Innovation & Performance Management

Transcription

1 Innovation & Performance Management Addis Ababa, December 2013 Innovation & Performance Management 1

2 Venture Teams Targeted Placement Assignment Volunteering Encouraging Risk- Taking Encouraging Adoption Peer Evaluation Innovation Auditing HR Planning Performance Appraisal Reward Systems Career Management Freedom to Take Risk Freedom to Fail Balancing Individual & Team Reward & Innovation Recognition & Performance Management Dual Career Tracks Continuous Education Leading by Example 2 From Gupta & Singhal

3 Contrary to popular perception, success does not appear to be determined by a company s R&D budget. Research has consistently shown that there is no statistically significant relationship between financial performance and innovation. Instead, studies strongly show that the most successful corporate innovation strategies are the ones that predominantly focus on people and human capital. HR as a driver for organizational innovation KPMG HR Transformation Center for Excellence 1 Conference Board, CEO Challenge Economist Intelligence Unit: Fertile Ground: Cultivating a talent for innovation. February The Global Innovation 1000: How the top innovators keep winning. Booz & company, 2010 Innovation & Performance Management 3

4 Key HR drivers for organizational innovation (KPMG) Performance Management - Consistent signals about expectations Reward & Recognition Encouraging the development & sharing of ideas (including one that might fail) Talent Management for Individuals Focus on skills & behaviors required for Innovation Talent management for teams Breaking down silos & encouraging resource sharing Talent management for leadership Horizon scanning & dissatisfaction with the status uo Identifying critical roles -Identify roles that disproportionately drive innovation value & develop the people to fill them Organizational design Structure, Processes & Boundaries to encourage sharing and crosss-fertilization Internal communication - Leverage technology to encourage cross organization networking & collaboration Change management - Facilitate the implementation of new working practices that drive innovation Innovation & Performance Management 4

5 NSW Public Service Commission Creating an Innovative Public Sector From.To Incremental.. Radical Creative Conventional Chaotic.Structured Whole Sector..Agency-Specific Leader-Driven Team-Driven Reactive Proactive Citizen-Focused.Operation-Focused Concept-Focused..Implementation-Focused Innovation & Performance Management 5

6 Barriers to Innovative Practices (NSW PSC) Leadership Lack of commitment & risk aversion People & Work Practices Recruitment, capability, lack of delegation Culture Risk aversion, business-as-usual, top-down, bureaucratic layers Communications & Engagement Absence of network channels, silos Resources Absence of dedicated R & D funding Technology Usual IT shortcomings + absence of shared service options Innovation & Performance Management 6

7 Forced Distribution & Performance Management (Survival Trumps Creativity) Views differ on ideological lines. However, ground swell of evidence and opinion is that narrow application of Forced Distribution over time triggers unintended consequences, including: Top 20% Develop and Advance Bottom 10% Fire Difficulty of controlling for subjectivity in assessing performance Actions do not fit the rhythms of traditional public sector career paths Repeat use destabilizes the middle of the bell curve staff cohort And survival imperative places onus on achieving known targets rather than being innovative: it fosters compliant behavior Innovation & Performance Management 7

8 Typical Public Sector Performance Ratings Distribution Left unchecked, ratings distributions creep upward, corrupting rating definitions ( fully satisfactory becomes code for underperforming ) and compresses effective rating range. Many factors are play, including: The PMS lacks teeth : there are no genuine consequences for superior or inferior performance Managers lack incentive to pursue underperformance or recognize truly innovative contribution Maintenance of team morale and comity is more important than differentiating individual performance Innovation & Performance Management 8

9 Getting Rid of the Performance Review: Culbert 10. Everybody hates giving them and getting them 9. They're not objective. 8. They prevent employee improvement. 7. They destroy teamwork 6. They keep employees from offering smart ideas. 5. They don't help with lawsuits (Culbert s operating domain is very much the US private sector) 4. They distort discussions about pay. Innovation & Performance Management 9 3. "Improvements" to the review only do more damage.

10 Performance Management: Myth of the Dispassionate Manager; Reality of Inherent Subjectivity of Knowledge Work Evaluation Institutional Inertia Short-term Supervisor-Subordinate Relationship Relationships & Consequences of Rocking the Boat Symbolic/Rhetorical Support Only Results Framework: Ends rather than Means The Paradox of Managerial Reputation Specter of the Grievance Process Innovation & Performance Management 10

11 A counter-intuitive proposition: people are at their most innovative when they work within existing constraints, applying knowledge they already possess Thinking inside the Box Subtraction Division Multiplication Task Unification Attribute Dependency From DREW BOYD & Innovation & Performance Management 11 JACOB GOLDENBERG Inside the Box: A Proven System of Creativity for Breakthrough Results

12 Shades of Innovation & Replication Originality & Scope Lead Time Impact Innovation & Performance Management 12

13 Successful Innovation in Public Service Delivery depends on Adequate Appreciation and Performance Management of at least Three Facets of Change: Originality & Sweep The extent to which the innovation is new and untested in an absolute sense or an attempt to replicate or expand the scope of an existing approach or public service Impact How extensively or deeply the innovation will affect the client system number of citizens reached, improvement in quality of service or community prosperity, etc. Lead Time How long it will take for results to be detected and capable of assessment The Performance Management System must be Customized to Reflect the Key Features of the Innovation Innovation & Performance Management 13