1. © U PSTREAM A CADEMY 2013 1 W ORLD C LASS T RAINING: G ETTING Y OUR F IRM O N T RACK P RESENTED BY S AM M. A LLRED, F OUNDER & D IRECTOR O F U PSTREAM A CADEMY C ONDUCTING E FFECTIVE P ERFORMANCE E VALUATIONS P RESENTED BY T IM B ARTZ D IRECTOR OF U PSTREAM A CADEMY

2. © U PSTREAM A CADEMY 2013 P RESENTATION R OADMAP 1.Performance evaluations within our profession 2.Establishing a vision for the performance evaluation process 3.Keys to meaningful performance reviews 4.ELA participants answer key questions Email questions to timb@upstreamacademy.com 2

3. © U PSTREAM A CADEMY 2013  P ERFORMANCE E VALUATIONS W ITHIN O UR P ROFESSION 3

4. © U PSTREAM A CADEMY 2013 One of the biggest issues we face in our profession is retaining and developing our best people. Most of our retention processes are mediocre at best. Most firms have a level 4 or 5 performance review process. O BSERVATION #1 4

5. © U PSTREAM A CADEMY 2013 The annual performance appraisal is often the best opportunity to give individuals meaningful direction for their careers. Unfortunately, most who participate in the process fail to see the significance of the appraisal. O BSERVATION #2 5

6. © U PSTREAM A CADEMY 2013 The performance appraisal process lacks credibility with leaders and/or employees and, for many, becomes a meaningless paper chase and waste of time. 6

7. © U PSTREAM A CADEMY 2013 Most firms have failed to elevate the importance of performance reviews in the minds of firm members. As a result, the focus of the appraisal process is far more on compliance than on really helping individuals advance in their careers. O BSERVATION #3 7

8. © U PSTREAM A CADEMY 2013 Those being evaluated often experience anxiety as they ponder what this year’s appraisal will bring, while those doing the evaluating frequently see the task as drudgery and one more item on an already lengthy “To Do” list. 8

9. © U PSTREAM A CADEMY 2013 Because appraisers see this exercise as simply an item to accomplish and check off their task list, they approach the appraisal in a perfunctory way. As a result, they fail to provide useful information to the coach and the individual they are appraising. 9

10. © U PSTREAM A CADEMY 2013 The tendency of many firms to view the annual performance appraisal as an event rather than as an integral part of a larger process of performance management is a significant barrier to improvement. O BSERVATION #4 10

11. © U PSTREAM A CADEMY 2013 11 The appraisal review meeting is often seen as the end of the review process rather than the starting point for setting and accomplish- ing meaningful career goals. O BSERVATION #5

12. © U PSTREAM A CADEMY 2013 12 We are often not as open and honest as we need to be to really help individuals in their careers. “The trouble with most of us is that we would rather be ruined by praise than saved by criticism.” Norman Vincent Peale O BSERVATION #6

13. © U PSTREAM A CADEMY 2013 13 “Many firms are too ‘nice’ for their own good. In the false spirit of partnership, they neglect confronting moderate performance until it turns into a performance failure, thus precipitating a crisis.” David H. Maister

14. © U PSTREAM A CADEMY 2013 14 There is often a belief that the firm’s appraisal tool is completely objective or that using a different tool will solve every problem. Firms may also feel that the same tool/methodology can be used for everyone. O BSERVATION #7

15. © U PSTREAM A CADEMY 2013 15 Too many firms lack clear, written standards of performance. As a result, individuals are usually evaluated against each other rather than firm performance standards. O BSERVATION #8

16. © U PSTREAM A CADEMY 2013 16  E STABLISHING A V ISION F OR T HE P ERFORMANCE E VALUATION P ROCESS

17. © U PSTREAM A CADEMY 2013 17 As you work to improve your performance review process, what should your vision be? Consider the goal of developing a level 8 review process that has the characteristics and benefits listed on the next three slides.

18. © U PSTREAM A CADEMY 2013 18 Employees sincerely look forward to the performance review process, believing it really helps them progress in their careers More emphasis is placed on maximizing strengths, with less emphasis on correcting weaknesses P ERFORMANCE R EVIEW V ISION

19. © U PSTREAM A CADEMY 2013 19 The evaluations are candid and honest and show a sincere desire to help the employee move forward in his/her career The performance review process leads to a higher level of trust and unity throughout the firm P ERFORMANCE R EVIEW V ISION

20. © U PSTREAM A CADEMY 2013 20 The performance review process becomes the foundation for setting and accomplishing meaningful personal performance goals This process helps to raise the performance tide across the firm P ERFORMANCE R EVIEW V ISION

21. © U PSTREAM A CADEMY 2013 21  K EYS T O M EANINGFUL P ERFORMANCE R EVIEWS

22. © U PSTREAM A CADEMY 2013 22 K EYS T O M EANINGFUL A PPRAISALS 1.Develop a vision for improving your firm’s performance review process. Get buy-in from all key stakeholders. The key is to recognize the review as a significant opportunity to help employees in their careers. Accept that providing something of value will require openness and honesty.

23. © U PSTREAM A CADEMY 2013 23 2.Develop firm-wide standards of performance. These standards should be clearly defined and measurable and can cover things such as: a.Timesheets, billings and collections b.Client service standards c.Teamwork and firm unity d.Adherence to core values e.Continuous self improvement K EYS T O M EANINGFUL A PPRAISALS

24. © U PSTREAM A CADEMY 2013 24 3.Prepare properly for the appraisal meeting by going over the employee’s job description, reviewing the firm’s performance measures, telling the employee what he/she needs to do to prepare, and ensuring physical arrangements for the meeting are appropriate. K EYS T O M EANINGFUL A PPRAISALS

25. © U PSTREAM A CADEMY 2013 25 4.Employees should prepare for the review meeting by: a.Identifying three strengths and three areas for improvement b.Reporting and evaluating their results compared to stated goals for the last 12-month period c.Suggesting possible career goals for the next 12 months K EYS T O M EANINGFUL A PPRAISALS

26. © U PSTREAM A CADEMY 2013 26 5.Improve the quality of the feedback received for each employee. Provide criteria, direction and training on how to provide constructive feedback. Consider this phase a work in process until the quality of the feedback substan- tially improves. K EYS T O M EANINGFUL A PPRAISALS

27. © U PSTREAM A CADEMY 2013 27 6.Provide training to all employees on the value of receiving constructive feedback. K EYS T O M EANINGFUL A PPRAISALS

28. © U PSTREAM A CADEMY 2013 28 7.Use the performance review process to identify, discuss and renew long- term career aspirations. One of the key goals for each review is written career action plans with specific trimester goals. K EYS T O M EANINGFUL A PPRAISALS

29. © U PSTREAM A CADEMY 2013 29 Marcus Buckingham explains there are two flawed assumptions about people made by organizations. 1.Each person can learn to be competent in almost anything. 2.Each person’s greatest room for growth is in his or her areas of greatest weakness. pg. 7 Now, Discover Your Strengths

30. © U PSTREAM A CADEMY 2013 30 8.Remember that people will make more progress by growing their strengths than by trying to fix their weaknesses. When helping someone mitigate areas of weakness to meet minimum performance standards, be sure to suggest how those improvements might be accomplished. K EYS T O M EANINGFUL A PPRAISALS

31. © U PSTREAM A CADEMY 2013 31 9.Don’t use the appraisal to surprise an employee with a new performance issue. 10.In the appraisal meeting ask, “What things have made your job more difficult, and what do we need to do to help you become more productive and further your career?” and then listen to the answer. K EYS T O M EANINGFUL A PPRAISALS

32. © U PSTREAM A CADEMY 2013  ELA P ARTICIPANTS A NSWER K EY Q UESTIONS 32

33. © U PSTREAM A CADEMY 2013 We have asked a number of ELA participants to respond to several questions regarding conducting effective performance evaluations. Please know that response to these questions is not limited to those participants who have been contacted in advance. 33

34. © U PSTREAM A CADEMY 2013 What do you feel are the barriers to improving the performance evaluation process? Q UESTION 34

35. © U PSTREAM A CADEMY 2013 In your mind, what are three things that could be done to improve the performance evaluation process? Q UESTION 35

36. © U PSTREAM A CADEMY 2013 What are the messages that all employees need to hear regarding performance evaluations? Q UESTION 36

37. © U PSTREAM A CADEMY 2013 What kind of training is needed for those who are asked to appraise others in the firm? Q UESTION 37

38. © U PSTREAM A CADEMY 2013 Thank You! timb@upstreamacademy.com 38