Performance Management

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Performance Management Keys to Making It Work!
Presented by Alan Todd, Chairman Raj
Ramachandran, Performance Management Research Lead
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The Presenters

• Alan Todd - Chairman of Corporate University
  Xchange
• Over the past 20 years, he has won many learning
  industry awards and has spoken at conferences
  around the world on workforce development
  strategies. While serving as a thought leader in
  the learning industry, Mr. Todd founded and
  served as CEO for two successful global learning
  companies.  Prior to joining CUX, Mr. Todd was
  the Chairman and CEO of KnowledgePlanet, a
  company he founded in 1996 that helped launch the
  eLearning revolution. Mr. Todd led the company
  through mergers and acquisitions, expanded the
  user-base to 150 countries, and raised nearly
  100 million in private equity. Prior to
  KnowledgePlanet, Mr. Todd was the Chairman and
  CEO of KnowledgeSoft, a training company he
  founded in 1986 that was acquired by Staffmark -
  a 1.2 billion Information Technology company -
  in 1996.
• Raj Ramachandran - Performance Management
  Research Advisor for Corporate University Xchange
• Raj has over 10 years experience in learning and
  performance management, studying strategies and
  best practices in Global 2000 organizations
  including American Airlines, International Paper,
  Raytheon, Washington Mutual, and others. Prior to
  CUX, Raj was the learning and performance
  management practice lead for TPI, a global
  sourcing advisory firm. He has also served as a
  business process consultant for Accenture, IBM
  and PricewaterhouseCoopers.

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Agenda

• Performance Management Lifecycle
• Key Insight Areas in the Performance Management
  Lifecycle
• The Corporate University Xchange Performance
  Management Maturity Model
• Headlines Executives Speak out on Performance
  Management

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The Performance Management Study

• Released in May 2007
• 150 Organizations surveyed
• Average of 24,000 employees
• Conducted 15 qualitative interviews
• Large, global participants including

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Why Performance Management?

• Performance Management IS on the CEOs Agenda
• An opportunity for CLOs and Talent Management
  leaders to add critical value
• A powerful, strategic tool for transformation

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Key Insight Areas Performance
Management Lifecycle
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Goal Setting Keys to Success

• Cascading goals remain visible
• Improves alignment to strategy
• S.M.A.R.T. goals
• Balanced scorecard
• Hoshin planning

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Competency Management The How of Performance

• Established by organizations desired culture
• Drives career development
• Competency models are either purchased from an
  external provider or developed internally
• Key part of the performance rating process

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Culture Leaders Set the Example

• Alignment of organizational objectives
• Identifying and recognizing top performers
• Compensate high performance
• Disincentive low performance
• Identifying and removing poor performers
• Creating talent pools succession planning
  processes

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Employee Surveys Vital to the Performance
System

• Also known as employee satisfaction, climate or
  engagement surveys
• Tracks improvement in employee perception
• Decide where to focus additional training
• Correlate manager effectiveness employee
  loyalty
• Employee self-assessments are widely used
• Most important arbitar of fairness

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Coaching The Responsibility is On the Manager

• Objective is to grow and develop employees
• Requires regular, honest and open dialog between
  employees and their managers
• The quality of the conversation is the key to
  success
• Some companies are conducting spot checks
  providing immediate feedback

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Poll Question

• What type of rating scale does your organization
  currently use to evaluate employees?
• Likert scale (1 through 7 scale) or greater
  number
• Likert scale (1 through 5 scale)
• Likert scale (1 through 3 scale)
• In the process of changing the rating scale
• Other

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Ratings Multiple Strategies are Vital

• Absolute scales vary all over the map
• Matrix of performance vs. competencies
• Forced ranking processes have divided support
• High use of 360 degree feedback functionality
• A strategic requirement
• Informs compensation
• Rewards
• Succession planning
• Improvement plan

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Technology Nothing More Than an Enabler

• No dominant vendor
• Highly customized (and therefore homegrown)
• Buyers tend to focus on the automation of the
  employee assessment and appraisal process first

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Technology Tools for Performance?
N 120
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Poll Question

• What are the barriers to successfully implement a
  performance management program in your
  organization?
• Clear vision and communication from CEO and
  Senior leadership
• No or limited consequence for non-performance
  (tolerated in the organization)
• Managers and leaders are rewarded for developing
  their people
• Lack of consistent review and coaching processes
• Other

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Barriers To Success
N 630
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Continual Improvement
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Stage 0

• No Performance Management process in place
• Subjective opinions drive annual reviews
• No visibility of strategic plan
• Paper performance reviews stored in HR files

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Stage 1

• PM process implemented but inconsistent
• Goal statements written but disconnected
• Little or no quantitative measures in place
• Infrequent training on coaching
• No quality assessments of goal statements

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Stage 2

• Standard, enterprise-wide process
• Some steps automated with technology
• Visibility of metrics available at higher levels
• Managers can prioritize to 5 or 6 key goals
• Coaching dialog tracked but not assessed

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Stage 3

• PM process steps mastered and automated
• Clear visibility and alignment of objectives
• Technology integrated with learning
• Focus on improving quality of coaching
• PM drives other talent processes

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Stage 4

• Real time adjustments to individual performance
• Cultural shift towards improved performance
• Managers are empowered as barrier busters
• Ability to measure ROI of performance processes
• PM process feeds the execution quotient

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Headlines Executives Speak out on Performance
Management
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Thank You Questions/Comments?
Please join us for our next webinar Leadership
Development at Pfizer What Happens After Class
Wednesday, September 12, 2007 at 11 AM ET