.uk | T: +44 (0) 1491 411 544

5. SYSTEMS
Many of the HR teams in FS are waiting for fully
integrated HR suites – the evidence says this could be
a long time coming. An easy to use, online PM tool
could make a big difference fast.
Great systems do not mean great performance
management, but weak or non-existent systems
undermine the process and the credibility of the HR
function.
VALUES 4 ALL
Show you mean it
40% of FS front line staff believe a
greater focus on ethical behaviour in ALL
training would make a real difference to
culture change
Don’t Wait for Godot
Bonus ≠ Coaching
The Full Monty Story
FS organisations report too many review conversations
focus on a bonus discussion and not on development. Many
managers still think money = motivation
If you want the full story, or case study of how we helped
other FS organisations tackle performance management –
you know what to do – CALL 3C on 01491 411 544
Good practice separates discussion of bonus from
development and training opportunities
This infographic is based on..
Best practice provides managers with ‘safe environments’ to
practise development conversations, and give constructive,
effective feedback
1-2-1 HRD
interviews
In FS
YouGov
survey
2013
3C Case
evidence
Published
Research
Copyright 3C Associates Ltd | info@3cperform.co.uk | T: +44 (0) 1491 411 544

6. What to do ?
3C make performance reviews and appraisals work for everyone.
We have a proven programme and methodology that combines:
• Engaging Senior Leaders
• Putting Managers at the heart of performance management
• Enabling everyone to take ownership of their performance
It’s a whole company approach, tailored to your situation (you may be
starting from scratch or on a good to great process).
Our specialist expertise and advice underpins and informs all our
programmes. To find out more about our Financial Services expertise, and
how we could make reviews and appraisals more effective for you, call us on
01491 411 544
Copyright 3C Associates Ltd | info@3cperform.co.uk | T: +44 (0) 1491 411 544