Angel Medinilla
[email protected] www.proyectalis.com/en/AngelMedinilla
(Slides, Videos, Newsletter, Books, Blog, LinkedIn, Sketchnotes, Twitter...)
Twitter: @angel_m (pictures, followers & feedback welcome)
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www.improvement21.com facebook.com/improvement21
@improvement_21
We help people and companies create continuous improvement habits
More at http://Slideshare.net/proyectalis
Thesis: Performance Reviews Are Evil
They punish, humilliate and demotivate employees
They are actually arbitrary They trigger zero-sum games
They cost a lot They don’t work!!
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Fact: We Hate Them!Maybe just a little bit less than yearly budgets and
firing people...
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Fact: we’re getting rid of themNot only “fancy” companies:
Deloitte, SAP, Adobe, Accenture, GE...
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Fact: SAP
The annual review was dreaded. Managers have anxiety about
communicating annual rating decisions. The company figures it spent two and a
half hours of management time prepping for each review -- 200,000
hours a year -- for "conversation that were very past-focused and layered with the anxiety associated with the rating."
Jewell Parkinson, human resources chief at SAP North America
http://www.philly.com/philly/blogs/inq-phillydeals/-SAP-plans-to-end-yearly-performance-reviews.html
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Fact: AccentureWe’re done with the famous annual
performance review, where once a year I’m going to share with you what I think about you. That doesn’t make any sense.
[...] We are getting rid of all this comparison with other people.
Pierre Nanterme, CEO Accenture
https://www.accenture.com/ma-en/company-accenture-ceo-performance-review
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Fact: DeloitteDeloitte long knew that their old performance
management approach neither boosted employee engagement nor high performance.
Deloitte conducted a public survey to find out what managers thought of performance reviews,
and 58 percent of managers stated that traditional performance reviews did not serve its purpose.
[...] It was discovered that the whole performance
review cycle – filling in forms, holding meetings and doing the actual ratings – consumed around 2
million hours a year. Most of this time was apparently spent discussing ratings instead of
actually talking to employees about their performance.
http://blog.impraise.com/360-feedback/deloitte-joins-adobe-and-accenture-in-dumping-performance-reviews-360-feedback
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Thesis: My findings were that bad managers
needed a strict formal review process in order to consider import
performance aspects and discuss them with staff. But this did not improve
their managing or motivational skills, ... it was a weak band-aid. Worse yet, ... Great Managers were wasting
time filling out review forms to document what was already clear to all
parties
Robert Newman, CEO at MiTeGen
https://www.linkedin.com/pulse/why-ge-giving-up-employee-ratings-abandoning-annual-reviews-immelt
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Why do we conduct appraisals?
Increase Performance? Increase Engagement / motivation?
Salary / Compensation? Feedback?
“Paper Trail”?
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Why do they fail?Command and Control Culture
Implicit subjectivity / Bias
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Why do they fail?Complexity & Measuring “performance”
Non linearities (ej. “Annual Profit”) Annual - goal change
Transfer problem
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Why do they fail?
Fear of Feedback Evaluation against others
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Why do they fail?According to Stanford University Professors
Jeffrey Pfeffer and Robert Sutton, compensation for performance are generally ineffective when tasks are
complex or require collaboration.
http://blog.impraise.com/360-feedback/deloitte-joins-adobe-and-accenture-in-dumping-performance-
reviews-360-feedback
More at http://Slideshare.net/proyectalis
Why do they fail?According to Stanford University Professors
Jeffrey Pfeffer and Robert Sutton, compensation for performance are generally ineffective when tasks are
complex or require collaboration.
http://blog.impraise.com/360-feedback/deloitte-joins-adobe-and-accenture-in-dumping-performance-
reviews-360-feedback
By the way...
Management by numerical goals is an attempt to manage without
knowledge of what to do, and in fact is usually managementby fear
[...] Eliminate numerical quotas, including management by
Objectives
W. Edwards Deming “Out of the Crisis” - 1986
What can we do different?Command and Control Problem
Measurement Problem Feedback / Evaluation Problem
Salary / Bonus Problem
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The Compensation ProblemStudy science and research!
Detach Improvement from money - SERIOUSLY: get rid of bonuses and incentives
Semco 5 salary factors Netflix Salary Policy
Buffer Open Salaries / Open Equity Jurgen Appelo’s Salary Formula
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The C&C ProblemMake it Collaborative
(only when money is out of the table!) Google OKR’s
Appszoom Peer Review Process Happy Force Employee / Company retrospectives +
Endorsement system (Kudos)
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The Measurement problem“Not everything that counts can be counted”
Use the Marriage Counseling Metaphor Jurgen Appelo’s Metrics Ecosystem & Complexity rules
Google OKR’s
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The Feedback ProblemEliminate Fear
Focus on Improvement Give feedback
Receive feedback Ask for feedback
Make it public
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As a summary...1) Focus on improvement!
2) Do not mix improvement, feedback and engagement with compensation
3) Teach people to give, receive and ask for feedback
4) Set goals together, bring everyone into the conversation
5) Make the process continuous
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And remember:It's not extra work...
...IT’S YOUR ACTUAL JOB!
http://creativecommons.org/licenses/by-nc-nd/3.0/
This presentation is based upon the ideas and work of many people. And while I’ve tried to recognize copyrights and give credit and attribution where possible, I cannot possibly list them all, so if you feel like there’s something that should be added, changed or removed from this presentation, please drop me an e-mail at [email protected]
All drawings and materials in this presentation are CC BY-NC-ND by Angel Medinilla. You are free to use them in the terms of this license.
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