11/14/15  

1  

CREATING THE CHANGE FOR THE NEXT GENERATION OF PERFORMANCE MANAGEMENT John L. Bennett, Ph.D. Human Resources Leadership Summit November 17, 2015

© 2015, John L. Bennett All Rights Reserved

Our Agenda

How the Workforce and Workplace are Changing

A Perspective About Performance Management

Leading Change

Wrap up

11/14/15  

2  

Some Assumptions

§ You have already gotten some useful information and insights

§ Some of you are ready to leave

§ You know a lot about performance management

§ You are ready to consider ways to move forward when you return to work

§  I can challenge your thinking and provide you with some frameworks for application

§ You want to get the most out of the time we have

Our Agenda

How the Workforce and Workplace are Changing

A Perspective About Performance Management

Leading Change

Wrap up

11/14/15  

3  

Changing Realities of Work in America Mid- to Late Twentieth

Century Early Twenty-First Century

Permanent Temporary/contingent Stable Volatile Advancement Stagnation Loyalty Disaffection One-and-done education Lifelong learning Defined benefit pension Defined contribution “Early” retirement “Never” retire

(Van Horn, 2013, Working Scared (or not at all))

11/14/15  

4  

Workforce 2020: Looming Talent Crisis Building the 2020 workforce requires companies to focus on the many changes, opportunities, and risks at hand. The Millennial Misunderstanding §  There is widespread agreement that the generation entering the

workforce is different in key ways—but our research shows that executives do not really understand what those differences are.

What Matters Most at Work §  Engagement and loyalty are vital to a successful workforce, yet there is a

meaningful gap between the incentives and amenities companies offer and those that employees really want.

The Leadership Cliff §  Our research shows that companies are ill-prepared for the leadership

challenges of workforce 2020, and are not doing enough to meet future demands.

Bridging the Skills Gap: The Learning Mandate §  Successful companies will create a learning culture that captures and

perpetuates knowledge while empowering employees—but most have far to go.

(Oxford Economics, Workforce 2020: The Looming Talent Crisis,2014)

Did you know?

§ 1/3 of full-time staff aged 50-64

§ 17% of foundation leaders (CEOs and Chief Giving Officers) were aged 65+

§ 28% of CEOs are women (among foundations with assets of $1B+)

§ Between 2000-2010 §  USA’s Hispanic population grew 4 times the rate of the total

population

•  The number of self-identifying mixed white-and-black biracial rose 134

(According to V. Spruill, 2014 Grantmakers Salary and Benefits Report, Council on Foundations; Williams, 2015)

11/14/15  

5  

Did you know?

§ Homeownership among Americans under 35 §  2004: 44%

§  June 2015: 35%

§ Percent with bachelor’s degree or higher among 18-34 year olds: §  1980: 15.7%

§  2009-13: 22.3%

(Rattner, 2015)

Baby Boomers Characteristics: §  Enjoy working in creative and independent manners §  Sensitive to criticism §  Often posses significant professional experience §  Require lots of interaction and “talk” time §  Enjoy icebreaker and introduction activities §  Prefer a spirit of collegiality §  May have problems with authoritarian leaders Events/People: §  Nixon §  Vietnam §  Lucy §  Bonanza §  Civil Rights Movement §  Cold War §  TV §  Rock n’ Roll §  Kennedy and King assassinations Values: •  Professional identity •  Health and wellness •  Material wealth

11/14/15  

6  

Generation X Characteristics: §  Self-reliant §  Require regular, if not constant, feedback §  May lack interpersonal skills §  Can be cynical §  Require relevance in assignments §  Often impatient §  Consider themselves to be technologically capable §  Are adaptable and informal Events/People: §  Columbine §  War in Kosovo §  Oklahoma City bombing §  Princess Diana’s death §  Clinton impeachment trial §  O.J. Simpson trial §  Rodney King riots §  Clinton-Lewinsky scandal §  Fall of the Berlin wall §  McGwire-Sosa homer derby §  Dot Com Boom and Bust of the 1990s §  Space Shuttle Challenger Disaster §  Three-mile Island §  Iran Contra §  AIDS §  Corporate downsizing §  Tripling divorce rate §  Both parents working (“latchkey kids”

Values: §  Mobility §  Autonomy §  Balance in their lives (work from anywhere)

Ethan Hawke

Winona Ryder

Generation Y/Millennials Characteristics: §  Confident §  Accustomed to group work §  Comfortable with active learning §  Multi-task with ease §  Technological experts §  Goal and achievement oriented §  Require more structure and mentoring §  Learn from failure §  Motivated by money and earning potential §  Well connected People/Events: §  Jessica McClure §  Baby M §  Hilary Duff §  Tiger Woods §  Kobe Bryant §  Afghanistan/Iraq §  September 11 §  90% of fathers attended their birth §  Average age of Moms at birth: 27 §  Murrah federal building bombing (Oklahoma City) §  Columbine §  Police officers and fire fighters portrayed as heroes §  16% grew up in poverty §  Biggest gap among them is about technology

Labels: §  Millennial Generation §  Internet Generation §  Echo Boomers §  Boomlet §  Nexters §  Generation Y §  Nintendo Generation §  Digital Generation

Requests: •  Help us learn •  Believe in us •  Tune in to our technology •  Connect us •  Let us make it our own •  Tell us how we’re doing •  Be approachable •  Plug in to our parents •  Be someone we can

believe in

11/14/15  

7  

Self Across Generations Baby Boomers Generation X/”Generation Me”

Self-fulfillment Fun Journey, potentials, searching Already there Change the world Follow your dreams Protests and group sessions Watching TV, surfing the Web, and

texting Interest in government Interest in yourself and your friends Spirituality Things Philosophy of life Feeling good about yourself

(Twenge, 2014)

Self-Esteem

…self-esteem doesn’t cause academic achievement, good behavior… (California Task Force to Promote Self-Esteem and Personal and Social Responsibility) …self-esteem does not lead to better grades, improved work performance, decreased violence, or less cheating. In fact, people with high self-esteem are often more violent and more likely to cheat…. “…forget about self-esteem and concentrate more on self-control and self-discipline.” (Baumeister)

(Twenge, 2014

11/14/15  

8  

Narcissism §  The darker side of overly positive self-views §  “I am an important person”

§  1950’s, 12% of teens aged 14-16 agreed §  Late 1980’s, 80% agreed

§  In 2009, the average college student scored higher in narcissism than 65% of students in 1982

§  If narcissism has increased: §  Less giving (less charitable giving) §  Have inflated expectations §  Display less empathy §  Have higher materialism §  Make more unique choices (e.g., baby names) §  Cheat more often §  Have less committed relationships §  Undergo more plastic surgery §  Display more anger and aggression (Twenge, 2014)

Our Agenda

How the Workforce and Workplace are Changing

A Perspective About Performance Management

Leading Change

Wrap up

11/14/15  

9  

A Brief History http://compensationinsider.com/the-history-of-performance-reviews-infographic/

A Performance Management Challenge

Imperfect people assessing imperfect people imperfectly

using imperfect systems to achieve impossible goals.

11/14/15  

10  

Terms/Concepts

§ Performance

§ Management

§ Performance + Management

Terms/Concepts: Alternatives

§ Performance Enhancement

§ Performance Empowerment

§ Performance Mastery

§ Capability (ability + willingness) System

§ Capability Development & Alignment

§ Feedback System

11/14/15  

11  

Mastery Model

Leve

l of E

ffect

iven

ess

AWARENESS ACCEPTANCE

ADOPTION

Time

INTEGRATION

MASTERY

AWARENESS Understands that a change is likely

Has insight about self in relationship to the change

ACCEPTANCE Engages in the new role or change

Commits to shifting mindsets and behaviors because of the change

ADOPTION Actively engages in the new change mind sets, behaviors

Acquires or develops the capabilities to perform in the change

INTEGRATION Blends the mindsets, behaviors and capabilities in order to make the new performance “natural”

Links changes into existing processes, policies for sustainment

MASTERY Continues to develop the capacity to make additional changes

Applies the development in new and different contexts (i.e. future changes)

Unconscious Competence Conscious Competence Conscious Incompetence

(Bennett & Bush, 2014)

Feedback

Self-Regulation Model & Feedback (Based on DeNisi & Kluger, 2000; Higgins, 1987; London, 2003)

“Ideal” Self

(What you want to be & do)

“Ought” Self

(What others want you to be & do)

Reinforcing Feedback

Developmental Feedback

Continue to Improve

Avoid Disappointing

Others

No Incentive for

Development

Develop/Shift Give up

© 2014, John L. Bennett All Rights Reserved

11/14/15  

12  

Coaching for Change: A Systems Perspective

Performance

Feedback

Agenda for Coaching

Contracting for Coaching

Coaching

Results

© 2014, Bennett & Bush, All rights reserved

Our Agenda

How the Workforce and Workplace are Changing

A Perspective About Performance Management

Leading Change

Wrap up

11/14/15  

13  

Levels of Impact Social

Systems

Organization

Team/Group

Individual

Challenge of Organizational Change

Nearly two-thirds of all major changes in organizations fail §  Only 20 to 30% of reengineering projects succeed1

§  Only 23% of mergers & acquisitions make back their costs2

§  Just 43% of quality-improvement efforts make satisfactory progress3

§  9% of major software development applications in large organizations are worth the cost. 31 percent get cancelled before completion.4

§  53% will result in cost overruns by 189 percent!4

1 Hal Lancaster. "Reengineering Authors Reconsider Reengineering" Interview with Michael Hammer and James Champy. The Wall Street Journal. January 17, 1995. 2 Anne Fisher. "How to Make a Merger Work." Fortune. January 24, 1994. 3 Linda Moran, Jerry Hogeveen, Jan Latham, and Darlene Russ-Eft. Winning Competitive Advantage. Zenger Miller. 1994. 4 Jim Johnson. "Chaos: The Dollar Drain of IT Failures." Application Development Trends. January, 1995.

11/14/15  

14  

Change is the “New Normal”

Companies no longer have the luxury of expecting day-to-day operations to maintain a static or predictable pattern that is occasionally interrupted by short bursts of change.

“It is no longer appropriate to consider organizational change as a project or event, with a clearly defined beginning or end”

(Corporate Leadership Council, 2003a, 1)

“To prosper, leaders will need to abandon such outdated notions of change. In reality, the new normal is continuous change—not the absence of change”

(Thompson, Bear, Dennis, Vickers, London, & Morrison, 2009, 6)

Most organizations acknowledge change as a continuous process that impacts the way companies manage change.

Lewin’s Change Model (1947)

Un-Freeze •  Overcome inertia •  Dismantle the

existing mind set

Change •  Transition and

Confusion •  No clear picture of

outcomes

Freeze •  Change Crystallizes •  Comfort is regained

as change becomes “normal”

Kurt Lewin was a psychologist known as one of the modern pioneers of social, organizational and applied psychology and was one of the first to study change as an organizational phenomenon.

If you want to truly understand something, try to change it. - Kurt Lewin

11/14/15  

15  

Bridges, William, Ph.D., Transitions. Making Sense of Life Changes, Addison-Wesley Publishing Co. (1980)

§  People discover they have to let go of what was normal, predictable and comfortable in their environments

§  They feel a loss of control

§  Some may be genuinely optimistic

Bridges: How People Experience Change

Endings BeginningsTransitions§  As people go through the

points of transition, they can start to blame and even become angry

§  People may feel uncertain, lost, afraid, “in limbo,” or have unusual outbursts of frustration or anxiety

§  The key here is to focus on going forward, not on the past

§  As with endings, those who are optimistic should continue to be encouraged

§  People have chosen to commit and participate in building the new environment

§  Now that they are more comfortable with the transition, they can become impatient for progress and may be hopeful about building new trust, relationships and achievement Change Is

Announced

Time

Com

mit

men

t

Why is Change so Hard?

§ All change is a loss experience

§ Experiencing a lack of choice

§ Change involves a shift away from known situations with their familiarity, comfort, and advantages

§ Exchanging the known for the unknown; certainty for uncertainty; existing patterns of behavior for new patterns; tried rewards for untested ones

People do not resist change per se, but resist losing something of value to them – a loss of the known and tried

(Burke)

11/14/15  

16  

Why Change Fails

1.  Not establishing a great enough sense of urgency 2.  Not creating a powerful enough guiding coalition 3.  Lacking a vision 4.  Under-communicating the vision by a factor of ten 5.  Not removing obstacles to the new vision 6.  Not systematically planning and creating short-term

wins 7.  Declaring victory too soon 8.  Not anchoring changes in the organization’s culture

Roles in Change (adapted from Conner, 1992)

Role Responsibility or Contribution Sponsor §  Decides which changes will happen

§  Communicates new priorities to the organization §  Provides resources to enable the change

Agent §  Executes the change—an individual or group §  Develops the plan to deal and deploys the change

Target §  Makes the change—the individual or group that is the focus of the change effort

Advocate §  Individual or group who wants to achieve a change, but without power or position to sanction it

(Bennett & Bush, 2014)

11/14/15  

17  

The Roles of Change Role Contribution

Sponsor

§  What do you wish to accomplish? Is the appeal emotional as well as intellectual?

§  What is the compelling business case for the change? §  Does the vision articulate potential gains for all stakeholders? §  Who needs to be involved to sustain this change initiative?

Agent

§  Is the appeal of the vision emotional as well as intellectual? §  Why will others consider this change important to them? §  Who may resist or oppose this change, and why? §  How are you using rewards and consequences to guide change?

Target §  Do you see a reason to change in the vision or case for change? §  What will you need to alter or do differently to implement the change? §  What is your reaction to the change?

Advocate

§  How will you support the sponsor’s efforts to initiate and sustain the change?

§  What are you asking the sponsor to do? §  How can you help the sponsor?

(Bennett & Bush, 2014)

Levels of Change Resistance

1.  I don’t understand it 2.  I don’t like it 3.  I don’t like YOU

(Maurer, 1996)

11/14/15  

18  

Gleicher Change Formula (1969)

>  x  x  

Change  

Success  

C   =   R  

Resistance  The  natural  

reac7ons  everyone  has  to  change  plus  systemic  barriers  

F)  

First  Steps  The  ini7al  measurable  

ac7ons  that  build  momentum  &  credibility  

V  

Vision  A  compelling  

business-­‐related  descrip7on  of  the  

future  that  resolves  the  

dissa7sfac7ons  

(D  

Dissa:sfac:on  Dissa7sfac7on  with  the  current  state;  the  case  for  

change  

Forces of Change: Force Field Analysis

Driving Forces

Competition Stakeholder Expectations Technology

Earnings

Opposing Forces Apathy Hostility

Resource Constraints Sponsorship

Fear Uncertainty

Desired Change

(Based on Kurt Lewin’s model)

11/14/15  

19  

What is the change about?

Why is It important?

What will success look like?

What I need From you?

Case for Change Individual Application - Elevator Speech

Our Agenda

Introduction

How the Workforce and Workplace are Changing

A Perspective About Performance Management

Leading Change

Wrap up

11/14/15  

20  

A Few Key Messages

§ Workforce and workplace are changing § Expectations for feedback are changing § No ONE answer § Tailor your approach §  Implement a change strategy

§  Sense of urgency and a business case §  Sponsorship §  Communicate §  Get others onboard §  Early wins §  Don’t let up

Selected References & Resources: Multiple Generations §  Bourke, B. (2014). Adult millennials: Conceptualizing a student subpopulation with

implications for online teaching and learning. In K. Kungu, G. L. Schnellert & J. Keengwe (Eds.), Cross-cultural online learning in higher education.

§  Bridges, T. (2015). 5 ways the workplace needs to change to get the most out of Generation Z. Fastcoexist.

§  Deal, J. J., Stawiski, S., Gentry, W. A., & Cullen, K. L. (2013). What makes a leader effective? U.S. boomers, Xers, and millenials weigh in. Center for Creative Leadership. Greensboro, NC.

§  Dychtwald, K., Erickson, T., & Morison, B. (2004). It's time to retire retirement. Harvard Business Review.

§  Dychtwald, K., Erickson, T., & Morrison, R. (2006). Workforce crisis: How to beat the coming shortage of skills and talent. Boston, MA: Harvard Business School Press.

§  Erickson, T. (2009). What's next, gen X?: Keeping up, moving ahead, and getting the career you want. Boston, MA: Harvard Business Press.

§  Espinoza, C., Ukleja, M., & Rusch, C. (2010). Managing the millennials: Discover the core competencies for managing today's workforce: John Wiley & Sons.

§  Hershatter, A., & Epstein, M. (2010). Millenials and the world of work: An organization and management perspective. Journal of Business Psychology, 25, 211-223.

§  Meister, J. C., & Willyerd, K. (2010). The 2020 workplace: How innovative companies attract, develop, and keep tomorrow's employees today. New York, NY: HarperCollins.

11/14/15  

21  

Selected References & Resources: Multiple Generations (continued) §  Meister, J. C., & Willyerd, K. (2010). Mentoring millenials. Harvard Business Review(May). §  Rattner, S. (2015, August 2). Making life too hard for millennials, Opinion, New York Times,

p. 3. §  Spruill, V. (2015, March 3, 2015). A moment of self reflection. §  Toossi, M. (2002). A century of change: The US labor force, 1950-2050. www.bls.gov/opub/

mlr/2002/05/art2full.pdf §  Twenge, Jean M. (2014). Generation me: Why today's young Americans are more confident,

assertive, entitled--and more miserable than ever before (Revised and Updated ed.). New York, NY: Atria.

§  Twenge, J. M. (2010). A review of the empirical evidence of generational differences in work attitudes. Journal of Business Psychology, 25, 201-210.

§  Tulgan, B. (2000). Managing Generation X: How to bring out the best in young talent (Revised ed.). New York, NY: W. W. Norton & Company.

§  Walker, R. (2015, August 8). How to approach the generation gap in the workplace, NY Times.

§  Williams, A. (2015, September 20). Move over, millenials: Here comes generation Z, NY Times.

§  Van Horn, C. E. (2013). Working scared (or not at all): The lost decade, great recession, and restoring the shattered American dream. England: Rowman & Littlefield.

§  Zemke, R., Raines, C., & Filipczak, B. (2013). Generations at work: Managing the clash of boomers, Gen Xers, and Gen Yers in the workplace. New York, NY: AMACOM.

Selected References & Resources: Performance Management & Change §  Bennett, J. L., & Bush, M. W. (2014). Coaching for change. New York, NY:

Routledge. §  Bridges, W. (1991). Managing transitions: Making the most of change.

Reading, MA: Addison-Wesley Publishing Co. §  Bridges, W. (2000). Transition: The personal path through change: Carlson

Learning Company. §  Conner, D. R. (1992). Managing at the speed of change: How resilient

managers succeed and prosper where others fail. New York, NY: Villard Books.

§  Kotter, J. P. (2007). Leading change: Why transformation efforts fail. Harvard Business Review(January), 96-103.

§  Kotter, J. P., & Cohen, Dan S. (2002). The heart of change: Real-life stories of how people change their organizations. Boston, MA: Harvard Business School Press.

11/14/15  

22  

John L. Bennett, Ph.D. McColl School of Business Queens University of Charlotte bennettj@queens.edu 704-224-4222 @coach4orgchange