1.  APTMetrics, Inc. Tuning Up Your Performance Management Process Presented by: Robert E. Lewis, Ph.D. Christina Norris-Watts, Ph.D.

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6. 5 1.Drive PM from the top of the organization 2.Develop a “real time” PM process 3.Use job-related metrics and evaluation standards 4.Implement processes that are consistent, transparent, and enforceable 5.Deliver PM outcomes aligned with organizational objectives Five Key Steps

7. 6 1. Drive PM from the Top of the Organization Ensure executive commitment to top performance is clear and consistent by… Communicating relentlessly the company’s vision and objectives and relating this to everyday performance Holding executives to the same PM process standards as others Communicating performance standards and the value of strong PM Valuing what is accomplished as well as how it is accomplished Coaching direct reports to hold them accountable for the same standards

8. 7 Was our PM system developed with executive input and buy-in? Do we have to convince our executives to execute the PM process? Do we do it for them? Do our executives and senior managers emphasize the need for strong performance management on a regular basis? Are executives setting a good example in PM for managers (and managers for supervisors)? What do our employees say about why we conduct PM? Questions

9. 8 2. Develop a “Real-Time” PM Process Make PM relevant by aligning it with the work to be done and the pace of the organization Accomplish this by: Encouraging conversations so employees and their managers are clear regarding how work will be accomplished Driving managers to give feedback when it counts—during project review meetings and before/after critical or significant events Incorporating project dependencies into goals so they can be tracked and goals/objectives remain relevant Ensuring goals are aligned throughout the organization

10. 9 Do our employees seem to understand how they should meet their goals? Do we tell them how they can be good company citizens? How often to our employees really get feedback? Do they get it when it most matters? Or only on the PM schedule? Do people feel cheated by our PM process because goals aren’t changed when the business changes? Is our PM process supporting the pace at which the business moves? Questions

11. 10 Document performance outcomes/goals in the key work activities and the knowledge, skills, and abilities required to perform work Ensure metrics are job related by: Performing work analyses to ensure key activities and job requirements are documented and woven into performance management Giving clear behavioral guidance to demonstrate how goals should be accomplished and promote other organizational objectives (e.g., teamwork) Analyzing PM metrics and results frequently to ensure decisions that are based on PM (promotion, salaries, nomination to a high potential pool) are valid and fair 3. Use Job-Related Performance Metrics

12. 11 Ongoing Monitoring Helps Ensure Job- Relatedness Adverse Impact Consistent Administration Changes in the Job Changes in Organizational Goals Be willing to review/revise/revalidate metrics

13. 12 Questions Do we select, train, and appraise employees on a related set of dimensions? Or do we interview them on dimensions that never get raised again? If we had to justify our PM goals and processes in response to a lawsuit, could we do it? Have we taken steps to validate our PM process and ratings? Do I trust the PM ratings, or do I discount them when decisions need to be made? Do employees tell us they are rated on dimensions that are unrelated to their work? That are too subjective or change from year to year without apparent reason?

14. 13 4. Implement Processes That Are… …consistent, transparent, and enforceable by… Ensuring PM rules are simple, clear, and easy to execute Training managers on how to appraise performance and holding them accountable for long-term as well as short-term effectiveness Developing and enforcing a process for addressing grievances Giving employees voice in the system

15. 14 Do we repeatedly have to train people on the process or follow up to make sure it is executed? Do employees talk about the “curve” or the “matrix” when we don’t reveal it? What about “hidden” ratings like “potential”? Do employees think the system is fair? Do they complain that their manager holds them to a higher standard than others? Do I know which managers and supervisors produce strong talent in the organization? Does our performance management and reward system deliver strong data and development? Am I setting a good example by focusing on the performance and development of my direct reports? On a daily/weekly basis? Questions

16. 15 5. Deliver PM Evaluations Aligned with Individual and Organizational Outcomes Clearly linking PM evaluations to outcomes gives employees confidence in the PM process Accomplish this by: Ensuring consistent and fair ratings via a calibration process Requiring managers to justify ratings with a short written narrative Giving feedback in person Tying evaluations to development plans that are tracked and tied to work activities

17. 16 Are executives/managers challenged when they give suspect performance ratings? Is there a structure and culture that supports this? How many people tell me they don’t get feedback? Are we too focused on the administrative part of PM and not sufficiently on the feedback and development part? Am I confident we’re tracking and building key skill sets? Or do development plans lay dormant from year to year? Are we using PM to drive organizationally important goals? Or is it completely independent? Questions

18. 17 1.Tune up your PM process so it is meaningful PM is detested often because it is disconnected from daily work. 2.Technology helps but so does simplicity There are systems that can automate performance management and analysis but much can be done with well thought out spreadsheets. 3.The biggest hurdle is the one you can influence the most (and do so with the least cost) It’s creating a culture that values performance management. When executives drive PM from the top of the organization, by word and deed, they begin to create a culture that truly values high performance. Summary

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