The document discusses modernizing performance management systems by moving away from traditional annual reviews and fixed ratings. It suggests that reviews should provide ongoing feedback, focus on development over weaknesses, and include metrics aligned with organizational strategy. Regular check-ins and 360-degree reviews are recommended to improve communication and motivation. Rewards should recognize lasting improvements rather than just effort. Hiring and developing talent is also important.

1. Bring Your Performance Management System Into the 21st Century Presented by David Harding

2. “ Great leaders are never satisfied with current levels of performance. They constantly strive for higher and higher levels of achievement.” - Donna Harrison

3. “ Hiring, retaining, and developing great people is the biggest challenge and single greatest key to the success of any business.” - Scott McNealy CEO, Sun Microsystems

4. “ Great employees naturally search out, join, and stay with organizations that give them compelling reasons to commit their hearts and souls.” - Jim Harris author of Finding and Keeping Great Employees

5. “ If at first you don’t succeed, try again. Then quit. There is no sense in making a fool of yourself.” - W.C. Fields

6. “ No executive has ever suffered because his people were strong and effective.” - Peter Drucker

7. “ A strategy without metrics is just a wish. And metrics that are not aligned with strategy are a waste of time.” - E. Powell

8. “ The danger for Corporate America is that employee disconnect saps productivity.” Business Week

9. “ Our culture is our competitive advantage.” - Mike Smith CEO, Land’s End

10. “ Where there is no vision, the people perish.” - Proverbs 29:18

11. Strategy Based Performance Management Values Vision Commitments Initiatives Metrics Improve performance Clear accountabilities, aligned effort

12. Values Financial security Integrity Personal growth Responsibility Leadership Communication Honesty

13. Vision “ An effective vision provides guidance for the organization. True direction for an organization is born with a vision.” - John Maxwell

14. Vision: A sense of where you are going, a more or less, intuitively defined direction.

15. Commitments Guaranteed on-time delivery (or it’s free) Estimates within 24 hours Color proofs in 24 hours Order entry in 2 hours, preflight within 2 hours, and jobs planned within 4 hours Eliminate duplicate processes Provide opportunities for personal growth

16. Initiatives / Strategies Conduct employee survey Wage study of local industry Leadership training for managers Client survey Implement stochastic screening Improve integrity of press check schedules Study duplicity of accounting practices

17. Metrics Financial stability – EBITDA, pretax profit, days to bill, days-sales-outstanding, alteration collections, productivity, efficiency. Employee commitment – employee survey, employee turnover Quality – spoilage, ticket accuracy, bad plates to press, bad proofs to clients, on-time delivery Market position – client retention, sales growth, estimate hit ratio, client survey

18. Metrics Graphs are the best way to show performance results

19. Performance Measures How well do your performance measures: Translate strategies into a concrete plan? Fully reflect what you care about? Drive improvements in how work is performed? Include internal and external benchmarks?

20. The Problem 67% of employees cannot strongly agree with the statement, “ I know what is expected of me at work.” Up until 20 years ago, most organizations were highly authoritarian. #1 reason people leave a job is because they don’t feel appreciated. 65% of Americans say they do not get any recognition in the workplace.

21. The Problem Ratio should be 5 positives to 1 negative Scientists have found that people who work for bad bosses have increased blood pressure and increase the risk of a stroke by 33% 22 million workers in the United States are actively disengaged

22. Traditional Performance Reviews Fixated with weakness Don’t happen often enough, so they are a waste of time Not predictable Use “average”, “meets expectations”, as the barometer Too subjective They should contain no surprises Most managers tend to rate employees high

23. Fixated with Weakness Report card… English – A Social Studies – A Biology – C Algebra – F

24. Fixated with Weakness Commonly agreed upon words for great behavior often have negative connotation From the American Psychological Association: There have been 40,000 studies on depression, but only 40 on the subject of joy, happiness, or fulfillment

25. Inaccurate Performance Review + Pay Increase = Decreased Motivation Inaccurate Performance Review + No Pay Increase = Decreased Motivation No Performance Review + No Pay Increase = Decreased Motivation No Performance Review + Pay Increase = Decreased Motivation Accurate Performance Review + Pay Increase = Motivation Accurate Performance Review + No Pay Increase = Motivation

26. 2004 Employee Survey My supervisor gives me feedback on the work I do, what I do well, and where I need to improve. (46.1%) (68%) My supervisor takes an interest in helping me develop. (50.6%) (70.3%) I believe I get the training I need to do a good job. (58%) (62.4%) I believe that this company does a good job of hiring people. (45.5%) (48%)

27. Managers The immediate manager is more important than any employee-focused culture Make managers accountable Spend more time with the best people Define the right outcomes and let each person figure out how to get there Help managers get organized

28. The Performance Review

29. The Performance Review The annual review Quarterly review Mini-monthly interview 360-degree review Peer review

30. The Performance Review Career discovery Performance scorecards Job turnover Occupational half-life Link performance to raises or bonuses

31. Performance Appraisal Comments “ When she opens her mouth, it is only to change feet.” “ Do not breed from this man.” “ He sets low personal standards and then constantly fails to achieve them.” “ This person is depriving a village somewhere of an idiot.” “ It takes him 1 ½ hours to watch 60 Minutes .”

32. Performance Appraisal Comments “ The wheel is turning, but the mouse is dead.” “ If you stand close to him you can hear the sea.” “ Some drink from the fountain of knowledge – he only gargled.” “ If you gave him a penny for his thoughts, you would get change.”

33. Rewards Overuse Based on effort Is the change lasting? Do they fix the problem? Contests Departmental rewards What if employees are doing okay?

34. Hiring How good are your recruiting efforts? When we promote someone, are we raising the talent level of our managers? What kind of people will be our future leaders? Are we training our best people?

35. Hiring Have a pre-employment instrument to measure talent “ Interview hard, manage easy” Interview 365 days a year References Employee interviews

36. Suggested Reading Punished by Rewards by Alfie Kohn Finding and Keeping Great Employees by Jim Harris Ph.D. First Break All The Rules by Marcus Buckingham Built to Last by James C. Collins & Jerry I. Porras

37. Suggested Reading The Five Dysfunctions of a Team by Patrick Lencioni The Five Temptations of a CEO by Patrick Lencioni The Four Obsessions of an Extraordinary Executive by Patrick Lencioni Death by Meeting by Patrick Lencioni The On Purpose Business by Kevin W. McCarthy