Do annual performance reviews help mission-driven organizations succeed or are they just another administrative function that takes time away from more important things? We believe that a well designed system can provide positive feedback to employees helping them do a better job and create a stronger organization. But doing so in the proper setting, context, and manner is critical to carrying out successful performance reviews. We'll show you how during this 60-minute design strategy workshop.

1. Nonprofit Performance Management Design
Strategies
Julie Gallion & Dawn Taylor
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3. Today’s Speakers
Julie Gallion
Senior HR Consultant,
Nonprofit HR Solutions
Dawn Taylor
Director of Business
Development,
Nonprofit Staffing Solutions
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Sam Frank, Synthesis Partnership Hunt, Nonprofit Webinars

4. Nonprofit
Performance Management
Design Strategies
Julie Gallion, PHR
Senior HR Consultant
Nonprofit HR Solutions
jgallion@nonprofithr.com
Dawn Taylor, CSP
Director of Business Development
Nonprofit Staffing Solutions
dtaylor@nonprofithr.com

5. Agenda
Defining Performance Management
Performance Management System Components
Why Performance Management?
Developing a System
Ratings
– Advantages and Disadvantages
System Implementation
Legal Concerns
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6. Performance Management and Components
Environment and processes that ensure employees are enabled to be
productive in accomplishing the organization’s work
Key Components
– Job Description
– Orientation
– Performance Goals (the “What”)
– Competencies or Behaviors (the “How”)
– Ongoing Feedback
– Coaching (including course correction)
– Recognition and Rewards
– Career/Professional Development
– Assessment
– Performance Improvement
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7. Why Performance Management
Translation of Organizational Goals to Individual Activities
Clear Roadmap for Employee of Priorities and Direction
Documentation of Work Quality and Progress (including Termination
Issues)
Differentiation of High-potentials and Other Classifications
Compensation Decisions
Feedback Mechanism
Career Progression
Employee Needs
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8. Leadership Buy-in for Performance Management
Marketplace Best Practices
Past Successes (and Failures)
Linkage to other People Processes
Clear Overview of Change Management Processes
– Communication Plan
Use of Pilots and Staff Input
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9. DEVELOPING A SYSTEM
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10. Where to start
Know the Culture
– Level of the majority of the positions
– Competitive or Cooperative (Learning) environment
– What does the organization reward
Learn what Leadership is looking for in a system
Create a Staff Committee
– Staff committee will ensure buy-in from more of the staff if coordinated
well
– Committee should include employees of all levels and in all departments
– If over 10 people consider splitting into two groups
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11. Staff Committee
Share with the committee what your ED/President and Senior Staff want in
a system
Ask the committee what they like and don’t like about the current system
Allow the committee to discuss the benefits and drawbacks of identified
solutions/suggestions with minimal input from you
Share the system you create with the committee before you bring it to the
ED/President and Senior Staff for approval
Share any changes suggested by the Senior Staff with the Committee and
let them come up with a compromise. Have a good example/reasons for not
incorporating any ideas expressed during committee meetings
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12. Ratings
Types of rating systems
– 1-5
– Needs Improvement through Exceeds Expectations (no number or letters)
What is being rated
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13. Advantages and Disadvantages of Rating
Systems
Advantages Disadvantages
1-5 1-5
– Provides good structure around the – Temptation to give a higher score
salary increase system due to guilt about pay increase
related to score
– Enables supervisor to express the – Focus is on the grade not improving
level of their concerns or praise the skill
Needs Improvement to Exceeds Needs Improvement to Exceeds
Expectations Expectations
– Difficult to tie salary increases directly
– Focus is on improving rather than to performance review
their frustration over receiving a low
score
– No competition
– Employees do not get a sense of
failure
•Understand the culture before choosing your rating system
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14. Performance Review Form
Core Competency Ratings
Goals
Major Accomplishments
Overall Strengths
Areas for Improvement
Opportunities for Job Enrichment/Personal Development
Comments
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15. Core Competencies
Developing Core Competencies
– Based on culture
– Committee Input
– Senior Staff Input
Examples of Core Competencies
– Organizational Relationships and Communications
– Planning and Time Management
– Innovation and Change
– Decision Making and Judgment
– Professionalism
– Effectiveness and Efficiency
– Staff and Resource Management
Narrative
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16. Goals
SMART
– Specific
– Measureable
– Attainable
– Realistic
– Timely
Allow employees to suggest goals
Goals should drill down from organizational strategic plan. All employees
should be familiar with strategic plan
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17. Major Accomplishments, Overall Strengths,
Areas for Improvement, Opportunities,
Comments
Define a major accomplishment
List overall strengths
List areas for improvement
List any opportunities for promotion or lateral move and explain how to get
there
Comments-Supervisor and Employee
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18. Additional Forms
Self Review/Pre-Review form
Manager Review
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19. Legal Issues
“…it is almost inevitable that one or more elements of your
organization’s performance appraisal system will attract legal
scrutiny at some point in time. This likely scrutiny is particularly
worrisome when considering the potential for jury trials,
compensatory and punitive damages, and other burdens imposed
in discrimination cases under the Civil Rights Act of 1991.”
“CURRENT LEGAL ISSUES IN PERFORMANCE APPRAISAL”
Stanley B. Malos, J.D., Ph.D.
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20. Legal Issues Continued
Performance Management Systems should ensure consistency in
communications which is critical when trying to prove nondiscrimination
System should be able to prove to a court in a wrongful discharge case that
there have been performance issues, that those issues had been discussed
with the employee and the employee was given an opportunity to improve
Helps to ensure that all employees are treated similarly
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21. IMPLEMENTING A SYSTEM
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22. Effective Implementation Requires a
Thoughtful Approach that Engages all
Stakeholders
Communication
& Follow- Final
Buy-In Follow-Up Feedback
Training Through Customization
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23. Communication & Training
Ensure knowledge is shared
Ensure clarity/understanding
Discuss motives and intents
Discuss what will look different and what will be the same
Discuss the final impact on individuals
Define critical terms
Define timelines
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24. Buy-In
Ultimate goal is total buy-in – Realistic goal is total
understanding
Provide opportunity to raise/discuss concerns
Invite other perspectives
Follow-Up
Provide answers to questions (anticipate questions and have
answers ready)
Provide examples
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25. Follow-Through
Drive the process forward (consider a pilot or phase-in approach)
Ensure that results match what was communicated
Offer continual assistance and resources throughout initial implementation
Feedback
Provide opportunity/vehicle for initial participants to provide feedback
Send the message that candid feedback is truly desired
Allow anonymity
Distinguish between feedback on the process and its components vs.
dissatisfaction with appropriate results
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26. Final Customization & Institutionalization
Respond to all feedback
Make appropriate customizations based on lessons learned
Ensure that all critical features are maximized
Ensure that final outcomes move toward strategic business
objectives
Establish protocols
Make formal resources available (i.e., additional training,
advice & counsel, etc.)
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27. Nonprofit HR Solutions – Performance Management Program
Consulting
 Automating Performance Management
 360 Degree Surveys
 Key Features
– Library of over 350 competencies
– Fully customizable templates
– Automatic email notification of pending and past due reviews
– Goal management
– Ongoing feedback and documentation
– Statistical dashboard
 Nonprofit specific pricing
 Contact Julie or Dawn at 202/785-2060 for more details.
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28. Nonprofit HR Solutions
 About Us
– Nonprofit HR Solutions is the nation's only full-service consulting firm dedicated exclusively
to meeting the human resources needs of nonprofit organizations. Since 2000, Nonprofit HR
Solutions has worked exclusively with the nonprofit sector, generating results for
organizations supporting advocacy, health and human services, arts and culture, education,
the environment, faith-based missions and more.
For more information on Nonprofit HR Solutions, please call 202.785.2060 or visit
www.nonprofithr.com.
 Our Services
– HR Consulting & Outsourcing
– Executive Search
– Staffing
– The HR Cooperative
– Nonprofit Human Resources Conference (Oct 9-11, 2011)
– Nonprofit HR Symposia - San Diego (June 3, 2011)
– Nonprofit HR Symposia - Chicago (June 23, 2011)
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29. Find the listings for our current season of webinars
and register at
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Chris Dumas
Chris@NonprofitWebinars.com
707-812-1234
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