1. MANAGING PERFORMANCE A business psychology perspective by Michael Wellin BA, MSc, C.Psychol.

2. MANAGING PERFORMANCE TOPICS Setting targets Communicating to get buy in Identification of poor performers Acting fairly if improved targets not met

3. SETTING TARGETS

4. PERFORMANCE MANAGEMENT OR MANAGING PERFORMANCE? MANAGING PERFORMANCE Continuous process About assessment, development & relationship Involves joint manager & employee understanding Relates to business goals & employee commitment Focuses on behaviours which achieve outputs & results PERFORMANCE MANAGEMENT Annual / biannual discussion Mainly about manager assessing employee Manager does it to the employee Relate to organisation business cycle Increasingly based on competencies

5. SMART OBJECTIVES Specific Measurable Achievable Realistic Time specific DELEGATION Analyse the Task Analyse the Person, Explain Reasons for Delegating Monitoring Process Review & Follow up SETTING TARGETS

6. LATEST THINKING ABOUT MAXIMISING PERFORMANCE TRADITIONAL FOCUS ON DEVELOPING WEAKNESSES Identify what person good at & not so good at Focus development on improving areas where not so good Overcoming weaknesses will increase performance ‘First Break All the Rules’ Marcus Buckingham & Curt Coffman NEW FOCUS ON MAXIMISING STRENGTHS Identify what person good at & not so good at Focus development on making best use of strengths Putting people in jobs which use their strengths will increase enjoyment, commitment and performance

7. A SINGLE OBJECTIVE CAN TAKE MANY DIFFERENT SHAPES Increase revenues from 5 major clients Increase revenues from major clients by 20% Increase profitability from major clients by 10% Increase major client satisfaction with our services by 5% as measured by annual client survey Formulate & execute key account plans for major clients Fulfil role as ‘Trusted Business Advisor’ in all major clients Introduce one new service to each major client

8. COMMUNICATING TO GET BUY IN

9. THE COMMITMENT HIERARCHY WHAT IS EXPECTED FROM ME? Do I know what is expected from me? Do I have the equipment and material I need? AM I VALUED HERE? Does someone value me? Are my efforts appreciated? DO I BELONG HERE? Do my values match other people’s & the organisations? CAN I USE & GROW MY TALENT? Can I apply and grow more of my talents here? LEVEL 4 LEVEL 3 LEVEL 2 LEVEL 1 Traditional Performance Management Managing Understanding & Performance

10. GIVING FEEDBACK IN COACHING STYLE MD “Should I tell this individual why I am taking them off the account following poor client feedback ?” Tell it as it is, including how the client feels & ask the individual: What do you think might have caused the client to react as they have? What recent communications/interactions have you had with the client that might have caused them to react as they have? Could there be anything about your manner/style that they might have reacted to? Have you ever had anything similar? What have you learnt from this experience for the company/you to avoid future repetitions?

11. THE PERSONAL DEAL WHAT YOU EXPECT FROM ME? WHAT I EXPECT FROM YOU? WHAT I GIVE YOU? WHAT YOU GIVE ME? YOUME

12. IDENTIFICATION OF POOR PERFORMERS

13. WHAT OBJECTIVES ARE THE ‘WHAT’ OF BUSINESS PERFORMANCE THEY DESCRIBE TARGETED RESULTS AND OUTPUTS e.g. install the new IT system by 21.09.08 e.g. achieve high levels of customer satisfaction & repeat business OBJECTIVES & COMPETENCIES TOGETHER DETERMINE OUR PERFORMANCE HOW COMPETENCIES ARE THE ‘HOW’ OF BUSINESS PERFORMANCE THEY DESCRIBE THE BEHAVIOURS PEOPLE USE TO ACHIEVE RESULTS e.g. create and use a project plan (for implementing the new IT system) e.g. listen, empathise with the customer’s issues & respond to them

14. EVALUATION ERRORS Speed of decision making Comparing Individuals to each other, not the performance standards Lack of objective data over time Personal biases – stereotyping, excessive harshness/leniency, halo effect, projection

15. OBJECTIVE ASSESSMENT STEPS OBSERVE What the candidate says & does and it’s effects RECORD Your written record of what the candidate said and outcomes CLASSIFY The competency within which the candidate’s behaviour falls EVALUATE Your rating of the candidate’s behaviour and performance

16. ACTING FAIRLY IF IMPROVED TARGETS ARE NOT MET

17. REASONS FOR PERFORMANCE GAP Personal ability e.g. not have the competency or knowledge Manager performance – e.g. not provided sufficient direction or resources Environment forces – e.g. department barriers, change in market demand Personal circumstances – e.g. family illness Motivation & commitment – e.g. stress, breach of psychological contract

18. FOUR INSPIRATIONAL LEADER QUALITIES REVEAL WEAKNESSES Show who they are, own up to some flaw to establish trust SENSING Sniff out the environment, collect/interpret soft data TOUGH EMPATHY Empathise fiercely, balance respect for individual and the task BE DIFFERENT Deliberately use difference to keep social difference Robert Goffee & Gareth Jones

19. DELIVERING TOUGH MESSAGES Plan the message Tell it as it is Give the reasons Do not be drawn into an argument Show empathy Be optimistic & show respect Summarise actions

20. BENEFITS OF MANAGING PERFORMANCE Increase understanding Identify talent Empower and support Develop talent Increase performance

21. TO FIND OUT MORE Contact Michael Wellin at Business Transformation Ltd. E – mike@businesstransform.co.ukmike@businesstransform.co.uk W- www.businesstransform.co.ukwww.businesstransform.co.uk T - +44 (0) 20 7278 6006 M- +44 (0) 7966 081192