The document discusses trends in performance management. It notes that continuous change is constant in most organizations today. Performance management is highlighted as the cornerstone of organizational development and leadership development for dealing with change. Key trends discussed include moving away from outdated practices like forced rankings and bell curves, adopting ongoing feedback and technology to digitize processes, and ensuring performance management has leadership sponsorship and cascades goals throughout the organization to drive a culture of performance. Coaching and 360-degree feedback are also highlighted as important trends.

1. The success formula
for high performance
organizations
By
Nermine Faltas
VP of Human Capital

2. In most Organizations &
various industries, we
are always in a state of
continuous change.
Change is the only constant

3. Aggressive
growth plans
Operational
Changes
Mergers
& acquisitions
Continuous Change can be..
Downsizing Economicalchanges
Management
Change

4. HR role in achieving Business results
Organizational
Goals
HR Goals
Business
Results

5. HR has to be in the driving seat
-Decision making
-Aligning HR strategy with Org.
direction
-HR driving business results
HR and Business results in Synergy

6. Performance is a Corner stone in change
Performance
Management
LeadershipTalent
Management
Employee EngagementCulture
• Leaders as agent of
change
• Cascading vision &
Goals
• Team Alignment
• Ongoing Feedback
• Talent development
• Competencies Dev.
• Job Rotation
• Career path
• Succession planning

7. We see performance
management as the center
of organizational
development and leadership
development.
Performance Management is the corner stone

8. Performance Management trends
Performance
Ranking is
outdated
Decline of Bell
Curve
Ongoing Feedback Adopting
Technology

9. Forced rankings is outdated
Forced employee ranking based
on classes as: A,B and C.
Employee evaluation based on
goals and responsibilities.
Companies adopting evaluation process:

10. Forced rankings is outdated
“The art of leadership is not to spend your time
measuring, evaluating, It’s all about selecting the
person. And if you believe you selected the right person,
then you give that person the freedom, the authority,
the delegation to innovate and to lead with some very
simple measure the art of leadership is not to spend your
time measuring, evaluating. ”
- Pierre Nanterme, Accenture CEO.

11. Bell curve is declining
Bell curve is a rigid tool. Implementing 360 reviews.
Companies implementing 360 evaluation: Source:

12. Bell curve is declining
“Our senior leaders clearly see the value of this process,
up to and including our CEO. Having such senior level
support for our program is terrific. As a result, we get
response rates consistently above 90%, which really
demonstrate our employees’ and leaders’ commitment,
involvement and engagement in the process. ”
- Global Organization Development team, Pepsico on 360 Feedback

13. Ongoing feedback
• Annual performance appraisal.
• Recent effect.
• Ongoing feedback on projects.
• Incremental effect.
Companies adopting on-going feedback: Source:

14. Ongoing feedback
“Adobe instituted “check-ins”—ongoing discussions
between managers and employees to set expectations,
offer feedback on performance, and recognize strong
work. The initial impact was profound: Adobe benefited
from a 30 percent reduction in voluntary turnover in a
highly competitive talent environment. ”
- Global Human Capital Trends 2015, Deloitte University Press

15. Adopting Technology
• Paper work
• Time consuming
• Digitizing the whole
performance management
process
Companies adopting on-going Performance management technologies:

16. Adopting Technology
“Technology now makes transparent goal setting and agile
performance management easier than ever. A host of new
tools permits employees to share their goals, provide
feedback and recognition to others online, and even
“gamify” the performance management process to make
it more productive and useful. ”
- Global Human Capital Trends 2015, Deloitte University Press

17. Success Formula for PM
Management
Sponsorship
Culture of
Performance
Cascading
Goals
Leadership
Education on
Performance
Performance
Pay
360° Feedback Coaching

18. Market data:
Source:
63%
of companies suggest
manager feedback is the
key driver of change.
56%
of companies are
concerned that
managers don’t have
the necessary skills to
support an effective
performance
management process.
39%
think that line managers
don’t see the value in
the performance
management process.
26%
of companies cite low
levels of senior manager
support as a barrier to
effective performance
management.

19. Senior Management Sponsorship
Start with Commitment & Support
from senior Leadership:
Without Management Sponsorship
Performance management initiative or
any change management initiative
wont work..
Management

20. Culture of Performance
• PM is not a yearly event
• Numbers and targets Visibility.
• Objectives Settings from the top.
• Continuous Feedback and talks
about objectives.
Performance-Driven

21. Performance management is not an annual event
Kill your performance ratings.”
– Harvard Business Review
“Microsoft kills its hated stack ranking.”
– Bloomberg
“Reinventing performance management.”
– Deloitte
“getting rid of annual reviews and rankings.”
– Accenture
Source:

22. Cascading Goals
• Be aware of corporate goals.
• Implemented from the top of the
organization to all layers of the Org.
• First line and middle management
Engagement.
• Increases alignment on results with
all organization.
Reversed-Engineered

23. Leadership Education on Performance
Status
meetings
1-on-1
meeting
Development
Plan
Setting
Objectives

24. Pay for Performance
All first line employees as well as
sales and target-oriented
personnel gets under performance
pay.
Debatable!! To be done across

25. 360° Feedback
Different feedback from
- Peers
- Parallel Department
- Subordinates and different
levels down.

26. Coaching
Moving from evaluation-based
approach to coaching and
development approach.
Coaching is an OD
trend in 2016

27. Evolution of Performance management:
Source:
Out-dated
Traditional
Transformative
• Manager efforts focused on
compliance and “ticking the box”
for all employees.
• Focus on goal-setting and year-end
assessment.
• One-size-fits-all communication.
• Manager efforts focused
on getting the right rating
for the year.
• Structured process
involving goal-setting,
mid-year review, year-end
calibration and
performance assessment.
• Event-based manager and
employee communication.
• Manager efforts focused
on coaching employees to
achieve fullest potential .
• Continuous dialogue that
matches the cadence of
work in place of annual
process.
• 360°, crowd-sourced,
peer-to-peer, robust
feedback from anywhere
and anytime.