The document summarizes the history and evolution of performance management from the 1940s to present. It discusses the shift from annual performance appraisals to a more continuous process focused on engagement, coaching and development. Emerging trends highlighted include simplifying processes, providing ongoing feedback instead of annual reviews, agile goal setting, and eliminating forced rankings. Case studies are presented of companies like Adobe, Microsoft and GE that have implemented aspects of the new approach like frequent check-ins, continuous feedback via apps, and outcome-based rewards. The conclusion discusses benefits like increased productivity and engagement but also challenges of implementation and ensuring effective manager coaching.

1. Researched and presented by
ABDULLAH ALAKILI
December , 2017

2. The Agenda
1- Performance Management
history .
3- Emerging Trend in
Performance Management
2- Leading –Traditional
performance management
process.
4- Conclusion

3. 1940s - 1950s
• Productivity register.
• personality-related
note taken( register)
• Foundation of
Formal annual
appraisal. Work
performance +
personality related
traits
1960s - 1970s
• Feedback effect get
more attention.
• development needs of
low and average
performance.
• Establishment of the
term of :
Performance
Management
From Performance Appraisal (PA)
led by Accountability
To Performance development(PD)
led by continues Engagement &
Coaching
• Popularization of
Forced ranking (rank
and yank) of
workforce method .
1980s
• MBO-Management By
Objective influenced the
practice and led to
establishment of
Performance
Management that we
Know now.
1990-2005
• Automated PM.
• Widespread of 360-
degree feedback.
• More research on
competency based
assessment.
2006-2010
Talen management
• Attract/identified
,develop , retain .
• succession planning
Increase the Popularity of
use the Online assessment
tools.(psychometric ).
2010-2016
 re-thinking about
traditional
Performance
management.
 6% of fortune fourteen
100 responded.
• Simplifying process .
• Ongoing feedback
instead of annual.
• Agile goal
management .
• Enhance employee
engagement.
• Implement learning
management system
(Online training )
• Eliminating forced
ranking
1- Performance Management history

4. 2- Leading –Traditional performance management process.
• Talent pool.
• Incentive and
compensation.
• Rule change or
elimination or coaching
and training

5. *survey by Deloitte
** CEB
“The process is too heavy and complex, too costly for the outcome , And the outcome is not great. we’re going to get rid of it.
Not 100 percent, but we’re going to get rid of probably 90 percent of what we did in the past”
Pierre Nanterme , Accenture CEO,2014
.
95%
managers
dissatisfied with
their performance
reviews**
75%
do not drives
employee
engagement nor
high performance*
74%
Employees
believe that it
demotivated and
has a lot Bias in
Rating
(unfairness)**
90%
HR leaders say
the process
doesn’t even
yield accurate
information.**
3- Emerging Trend in Performance Management (drivers of re-thinking )
1. Executives need a process that driving more effectiveness and business value. RIO
2. Performance management becomes increasingly bureaucratic and viewed as burdensome, costly, and low value by
employees and managers.
3. research shows individual performance management ratings have little correlation with business unit performance.
4. Re-engineering the process to ensure ongoing performance discussion.
5. Strengthen Goals management to be transparent , relative and Agile .Additionally, progress has to be
reviewed more often in order to provide coaching and prevent serious performance issues .
6. Forced ranking and Comparison with others is demotivated : although it may Improved Productivity and
Profitability, assess in Quick Identification of Top Performers , but it is proven by time it leads unhealthy

6. Adobe abolishes Annual Performance
Review
Source: Business Insider
……………………………………………………………………………………………………………………………………………………………
………………………………………………………………………
2012
Microsoft axes its controversial
employee ranking system
Source: theverge.com
2013
In a Big Move, Accenture will get rid of
Annual Performance Reviews and
Rankings
Source: washingtonpost.com
2014
General Electric dismisses its
controversial employee ranking
Source: theverge.com
2015
Deloitte is Redesigning Performance
Management
Source: HBR
2015
3- Emerging Trend in Performance Management (change leaders )

7. 3- Emerging Trend in Performance Management ( common actions)
Abolish or ease the Wight of end of year
performance reviews: more emphasis on
utilizing a highly sophisticated analytical
tools , eliminating or reducing rating and
forced ranking practices.(system should
collect and analysing data of performance
improvement activates )
1. Facilitate and enable all
above processes by
technology ,
Implementing Internal
social media network :
most of previous practices
team engagement
Agile Near-term objectives :rather
than annual objectives. Setting and
reviewing objectives regularly, rather
than once or twice a year.
Shorter cycle of performance review

8. 3- Emerging Trend in Performance Management (sample screen of app)
2017 Joined the trend.
Link to video
 Making Enterprise Social Work
 Powerful Goal Management
 Continuous Performance Management
 Accurate Performance Assessments
 360 + powerful assessment & analytical tool.

9. 3- Emerging Trend in Performance Management ( case Study)
- RIC ANALYTICAL DATA ,
MORE OBJECTIVITY OF
PERFORMANCE EVALUATION.
-ACCENTURE CONNECTED
LEARNING
Five regional learning centers
More than 24,000 online courses
and 900 learning boards
More than 50 connected
classrooms
More than 100 Professional
Communities
• Self-assessment of your
strengths.
• Know what expected of you.
• Define and share your priorities.
• Get regular Feedback , add or
adjust your priorities.
• Team engagement survey.
• Share and review Team
Engagement report.
• Share priorities and
contribution with team.

10. 3- Conclusion
• Most of announced results of this new trend are promising ( increased productivity , employees satisfaction about practice , decreased
of Employee turnover / attrition rates , direct improvement in engagement )
• The challenge is not the implementation of process and technology , the real challenge is how to convince your people to utilize it and
create and maintained benefits out of them , it is a mission of promoting continuous performance management cutler and to affect
individual mindset ( 365 days instead of 360 degree) ,
• Furthermore Implementing of the This practice is costly and terms of technology and the needs of effective training for Managers to
provide an adequate ,effective , constrictive coaching and feedback .(Accenture trained 100.000 leaders and supervisors for 1 day
session) .
I believe that , this phrase is one of the best to conclude with . According to Stanford Professor, Bob Sutton :
“[N]o matter what system your company uses, regular, frank, and constructive conversations and feedback
between managers and their people, and among peers, is the hallmark of a culture and a company that
practices effective performance management, and that such exchanges can happen under both traditional
and newer systems.“

11. Appendix 1 :Cases study of implementing new PM principles
Technology
Industry
High rate of Attrition
Challenge
In 2012, Adobe moved from annual performance review to frequent “check-ins” wherein managers are
required to provide employees targeted coaching , on-going feedback rather than “rear-view” mirror
approach on their performance and discuss development plans. The aim is to provide real-time feedback ,
support or critique.
To acclimatize the managers to the new system , they were provided training in how to give and receive
feedback, through lectures ,role-playing etc.
Formal written reviews and ratings have been done away with unless it is an employment law in countries
like China – even in such situations , employees are categorized as either ‘performing’ or ‘non-performing’.
Once a year managers are required to make adjustment in compensation of employees as per the Merit
budget allocated to them. The merit budget differ based on roles , geographies and position in range.Each
manager who receives a budget is held accountable.
Adobe ensures that managers are doing a good job at both the frequency and consistency of the check-ins
by conducting regular short ‘pulse surveys’ throughout the year. It gives employees an opportunity to share
their honest feedback as to how things are going
Solution
Voluntary attrition dropped by 30% , Stock rose by 68%, revenues are up by 4.4%(Source : How Adobe
Redesigned Performance Management – Bersin by Deloitte)Result

12. Cases study of implementing new PM principles
Technology & Computer Software
Industry
Internal survey revealed high level of dissatisfaction among the employees for the then prevalent
performance appraisal system of “Stack ranking”. According to Microsoft’s UK HR director “It was having a
negative impact on collaboration , risk-taking and innovation
Challenge
In November,2013 Microsoft replaced their Annual “Stack ranking” with a holistic model that manages,
evaluates, and rewards employees for business impact. The main aim of this change was to shift the focus
from evaluating employees to helping them continually improve. To support the new performance
management approach, microsoft retired ratings, curve and reviews. HR developed Connect, a software
tool that enables employees and managers to keep track of the engagements known as ‘connect
conversations’ between them, around performance, business impact, and career. The frequency of connect
conversations is minimum three or four times a year and the focus is to cover what the employee is doing
well as well as areas for improvement.
Connect conversations are not part of reward conversations. The rewards allocation has shifted from
‘inputs’ (activity based) to ‘outputs’ (outcome based).
For reward determination there is a separate discussion that happens at year-end and no rating is used for
the same. HR has developed a ‘Manage Rewards tool’ for managers that enables them to evaluate
employees for increase in salary , bonus , rewards , promotions and employee’s impact on the business –
while staying within budget.
Solution
Overall satisfaction for the new performance appraisal system increased by 15% for employees and 21%
for Managers from 2012 to 2014Result

13. Cases study of implementing new PM principles
Conglomerate
Industry
Retention of employees, fostering innovation , reduce time to market, more customer-driven
Challenge
GE has scrapped it’s annual performance review and opted for a system of continuous feedback via an
app. PD@GE – “performance development @ GE”
Each employee is assigned short-term goals and managers are expected to have regular discussions, called
“touchpoints” on progress towards achievement of the set goals.
Employees can request for feedback at any time though a feature called “insights”. The app. forces
employees to categorize feedback in one of two forms – to continue doing something or to consider
changing something.(Source: GE performance review strategy )
Solution
In pilot implementation in turbomachinery solution for oil and Gas , it is reported the productivity of
team fivefold .Result