Rethink Performance Management to make HR less
complex and more effective
Stefan Van der Wilt – SAP SuccessFactors, Pre-sales expert
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2
SAP Performance Benchmarking 2013/14
Performance Management Improves Business Results
36%lower employee
turnover
10%higher employee
engagement
25%higher revenue
per employee
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3
Yet, Many Initiatives Fail to Meet Expectations
48% of executives say
performance processes are
‘weak’ in improving
development and driving
business value
Deloitte
71% of organizations say
performance management
needed improvement
even re-invention
Brandon Hall
66% of employees say the
performance review process
interferes with their
productivity
CEB
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4
Key Reasons Why Initiatives Fail
REAR-VIEW MIRROR
Too much time is spent on evaluating past performance
and not enough impacting future performance
REACTIVE
Performance discussions happen when it’s already too
late to course correct
RIGIDA one-size-fits-all process makes it difficult to adapt to
organizational and cultural diversity
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5
Key Reasons Why Initiatives Fail
Assessment
Goals
Ratings / Rewards
Performance DocumentEmployee Goal Plan
Goal
Goal
Goal
Goal
Assessment
Goals
Performance Document
Start of year Mid year End year
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6
What do these companies have in common?
6
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7
Back to Basics: The Real Purpose of Performance Management
Performance
Management
Help HR Make Better
Workforce Decisions
Accurate Complete Assessments Ongoing Simple Assessments
Help the Business Improve
Employee Performance
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8
Back to Basics: The Real Purpose of Performance Management
Assessment
Goals
Ratings / Rewards
Performance DocumentEmployee Goal Plan
Goal
Goal
Goal
Goal
Performance
Achievements
Performance
Goals
Define work
activities
based on goals
Conduct
ongoing
meetings Update
activities
Log
Achievements
Review
Achievements
Ongoing goal and activity alignment,
coaching, and feedback
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10
How Do We Deliver Performance Management
Performance Assessments
Performance Reviews
Calibration
Team Rater
360° Assessments and Feedback
Writing and Coaching assistant
Goal Management
SMART Goal Wizard
Goal Library containing 500+
SMART goals
Goals cascading
Track goal status, progress and
probability of success
Mobile Goals
Continuous Performance
Management
Activities and achievements tracker
Simple feedback and coaching
Ensure work aligns to objectives
Live summary of achievements
Track and remind one-on-ones
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11
Continuous Performance Management
Capabilities
Get the feedback
needed to succeed
• Document progress and prioritize
work based on performance goals
• Capture and share performance
achievements with manager
• Lightweight, simple, and mobile
Employees
Provide regular and effective
guidance to employees
• Get a complete view into what the
team is working on
• Get structure to facilitate 1:1
discussions
• Share simple and regular coaching
with employees
Managers
Ensure performance
conversations happen
• Track how often one-on-ones
happen in your organization
• Remind employees and managers
to have performance conversations
• Give managers basic guidance on
how to do performance coaching
HR
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 12
Continuous Performance Management
Employee view – Get the feedback and coaching they need to succeed
• Add, edit, activities and
achievements - ensuring
they align to goals
• Additional topics to aid 1:1
discussions
• Easily update managers
and get immediate
feedback
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13
Continuous Performance Management
Managers view - A simple way to improve engagement and performance
• More visibility and insight
into employee activities and
accomplishments and how
they relate to goals
• Leverage insight during 1:1
meetings for more relevant
coaching and guidance
• Use captured achievements
throughout the year to more
easily prepare formal
assessment
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14
Beyond CPM - Leverage badges for informal recognition
1
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Beyond CPM - Add HCP in the mix for innovative apps
1
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 16
Back to Basics: The Real Purpose of Performance Management
Assessment
Goals
Ratings / Rewards
Performance DocumentEmployee Goal Plan
Goal
Goal
Goal
Goal
Performance
Achievements
Performance
Goals
Define work
activities
based on goals
Conduct
ongoing
meetings Update
activities
Log
Achievements
Review
Achievements
Ongoing goal and activity alignment,
coaching, and feedback
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 17
Back to Basics: The Real Purpose of Performance Management
Assessment
Goals
Ratings / Rewards
Performance DocumentEmployee Goal Plan
Goal
Goal
Goal
Goal
Performance
Achievements
Performance
Goals
Thank you
Stefan Van der Wilt
Sap SuccessFactors presales expert
Mail: [email protected]
Cell: 0032 499 567 463
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