New Paradigm of Performance Management

Transcription

1 New Paradigm of Performance Management August 2017 Imagination at work.

2 Agenda GE Performance Management Journey Connecting Remuneration with PD 2

3 GE Performance Management Journey

4 GE Performance Management Journey Forced-ranking Performance Review Early 80s 2005 Differentiation rules ( ) Annual basis 4

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6 GE Performance Management Journey Forced-ranking Performance Review Early 80s rules Annual basis 5-rating Performance Review Performance-matrix Annual basis 6

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8 GE Performance Management Journey Forced-ranking Performance Review Early 80s rules Annual basis 5-rating Performance Review Performance-matrix Annual basis Performance GE 2016 onwards No rating Real-time 360 feedback Ongoing conversation 8

9 Growing Momentum to No-Rating n = 296 Source : CEB 2016 HR Agenda Poll 9

10 Reasons Core elements & cycle A view of PD@GE tool

11 PD with no Rating Why? 11

12 A Shift in Focus Performance Review Performance Development Twice-a-year discussions Backward looking Formal & routine activity, tend to be forgettable afterwards Classifying people into rating Ongoing feedback Focus on moving forward, reinforce, insights, coaching Less formal, conversation-setting, actionable 360 Not bound by rating 12

13 Core Elements Priorities Focus on the work that matters most to the customer. Touchpoints Insights Career Dialogue Ongoing conversation between manager & employee throughout the year. Giving & receiving feedbacks to & from colleagues on the contributions and behaviors (continue/consider) to increase effectiveness. An opportunity to reflect on performance, and discover new possibilities. Coaching Focus on performance and growth. GE BELIEF Customer determines our success Learn & adapt to win Empower & inspire each other Deliver results in uncertain world 13

14 Cycle JANUARY Priorities Touchpoint Manager & employee together: Set priorities aligned with customer outcomes fewer things better Discuss connection with organization goals Identify behaviors for effectiveness, impact Colleagues insights Ongoing Touchpoints Manager & employee together: Discuss contributions to priorities Set new/adjust priorities Incorporate career dialogue at the right time Share insights, provide coaching DECEMBER Summary Summary Touchpoint Manager & employee together: Review the hole year contributions, insights Create a brief summary Discuss learnings for coming years Move forward Measure Impact, Integrate with HR Processes Technology supports Can be done through computer, i-pad, or cellphone View organization goals Request & give colleagues insight, at anytime

15 A View of Tool Touchpoint 15

16 A View of Tool Summary 16

17 Connecting Remuneration with PD Reward decision process Salary increase & bonus guideline Budget control mechanism

18 Reward Decision Process Managers are provided with Performance factors and employee impact Decision Pay reference range & compa-ratio Budget to adhere to HR training and coaching Contribution to Priorities Impact on customers Demonstration of GE Beliefs Skills & competencies needed for development Reward decision (salary, bonus, development plan, etc.) Meritocracy remains a culture, performance differentiation is still expected Managers are trusted, empowered, and expected to consider multiple factors when making reward decisions 18

19 Salary Increase Guidance Compa-Ratio Zone EXAMPLE Green circle (below min) 75% 90% 90% 110% 110% 125% Red circle (above max) 0 4x 0 3x 0 2x 0 1x Lump sum The numbers above are the multiplication of Country Annual Salary Increase budget (e.g. 10%). There is no magic calculator! Managers are trusted, empowered, and expected to make salary increase decisions by considering individual performance and compa-ratio, as long as within the salary increase budget. 19

20 Bonus Guidance EXAMPLE Bonus Target % Business Multiplier % Individual Performance Annual Base Salary Bonus Amount Manager to decide. e.g. ranging 0 150% There is no magic calculator! Managers are trusted, empowered, and expected to make bonus decisions by considering individual performance, as long as within the bonus pool. 20

21 Budget Control Mechanism (Merit Increase) Budget utilization is controlled by Manager, Business Unit Head, HRM, and C&B. Total salary increase must be within the allocated budget. EXAMPLE OF MANAGER S VIEW 21

22 Budget Control Mechanism (Bonus) Budget utilization is controlled by Manager, Business Unit Head, HRM, and C&B. Total bonus payout must be within the allocated budget. EXAMPLE OF MANAGER S VIEW 22

23 No Rating: A Solution? Learn & Adapt to Win Strategic questions ahead: Where do we see PD bringing the most value to our business? What different behaviors will be shown after the introduction of PD? What are the most impactful actions to further unlock the potential of PD? 23

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