1. PERFORMANCE MANAGEMENT SYSTEMS
Brighter Monday, HR Forum
28th September 2018

2. Content A definition Evolution of performance systems
Real life performance management
Essentials of a good performance management system
Common Challenges & Possible Solutions
Trends – Current & Future
Content 1 2 3 4 5 6

3. What is a performance management system?
Alignment to overall strategy, mission and values
Communication
Individual Performance
Systematic process
Measurement of performance
What is a performance management system?
Feedback…
Team/organizational performance
Documenting performance
Objectives/goals/KPIs
Cyclical, yet continuous
Performance Improvement
Relative Performance
“It is the process of systematically assessing the performance of an employee and using the assessment to better the performance over time.”

4. The evolution of performance systems
Primitive systems e.g., observations in plantations and cotton mills.
Focus on individual performance rather than overall organisations performance.
Early 1900s:
Gradual invention of more formal systems.
Focus on operational efficiency and effectiveness – hence the development of the ROI concept.
Therefore focus was on getting the most out of company performance and revenues.
Mid 1900s:
The era of Management By Objectives (MBOs) thanks to Peter Drucker.
More formal systems widely adopted.
Focus on self appraisals and future focus on performance.
Introduction of rating scales to bring in more objectivity.
Greater linkage between individual and team performance (Concept of objectives & key results).
2000s to Modern Day:
Greater focus on employee motivation and engagement.
Measurement of ‘how’ metrics alongside the ‘what’.
Focus on development of the individual, i.e., managing gaps.
Refinement of the objectives and key results concept.
Multiple feedback systems /360 degree feedback.
Use of technology and social networks.
Performance management systems have evolved to meet the changing demands of organisations by society, owners and investors:
Higher performance
Talented employees
Leadership accountability
Performance management systems are therefore no longer just operational (performance appraisals and reviews); They are very much a part of how organisations manage it’s most important resource….hence more…
Strategic – Alignment of individual and organizational goals, future focused.
Integrated – Reward management, talent management
MBOs also known as management by results – popularized in 1954 in his book The practice of management

5. Real life performance management
Managing Star and Good Performance
Managing Under Performers
Managing non performance
Tend to be ignored until something goes wrong!
Keep them engaged through continuous feedback, spot recognition and rewards.
Show them the bright future ahead – career growth & opportunities
Develop them – build their skills & capabilities-expose them to higher levels of growth & responsibility
Tend to take a lot of management time!
Have a system that is effective in identifying & quickly addressing performance issues.
Provide clarity & constant coaching & supervision.
Have a robust performance improvement process that is fair and positive.
Recognise improvement and reward good performance.
Coach Line Managers in having difficult conversations.
Have a legal proof performance exit process.
Document and store/archive properly.
how best to manage talent in order to retain your star performers and how to boost the performance of those who are causing problems, while avoiding common pitfalls.
Be Consistent & Be Fair

6. Essentials of a good performance mgt system
Does your system allow for and ensure completeness of performance records?
Do you have an archiving system?
How quickly can performance reports be turned around?
How fast are appeals and escalated issues resolved?
How well is your system integrated with your talent and reward process? Is feedback from such processes incorporated?
Is there a framework to provide overall
feedback to senior management?
How promptly do you plan for the new performance cycle?
Are the annual plans, goals & priorities cascaded effectively and promptly?
Does each employee in your organization understand these priorities & how they contribute to them?
Is there a framework in place for individuals to set and align goals with their LMs?
How are new employees on-boarded from day 1?
Planning
Acting
Monitoring
Reviewing
Documenting/Closure
Are your managers trained on how to coach their teams on a day to day?
Are managers and employees clear on what it actually takes to deliver on agreed goals?
Are employees getting all the necessary support to deliver?
Is their continuous conversation and feedback on performance?
How flexible is the organization and employees to change? (Speed!)
Ultimately, an effective performance management system is one that meets the following essential characteristics: fair (& seen to be fair), aligned, continuous, jointly owned & documented.
Is there a formal review framework in place?
How fair and reliable is this framework? e.g., self assessment, incorporate multi-feedback processes?
Is the review wholesome – KPIs, developmental and career growth wishes, reward outcomes?
Is there an escalation or appeal process?
Is there a framework in place for spot recognition and celebration of milestones?
Is there a framework in place to quickly identify & manage performance issues?

7. Common Challenges Lack of management commitment &/or Understanding.
Lack of alignment to overall organizational goals, organizational culture, values and other fundamental organizational processes that may feed into and/or impact the performance management process, e.g., annual operating plans, budgeting process.
Poor goal setting – Unclear goals/Goals with no measurement or success criteria/ Goals that are not aligned to departmental ones or organizational ones/Lack of robust data collection or measurement systems
Inability to quickly flex goals and priorities to changing business environment – In a volatile and uncertain world, business goals and individual goals should reflect the reality of any significant environmental changes that may impact business delivery.
Lack of line manager capability and/or commitment – Line Managers being unable to or unwilling to hold ongoing and honest conversations.
Poor documentation/record keeping

8. …& Possible Solutions…
Minimize form filling/Use technology to make it simpler
Train line managers in coaching skills
Performance Reports to senior management
Reporting on other people metrics at senior level – e.g., attrition, probation fails, performance exits…etc
Benchmarking reports – what are other similar or bigger organisations doing?
Integration and timing/wholesome HR ad business planning processes.
Regular performance cascades
Co-ownership & accountability.
Gather post-process feedback from employees through surveys.
Show WIIFM – Growth & development, reward & recognition.
Measure not just the what but also the how of delivery.
Build people management effectiveness into individual line manager goals.

9. Trends in performance management
Focus on quality rather than quantity
Continuous conversations
Employee experience
Frequent & real-time feedback
Measuring impact rather than completion rates
Simplicity
Strip out what isn’t necessary – e.g., formal reviews at mid-year, ratings, calibration sessions
Robust performance improvement process
Intuitive technology
Change in Pay for Performance Approach
Less pay grids & guidelines for line managers
Basing pay on market rates and level of responsibility
Focus on outliers for differentiation – i.e., your stars & your under-performers
global giants such as General Electric and Microsoft who have stripped out complexity such as annual appraisals, ratings, calibration meetings and competency assessments, focusing instead on regular, quality performance conversations and feedback

10. Closing thoughts…
“All organisations are perfectly designed to get the results they are now getting. If we want different results, we must change the way we do things.”
Tom Northup
“In business, the idea of measuring what you are doing, picking the measurements that count like customer satisfaction and performance… you thrive on that.”
Bill Gates
“Research indicates that workers have three prime needs: Interesting work, recognition for doing a good job, and being let in on things that are going on in the company.”
Zig Ziglar
“Curious that we spend more time congratulating people who have succeeded than encouraging people who have not.”
Neil deGrasse Tyson
“Performance Management isn’t dead, the old way of thinking about it is”
Anita Bowness
“In most cases being a good boss means hiring talented people and then getting out of their way.”
Tina Fey
“Don’t tell people how to do things, tell them what to do and let them surprise you with their results.”
George S. Patton Jr.
“What gets measured gets managed”
Peter Drucker