Designing a Competency Based Model for Performance Management. Presented by:

Transcription

1 Designing a Competency Based Model for Performance Management Presented by: April 11, 2013

2 Topics Why Performance Management? Trends Core of the Matter Three Common Options Is It Right for You? Lessons Learned 1

3 What is Performance Management? Method and process for accomplishing planned performance levels by an organization that involves: setting clear expectations; providing on-going communication and feedback; and creating partnerships between employees and supervisors for mutual success. 2

4 Why Management Performance? Do you have a Performance Culture? High Customer Satisfaction High Employee Engagement High Productivity Yes 61% 68% 71% 54% No 39% 32% 29% 46% High Collaboration Do you reward Performance? High Customer Satisfaction High Employee Engagement High Productivity High Collaboration Yes 74% 71% 74% 49% No 26% 29% 26% 51% Source: HCS,

5 Trends Ideas on performance management have proliferated into higher learning. More linkages between overall college funding and performance outcomes (ie. Illinois, Tennessee, Ohio). Greater emphasis on combination of educational attainment and performance (2012 survey of world class colleges found that 70% are at least experimenting with some form of pay for performance). 4

6 Motivation Motivators Outcomes Stimulus Results 5

7 Motivation Levels Enrichment Job Engagement Basic Needs 6

8 Core of the Matter Movement Compensation Philosophy Placement Range Desired Outcomes 7

9 Common Higher Ed Models Step hybrid model Open range model Competency-based model 8

10 Step Hybrid Ties movement in even increments to performance outcomes. Hybrids divide the range and combine the approaches to allow for steps while reaching full competency and open ranges after midpoint. Popular when operating in a competitive market and need to be more responsive. 9

11 Example Hybrid Step Tier T1 A B C 1 $ 35, $ 40, $ 45, $ 38, $ 43, $ 48, $ 42, $ 47, $ 52, $ 46, $ 51, $ 56, $ 50, $ 55, $ 60, Open Range Tiers Min Mid Max T2 $ 55, $ 62, $ 70, T3 $ 65, $ 72, $ 80, T4 $ 75, $ 82, $ 90, T5 $ 85, $ 92, $ 100,

12 Open Range Model Creates ranges and limits mobility to category of scoring. Requires market as well as performance maintenance to preserve the incentive. 11

13 Open Range Example Current Position HIGH AVG TOP Minimum Midpoint Maximum 12

14 Competency-Based Model Adopts a more talent-based approach that centers on what is needed, capability, and utilization or demonstration. Requires greater position depth and understanding Core competencies are basic characteristics, attributes or skills. (ie., verbal and written communication skills, analytical and critical thinking processes, independent judgment and time management) Job competencies are skills necessary to perform a particular job or work in certain occupations are referred to as job competencies. 13

15 Competency-Based Model Assumes that results arise from ability and motivation (effort). Because it takes both core competencies and job competencies to actually be a productive worker, competency-based performance reviews focus on three areas: core competencies, job competencies and the use of both to perform job assignments and duties. 14

16 Competency Example Capability Need Effort Desired Outcome Actual Outcome=Capability*Effort Performance Attainment=Desired Outcome - Actual Outcome 15

17 Steps and Phases Planning Determine Organizational Goals Design System (Method and Rewards) Change Management Implement Training Plan Improvement Methodology Monitoring Plan 16

18 Is It the Right Option? Organizational Needs Current Objectives Performance Culture Commitment Willingness to Change System, Resources, Execution ROI Threshold On-going Investment Monitoring 17

19 Lessons Learned Make performance a priority. Be ready with answers. Keep scoring simple. Make the system transparent. Require documentation. Require calibration. Training makes or breaks the system. 18

20 Questions Jeffrey Ling, PhD Evergreen Solutions, LLC