Part 9—Performance Management McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

One Minute Goal Setting One minute goal setting involves identifying three to five goals that are critical to success, and writing these on a single sheet of paper – 250 words or less

One Minute Praising One minute praising involves showing appreciation for effort and accomplishments. It is based on two ideas: People need feedback as a way of tracking and sustaining progress What gets rewarded gets repeated

One Minute Reprimand Correction is immediate One minute reprimand is saved for individuals who are trained and know what to do, but make mistakes. The one minute reprimand has four characteristics: Correction is immediate Correction focuses on behavior, not on the character of the person Correction is sincere The individual is encouraged

Four Major Areas of Job Performance Quantity Quality Timeliness Cost

Eight Principles for Setting Performance Objectives Performance objectives should be: Meaningful and in alignment Challenging, yet attainable Measurable Established for a specific time period Agreed upon by those doing the work and those in charge Flexible Written Considerate of the social dynamics of cooperation and competition

Ten Principles for Conducting Performance Reviews Performance reviews should: Include three steps: preparation, implementation, and follow-up Solve job problems and develop employee competence Be based on mutually agreed-upon objectives Be tailored to the performance objectives of each job Involve the employee in evaluating personal performance

Ten Principles for Conducting Performance Reviews Performance reviews should: Involve two-way communication Include a time schedule and physical setting conducive to employee development Involve supervisors actions consistent with words Include using multi-source evaluations for improving performance Avoid performance rating problems

Performance Management Strategies Dismiss before completion of probation Coach to improve work attitude Train to improve work performance Reward to show appreciation and reinforce morale and performance Poor Work Performance + Poor Work Attitude Good Work Performance + Poor Work Attitude Poor Work Performance + Good Work Attitude Good Work Performance + Good Work Attitude

The Performance Pyramid 1. Statesmanship The ability to work with and through other people 2. Entrepreneurship Achievement of Results 3. Innovation Ability to generate new and usable ideas Statesmanship (ability to work with and through other people) Entrepreneurship (achievement of results) Innovation (ability to generate new and usable ideas)

Four Principles of Good Human Relations Let people know where they stand Give credit where it is due Tell people as soon as possible about changes that will affect them Make best use of each person’s ability Statesmanship (ability to work with and through other people) Entrepreneurship (achievement of results) Innovation (ability to generate new and usable ideas)

Four Step Problem Solving Get the facts Weigh and decide Take Action Follow up Statesmanship (ability to work with and through other people) Entrepreneurship (achievement of results) Innovation (ability to generate new and usable ideas)

Tips for High Performance Coach Others to Succeed Pay attention to those “middle stars.” Avoid focusing only on the “super stars” and the “fallen stars.” Most people shine somewhere in the middle. Pay attention to the “middle stars.” Avoid the trap of focusing only on the “super stars” (those with exceptional performance) and the “fallen stars” (those with significant performance problems). Most people shine somewhere in the middle.

Tips for High Performance Spread the Sparkle Get enthused about others who are enthusiastic; it can snowball quickly. Recognize and reward those who help contribute to a culture of contagious enthusiasm. Get enthused about others who are enthusiastic – its contagious and can snowball quickly. Recognize and reward those who help contribute to a culture of contagious enthusiasm.

Tips for High Performance Address Deficiencies Pay attention when someone has a performance problem. Unaddressed deficiencies can have a negative effect on every member of your team. Pay attention when someone has a performance problem. Unaddressed deficiencies can have a negative effect on every member of your team. By dealing with performance issues as early as possible, you can prevent them from growing more serious…and more distasteful for both you and the individual to face.

MISSED OPPORTUNITY FOR GREATNESS Level 5 Executive Builds enduring greatness through a paradoxical combination of personal humility plus fierce resolve. MISSED OPPORTUNITY FOR GREATNESS Level 4 Effective Leader Catalyzes commitment to and vigorous pursuit of a clear and compelling vision; stimulates the group to high performance standards. Level 3 Competent Manager Organizes people and resources toward the effective and efficient pursuit of predetermined objectives. Level 2 Contributing Team Member Contributes to the achievement of group objectives; works effectively with others in a group setting. The Level 5 leader sits on top of a hierarchy of capabilities necessary for transforming an organization from good to great. What lies beneath are four other layers, each one appropriate in its own right, but none with the power of Level 5. Individuals do not need to proceed sequentially through each level of the hierarchy to reach the top, but to be a full-fledged Level 5 leader requires the capabilities of all the lower levels, plus the special characteristics of Level 5. Absence of Highly Capable Individuals leads to a lack of production and increases costs. Level 1 Highly Capable Individual Makes productive contributions through talent, knowledge, skills, and good work habits.

MISSED OPPORTUNITY FOR GREATNESS Level 5 Executive Builds enduring greatness through a paradoxical combination of personal humility plus fierce resolve. MISSED OPPORTUNITY FOR GREATNESS Level 4 Effective Leader Catalyzes commitment to and vigorous pursuit of a clear and compelling vision; stimulates the group to high performance standards. Level 3 Competent Manager Organizes people and resources toward the effective and efficient pursuit of predetermined objectives. Level 2 Contributing Team Member Contributes to the achievement of group objectives; works effectively with others in a group setting. Absence of Contributing Team Members leads to diminished problem solving and reduces efficiency. Level 1 Highly Capable Individual Makes productive contributions through talent, knowledge, skills, and good work habits.

MISSED OPPORTUNITY FOR GREATNESS Level 5 Executive Builds enduring greatness through a paradoxical combination of personal humility plus fierce resolve. MISSED OPPORTUNITY FOR GREATNESS Level 4 Effective Leader Catalyzes commitment to and vigorous pursuit of a clear and compelling vision; stimulates the group to high performance standards. Level 3 Competent Manager Organizes people and resources toward the effective and efficient pursuit of predetermined objectives. Absence of Competent Managers leads to failure to accomplish organizational objectives. Level 2 Contributing Team Member Contributes to the achievement of group objectives; works effectively with others in a group setting. Level 1 Highly Capable Individual Makes productive contributions through talent, knowledge, skills, and good work habits.

MISSED OPPORTUNITY FOR GREATNESS Level 5 Executive Builds enduring greatness through a paradoxical combination of personal humility plus fierce resolve. Level 4 Effective Leader Catalyzes commitment to and vigorous pursuit of a clear and compelling vision; stimulates the group to high performance standards. Absence of Leadership at this level leads to lack of organizational direction & sense of purpose. Level 3 Competent Manager Organizes people and resources toward the effective and efficient pursuit of predetermined objectives. MISSED OPPORTUNITY FOR GREATNESS Level 2 Contributing Team Member Contributes to the achievement of group objectives; works effectively with others in a group setting. Level 1 Highly Capable Individual Makes productive contributions through talent, knowledge, skills, and good work habits.

MISSED OPPORTUNITY FOR GREATNESS Level 5 Executive Builds enduring greatness through a paradoxical combination of personal humility plus fierce resolve. Absence of Executive Leadership leads to organizational failure. Level 4 Effective Leader Catalyzes commitment to and vigorous pursuit of a clear and compelling vision; stimulates the group to high performance standards. Level 3 Competent Manager Organizes people and resources toward the effective and efficient pursuit of predetermined objectives. MISSED OPPORTUNITY FOR GREATNESS Level 2 Contributing Team Member Contributes to the achievement of group objectives; works effectively with others in a group setting. Level 1 Highly Capable Individual Makes productive contributions through talent, knowledge, skills, and good work habits.

Truth – Care enough to confront; share the brutal truth Reaching The Summit Truth – Care enough to confront; share the brutal truth Perspective – Know the difference between passion and obsession. Trust – What matters are the promises we keep, not the promises we make. Truth – Care enough to confront; share the brutal truth Perspective – Know the difference between passion and obsession. Trust – What matters are the promises we keep, not the promises we make.

Focus – Managing fear requires focusing on what is important Reaching The Summit Focus – Managing fear requires focusing on what is important Humility – It is important to appreciate the people who helped get you there

Principles for Effective Discipline and Corrective Action Establish just and reasonable rules based on core values. Communicate rules to all employees. Provide immediate corrective action. Create a system of progressive corrective measures for violation of rules. Provide an appeal process for corrective action. Preserve human dignity. Establish just and reasonable rules based on core values. Communicate rules to all employees. Provide immediate corrective action. Create a system of progressive corrective measures for violation of rules. Provide an appeal process for corrective action. Preserve human dignity. Do not charge a rule violation without first knowing the facts. Obtain agreement that a problem exists. Avoid negative emotions. Remember the purpose of corrective action. Avoid double standards. Enforce rules consistently and firmly. Follow the 4-step method for solving performance problems

Principles for Effective Discipline and Corrective Action Do not charge a rule violation without first knowing the facts. Obtain agreement that a problem exists. Avoid negative emotions. Remember the purpose of corrective action. Avoid double standards. Enforce rules consistently and firmly. Follow the 4-step method for solving performance problems Establish just and reasonable rules based on core values. Communicate rules to all employees. Provide immediate corrective action. Create a system of progressive corrective measures for violation of rules. Provide an appeal process for corrective action. Preserve human dignity. Do not charge a rule violation without first knowing the facts. Obtain agreement that a problem exists. Avoid negative emotions. Remember the purpose of corrective action. Avoid double standards. Enforce rules consistently and firmly. Follow the 4-step method for solving performance problems

Four Step Method for Solving Performance Problems Obtain agreement that a problem exists Mutually discuss alternative solutions Mutually agree upon action to be taken to solve the problem Follow-up to evaluate results and provide encouragement Obtain agreement that a problem exists Mutually discuss alternative solutions Mutually agree upon action to be taken to solve the problem Follow-up to evaluate results and provide encouragement

Nine Key Areas of Leadership Part 1—The Leadership Equation Part 2—The power of vision Part 3—The importance of ethics Part 4—The empowerment of people Part 5—Leadership principles Part 6—Understanding people Part 7—Multiplying effectiveness Part 8—Developing others Part 9—Performance management