NHRMA Conference - September 27, 2017

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1 NHRMA Conference - September 27, 2017 Presented by Cindy O Neal, MS, SPHR, SHRM-SCP Sr. Director of Human Resources The Center - Orthopedic and Neurosurgical Care

2 Which item would help you to help your employees be more successful? 2

3 Who loves performance reviews?

4 Art imitating life.

5 Uh, yes, I m ready for my evaluation.

6 I thought we d save time on your performance review by moving to the 20 th floor ledge now.

7 Before we begin your performance review, I took the liberty of ordering you some comfort food.

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9

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11 What is the underlying purpose for conducting annual performance reviews? To help individual employees be as productive as possible.

12 Great for widget-makers Performance reviews are a hold-over from the industrial revolution Easy to measure productivity in a factory.

13 Not so great for everyone else Hard to measure what office workers do Exceeds vs. Meets vs. Needs Improvement? How do we decide? Most ratings are subjective Even objective ratings are often subjective Establish a new on-boarding program by June Decrease error rate by 10%

14 What s wrong with traditional performance reviews? Anxiety provoking for both manager and employee. Not enough focus on dialogue. Boss has already decided what to say. Raises announced at the review? $$ is all they hear.

15 You re out here because you re supposed to receive a performance review? I m out here because I m supposed to give one!

16 Too much focus on the score Most ratings are subjective What s the difference between 3 vs. 4? What about 3 vs 3+? All they hear is their score

17 What else is wrong? Goals change But how many managers take the time to sit down and establish new goals? We often incentivize people to work on the wrong goal.

18 And what ELSE is wrong? Grade Inflation A poor score makes the employee unhappy which lowers their productivity. Which makes the supervisor look bad So it s easier to inflate the score

19 Let s shift the focus From Documenting the past Rationalizing a score To How can we help you be more successful?

20 Let s do some research: What do other s think?

21 Performance Management is Broken Ranking- and ratings-based performance management is.. Damaging employee engagement Alienating high performers Costing managers valuable time Leading organizations are scrapping the annual evaluation cycle and replacing it with. Ongoing feedback and coaching Designed to promote continuous employee development

22 Link to Performance Management is Broken dup-us-en/focus/humancapital-trends/2014/hctrends-2014-performancemanagement.html

23 IBM is Blowing up Its Annual Performance Review (Feb 2016) Old system: Goals change end up in an irrelevant discussion There was one score - people got sort of obsessed by that. Asked employees for ideas (all 380,000!) Want more frequent feedback New system: Shorter term goals Quarterly feedback from managers

24 Link to IBM is Blowing Up Its Annual Performance Review ibm-employee-performancereviews/

25 Harvard Business Review: Reinventing Performance Management (April 2015) We need something focused on fueling performance in the future rather than assessing it in the past. Assessing someone s skills produces inconsistent data. Objective as I may try to be in evaluating you on, say, strategic thinking, it turns out that how much strategic thinking I do, or how valuable I think strategic thinking is, or how tough a rater I am significantly affects my assessment of your strategic thinking.

26 Link to Harvard Business Review: Reinventing Performance Management (April 2015)

27 An IBM exec says Performance appraisals are very expensive, complex systems for making people unhappy.

28 And more links. Get rid of the performance review Wall Street Journal Silverlink Train Think Tank: Fix the workplace, not the workers 600/Think-Tank-Fix-the-workplace-not-theworkers.html

29 Finding a different model Lots of articles about getting rid of traditional reviews Not many how to resources

30 Atlassian s Big Experiment with Performance Reviews Australian based software company Let us be your guinea pig m/story/atlassians-big-experimentperformance-reviews

31 Atlassian s Key Innovations Replace traditional review with a more lightweight continuous model Weekly one-on-one s were already happening Dedicate one discussion a month to a coaching topic Created conversation guides to help facilitate conversations Bite-sized chunks of discussion No exact rating Shift focus to a good and honest conversation No numerical scale Axis for how often have you stretched and exceptional performance Create software to support the new model

32 Our challenges with the Atlassian model We are not a software company Had to make tracking of 12 monthly conversations manageable for 200+ employees Time-strapped supervisors Asking supervisors to meet with every employee every month wasn t realistic for us Time-strapped CEO Who will meet monthly with the top managers? We wanted an even more employee driven, forward-looking model

33

34 Our goals for a new system Bring people together to invite, accept and offer feedback. Increase trust and reduce fear/anxiety. Be a tool to help supervisors coach their employees to be more productive. how do we do that?

35 Starting to change Got buy-in from top management Got buy-in from supervisors Invited to a meeting to help us shape and design a new way of providing performance feedback and coaching. Got buy-in from staff Invited staff to be part of a focus group Everyone was welcome, few came.but They knew change was coming They had an opportunity to participate

36 What about documenting poor performance? Valuable member of the team. I d rather have NO documentation or reviews than have this in the file of a poor performer. Performance issues will be handled outside of the performance coaching system.

37 What will we base pay increases on? What would YOU base it on?

38 I ll bet you don t need a score to tell you Who works hard Who has good attendance Who goes above and beyond Who would be hard to replace X-Factor

39 Teach Supervisors to Coach vs. Review Let s teach a kid to swing a bat and hit the ball Document the past = Performance Review You struck out 12 times. You only got on base twice. You need to improve. Focus on success = Performance Coaching Keep your eye on the ball. Bend your knees. Watch the bat hit the ball.

40 Teach supervisors one-on-one basics and how to have a conversation Supervisor s asked What do we talk about? How was your weekend? Family? Kid? Pet? Can I really say that??? One-on-ones Regularly scheduled Take notes and follow up Give them tools Template List of questions or talking points

41 Link to The Basics of Effective Oneon-Ones content/uploads/2012/03/one-on-one- Meetings-Template.pdf

42 Quarterly One-on-One Form How are things going? Weekend, family, pets, hobbies, etc Team Member Update Take notes from their 10 minutes Manager Update Prepare notes for YOUR 10 minutes Any news or highlights to share with the team? What is the status of? Any positive/corrective feedback? Looking Ahead Career/Growth/Development What would you like to do more or less of? What support do you need?

43 What should I talk about? Tell me about what you ve been working on. Tell me about your week what s it been like? Tell me about your family/weekend/activities. Tell me about any road blocks. Are you on track to meet the deadline? What can you/we do differently next time? Where do you think I can be most helpful? How are you going to approach this? What are your thoughts on these changes? What do you think about it?

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45 Major Changes We Made No rating system Employee driven Completion of the form and scheduling the meeting is driven by the employee (but supervisors do follow up) Graph used to plot perception of performance General Performance doing what is expected of me and getting the job done Stretch - learning new things, stretching your skills, improving processes, taking on a challenge

46 Annual Performance Coaching: Self Reflection 1. Reflections on your success Note achievements, successes, or things you are most proud of since your last reflection. Their memory vs. supervisor memory Let them share and be proud (vs being told what they accomplished)

47 Annual Performance Coaching: Self Reflection 2. Keys to Success Which two do you exemplify most consistently? Give examples. Which one would you most like to improve on? Explain plan for improvement. Compassion Ethics New Opportunities Teamwork Efficiency Recognition

48 Annual Performance Coaching: Self Reflection 3. Reflections on your overall performance What do you enjoy most about your job? What areas of performance would you like to improve in order to be more effective? What would you like to do more or less of? Are you interested in different or additional duties, responsibilities and/or training opportunities?

49 Annual Performance Coaching: Self Reflection 4. Looking Ahead Setting goals helps us to grow and leads to self-improvement. What objectives or goals would you like to strive for during the next year? What can your supervisor do to help you be more successful, work more effectively and/or support your goals?

50 Annual Performance Coaching: Self Reflection 5. Where do you see yourself? Place a dot on the two lines below indicating where you see yourself when reflecting on the last year based on these two scales.

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52

53 Optional for Upper Management Already have regular one-on-one s, lots of discussion time and feedback Some people want more formal feedback Once a quarter, they are invited to participate in formal performance coaching

54 Quarterly invitation to top mgrs As professionals, we all need to take ownership of our own professional growth Getting feedback is a valuable tool you may be getting enough If you want more, you are invited to participate Voluntary for upper-management only You are responsible for your own professional growth

55 Adjustments after a year This line... Replaced this graph

56 Other changes Quarterly One-on-one forms ( chirping crickets ) Quarterly forms x every employee = too much paperwork It s still a useful tool Good conversation tool for supervisors Good reminder to get to know people

57 Overall Results: Performance Coaching is better than performance reviews More meaningful conversations Less intimidating People don t hate it they actually do it! Surprisingly thoughtfully completed by employees Goals? Future? Many people are happy just the way things are Opportunity to talk about Keys to Success People pay attention to what the company pays attention to

58 Future ideas Let people choose to participate or not? Is that a good idea? How would that work? Reward (or penalty) based on participation?

59 Future ideas Implement monthly or quarterly 1-on-1 conversation topics What would be a good company-wide topic? Ideas for conversation starters?

60 Aha moment..

61 Advice to Others Adapt the model to fit your culture Invite input from ALL who want to be involved Promotes buy in And they may have a great idea! Be willing to make adjustments along the way Admit up front that this is new and ask for feedback

62 WIIFM? Helping staff to be more successful Helps your company grow Creates a positive work environment Will help you feel better: At work At home and play Happy (and successful!) employees make MY life easier

63 Performance coaching focuses on: Achieving success Not documenting the past We are all responsible for each other s and remember success.

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