2012 APTMetrics, Inc.

What HR Can Learn From

to Improve Individual, Team, and Organizational Performance

Robert C. Satterwhite, Ph.D.

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What You Will Learn…

1. How to identify performance criteria in support of organizational goals

2. How to leverage the appraisal process to improve performance

3. How to design and integrate developmental resources and other tools with the performance appraisal process

4. How to promote program transparency through communication

5. How to examine your program to overcome typical challenges faced by organizations

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Performance Appraisal: Style

STANDARDS

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Performance Appraisal: In

American Idol The Real World

Standards Criteria

Auditions Performance

Critiques Ratings

Developmental Suggestions

Feedback/Action Planning

Advisors Mentors

Advertisements Communication

Real World Challenge

Not always job-related, too few/many, inconsistent

Difficult to observe, especially if virtual

Subjective, rater “errors” (e.g., recency, halo)

Irregular, inadequate resources, disconnected from ratings or criteria

Informal, inconsistently executed

Lacks timeliness and transparency

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Element #1: Criteria – Overview

• Use (implicit) set of relevant standards to evaluate each performer

• Standards are (generally) applied to all performers

• Identify critical, job-related criteria to evaluate performance

• Apply criteria consistently across employees

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Element #1: Criteria – The “What” & The “How”

Organizational

Functional

Leadership

Individual

Team

Department

COMPETENCIES

PERFORMANCE GOALS

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Element #1: Criteria – Dept. Manager Example

Organizational Judgment, Communication, etc.

Functional Dept. Inventory

Leadership Dept. Talent Planning

Complete On-time Dept. Evaluations Individual

Reduce Store-wide Shrinkage Team

Increase Sales by 5% Department

COMPETENCIES

PERFORMANCE GOALS

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Element #1: Criteria – Competency Example

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Element #1: Criteria – Data-driven Performance Goal Example

Shrinkage Reduction (Current vs. Last Year)Rating Definition

5 8% Reduction

4 4% Reduction

3 No Change from Last Year

2 4% Increase

1 8% Increase

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Element #1: Criteria – SMART Performance Goal Example

Develop and deliver project management training by 3rd quarter.• Specific/Behavioral

• Measurable/Verifiable

• Achievable

• Realistic

• Time-bound

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Element #1: Criteria – “Cascading” Down Drives Organizational Performance Up

• Represents aggregate of employee efforts to excel on competencies & reach performance goals

• Goals cascaded in support of mission, vision, strategy

• Identify what is to be accomplished

• Definitions & behaviors cascaded by level in support of mission, vision, strategy

• Identify how goals will be accomplished

Competencies

Performance Goals

Organizational Performance

Drive

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Element #1: Criteria –Dept. Manager Example Revisited

Company Goals: Increase sales Increase quality of

talent Decrease theft

Regional Exec. District Mgr. Dept. Mgr.

GOALS

• Individual On-time Region Evals. On-time District Evals. On-time Dept. Evals.

• Team Region Shrinkage District Shrinkage Store Shrinkage

• Higher Region Sales District Sales Dept. Sales

COMPETENCIES

• Leadership Regional Talent Plan District Talent Plan Dept. Talent Plan

• Functional Region Inventory District Inventory Dept. Inventory

• Organizational Judgment, Comm. Judgment, Comm. Judgment, Comm.

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Element #1: Criteria – Additional Considerations

Identify and define 4 – 8 key competencies + performance behaviors• Use SMEs to document their importance to jobs• Cascade competencies across job levels as

appropriate• Revisit competencies every 3 – 5 years or when jobs

change Identify and define 3 – 5 performance goals

• Cascade goals down through the organization• Conduct 2nd level review or manager calibration to

ensure they are fair, objective, and consistent Apply criteria consistently across employees,

e.g., by:• Job Title (e.g., Sales Associate I)• Job Family (e.g., Sales)• Job Level (e.g., Manager)

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Element #2: Performance – Overview

• Use live auditions and performances to directly observe each participant

• Use direct and indirect observations of performance

• Collect additional input from other parties as necessary

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Element #2: Performance – Direct vs. Indirect Observation

• Direct observation:• Ride or listen alongs• Participation in team projects• Onsite job simulations

• Indirect observation:• Web-based job simulations• Review output (e.g., reports)• Obtain input from others who have viewed participant’s

performance• Informal (e.g., feedback from dotted-line supervisor) &

formal (e.g., 360 surveys)

• Feedback at an aggregate level• Customer surveys• Engagement surveys

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Element #2: Performance – Additional Considerations

Work to ensure consistency in “observing” performance across employees within a given…• Role• Level

Regular and consistent indirect observation is especially critical for virtual team members; consider:• Recurring meetings• Frequent reviews

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Element #3: Ratings – Overview

• Use critiques to make on-the-spot YES (“Going to Hollywood”) or NO (“Not this year”) judgments

• Use managerial ratings and objective evaluations as input to developmental feedback and administrative decisions

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Element #3: Ratings – Excuses for Not Giving Ratings

• “I don’t have time.”• “It’s hard to rate someone’s

performance over the course of a whole year.”

• “I know in my gut how well they have performed.”

• “Each member of my team knows how I feel about their performance.”

• “I know how I feel about their performance – what about how they feel about their own performance?”

57% of businesses

struggle with

performance managemen

t

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Element #3: Ratings – Options

Rating Option

1. Manager provides overall performance rating using criteria as input

Pros/Cons

Efficient× Lacks consistency× Fails to recognize strengths

& dev. opportunities

*Could be automatic if completely data-driven.

2. Manager evaluates each competency and performance goal* + provides overall rating

Relatively efficient Recognizes strengths & dev.

opportunities× Lacks consistency

3. Manager evaluates each competency and performance goal*; overall rating determined through weighted algorithm

Relatively efficient Promotes consistency,

standardization, & legal defensibility

Recognizes strengths & dev. opportunities

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Element #3: Ratings – Additional Considerations

Require/recommend that employees provide self ratings• Helps identify “blind spots” & unrecognized potential

Conduct mandatory organization-wide training to…• Increase awareness of rater “errors” such as halo,

leniency, central tendency, similar-to-me, recency, etc.*• Encourage managers/employees to document projects,

products, key accomplishments throughout the year

Track ratings process to ensure 100% participation• Include as part of managers’ performance goals

Conduct review of ratings to ensure they are fair, objective, and consistent• Recommend 2nd level review or manager calibration• Review data for rater “errors”• Examine data for adverse impact against protected groups

*Rater “errors” may not always be errors!

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Element #4: Feedback/Action Planning – Overview

• Provide on-the-spot encouraging and constructive comments

• Provide suggestions for improving performance

• Use regular, objective positive and developmental feedback related to performance

• Provide accessible resources and time-bound actions for developmental opportunities

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Element #4: Feedback/Action Planning – Reasons Why We Don’t Give Feedback

• “I don’t have time.”

• “It’s embarrassing to tell people they’ve done

poorly.”

• “I know that my team needs to improve but I

don’t know how to help them.”

• “If she knows how well she’s doing she’ll

probably want to get promoted!”

• “My direct reports are reluctant to seek

feedback.”

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Element #4: Feedback/Action Planning – The Seven B’s

1. Be Available – Investing time in your team demonstrates your commitment to their growth and success

2. Be Approachable – Make changes in your behavior and office to encourage interactions

3. Be a Listener – Start with their perspective4. Be Positive – Focus first on strengths, then

opportunities5. Be Supportive – Use “I” and “We” statements

to motivate and create a sense of team6. Be Objective – Keep feedback specific,

behavioral and focused on performance7. Be Timely – Don’t delay feedback but ensure

context is appropriate (praise in public, punish in private)

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Element #4: Feedback/Action Planning – Tool #1: Gap Analysis/180-degree Survey

Includes: • Self-rating• Manager Rating• Current Job

Requirements• Next Level Job

Requirements• Unrecognized

Potential• Blind Spots/Gaps

Identify gaps for current and one- level-up positions

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Element #4: Feedback/Action Planning – Tool #2: Developmental Resource Guide

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• Final Evaluation Criteria

• FAQs

• “Walking Deck” to Review in Staff Meetings, Town Halls, etc.

• Developmental Resources Guide

Element #4: Feedback/Action Planning – Tool #3: Manager Toolkit

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Element #5: Mentors – Overview

• Guide performer’s development through recommendations and regular formal interactions

• Guide mentee’s development through advice, introductions, motivation, emotional support, etc. as well as regular formal interactions

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Element #5: Mentors – Setup and Implementation

• Conduct needs assessment through…• Surveys• Focus groups/sessions• Evaluation of strategic goals/organizational

initiatives• Use results from needs assessment to…

• Develop mentoring process• Identify and recruit participants• Match mentors and mentees

• Implement mentoring program…• Conduct orientation and training• Evaluate program effectiveness, including effect

on diversity and inclusion initiatives

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Element #5: Mentors – Benefits

• For mentees…• Professional

development• Sponsorship• Career planning• Support

• For mentors…• Personal satisfaction• Insights into own work

processes• Renewed sense of

relevance and investment

• For organizations…• Improved retention,

knowledge transfer, and professional development

• A culture that values employee development

• Key component in the development and retention of diverse talent in leadership roles

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From Frank Dobbin, Evidence-Based Diversity Management: What works in Corporations, Military Leadership Diversity Commission, June 2010

Element #5: Mentors – Program Effects on Management Diversity

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Element #5: Mentors – Relationship Between Mentoring and Workforce Representation

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Element #6: Communication – Overview

• Use host to explain the show’s format, structure, and process

• Broadcast advertisements to promote the show

• Use HR to describe the process’ content, tools, and procedures

• Publicize process through focus groups, webinars, announcements, training, etc.

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Element #6: Communication – Introducing Process to Company

A well-planned and engaging rollout

ensures buy-in and adoption of processes

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Element #6: Communication – Key to Transparency

• Communication begins early and parallels project development and implementation• Identify and leverage…

• Stakeholders who will champion the process and build support

• Diverse, long-tenured, high performing SMEs who will lead/support process development

• Develop and deliver training, webinars, town hall slides, emails, etc.

• How and why process was developed, timing, implementation, etc.

• Define and disseminate policies and procedures (e.g., for new managers and employees)

• Follow-up to obtain feedback from users

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Closing Thoughts: First Things First!

Bring key stakeholders to the table at the planning

stage…and again at key points in the process

Identify your goals first, and then your supporting

process

Design your process first, and then your system to

support it

Create mechanisms that encourage and reward

participation

Conduct a pilot to work out the kinks and get feedback

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Any Questions?