Performance Management Stories from the Front Lines

Transcription

1 Performance Management Stories from the Front Lines May 23, 2017 Christina Rasieleski, Lead Advisor Talent Management & Leadership, Bersin by Deloitte, Deloitte Consulting, LLP Dean Carter Vice President, Human Resources and Shared Services, Patagonia, Inc. Michael Lopez Head of HR and Communications, GAP Inc., Athleta

2 Download the IMPACT Conference App 1. Head to the Google Play or App Store and search 'Bersin by Deloitte IMPACT 2017.' 2. Sign in with the you used to register and the app password: IMPACT2017. See our full list of attendees, and begin digging into the week s content. The app features the complete schedule of events, site map, speaker bios and more! IMPACTreg@deloitte.com with any app questions. Join Follow the #IMPACTHR conversation on Twitter to stay in the know on all things IMPACT. Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 1

3 Contents The fun begins here Regenerative Performance at Patagonia Questions & Answers Welcome Close Disrupting Work Stories from Athleta s Front Lines Join the conversation on Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 2

4 Global forces are coming together to create disruptive change in how work gets done Numerous demographic, societal, and technological forces are converging to reshape the modern workplace, workforce, and ways of working 18% New Social Contract of respondents don t formally measure engagement Attracting and retaining top talent requires employers to provide employees with rapid career growth, a compelling and flexible workplace, and a sense of mission and purpose at work. 77% Speed of Change are restructuring their organization or recently have Rapid introduction of disruptive business innovations have increased the need for agile, and flexible teams with individual and teambased objectives and goals that can be revised throughout the year. Expansion of Technology Workforce Demographics only9% of respondents feel ready for a shift to digital HR Sources: Talent Strategies for Growth Markets & Deloitte Global Human Capital Trends 2016 Technology s reach has extended deep into organization talent strategies to change everything from attracting talent to monitoring performance. only 36% offer career paths to facilitate career mobility Millennials in the workforce, changing expectations of work-life blend, and the global nature of business have changed how and where employees want to work. Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 3

5 regenerative performance dean carter hr. finance. legal. Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 4 4

6 40 years Private/Founder ~1B 2000 Global Direct/Wholesale Apparel/Food/Fund $$$$ 5% / ~100% 1% for the Planet 100% Black Friday Integrated On-site Childcare 100% Paid Medical PT Paid Mat/Pat Leave Travelling Child Enviro Internships Protest Training & Bail why change? Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 5 5

7 a performance culture that thrives on unconventional approaches, transparency and collaboration Patagonia Reason for Being Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis. - Patagonia Mission Statement Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 6 6

8 a performance management process that was traditional, rigid, bureaucratic and dreaded. Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 7 7

9 Fit to Culture more agile regenerative system Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 8

10 datify to multiply and unlock new learnings. Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 9

11 datify to multiply and unlock new learnings. democratized and personalized now. Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 10

12 datify to multiply and unlock new learnings. democratized and personalized now. socially powered and transparent. Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 11

13 datify to multiply and unlock new learnings. democratized and personalized now. socially powered and transparent. neuroscience fixed vs. growth mindset Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 12

14 clean and intuitive tool design improve performance Growth & Development Reductions In Force Pay Increases Promotions Exits for Performance annual performance review and rating Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 13 13

15 In July 2015 leveraged new learnings and technology inspired by culture aligned leadership found innovative partner Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 14 14

16 regenerative performance transparent goals annual targets/quarterly stretch no annual performance ratings crowd-fueled feedback employee-led QTR check-ins democratized aligned compensation growth focused Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines

17 yearly target goal which mountain? regenerative performance at patagonia

18 yearly target goal quarterly stretch goals milestones to get there with some stretch regenerative performance at patagonia

19 yearly target goal quarterly stretch goals crowd-fueled feedback Focused: On a Project, Event? General: Enabling or Derailing Key Behaviors? regenerative performance at patagonia

20 yearly target goal quarterly stretch goals crowd-fueled feedback end of quarter check-in employee led manager guides insights & growth mindset regenerative performance at patagonia

21 re-thinking comp 12 month view annual goals one-time reward contribution = $$ single calibration How did I contribute this year? Merit Matrix bonus base on-going view market based skills to market 2 X/ year window priority tool How do my skills and base pay compare to 20 market? Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 20 20

22 Patagonia Performance Eco-System yearly target goal quarterly stretch goals crowd-fueled feedback Annual Reward end of quarter check-in Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 21

23 Building Org Muscle Goalsetting: transparent yearly target quarterly stretch Check-ins: preparing facilitating quarterly/annual Crowd-fueled feedback: requesting giving applying Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 22

24 early insights at patagonia accelerated majority adoption of social goals: - sears 2 quarters / patagonia 2 weeks transparency embraced: 98% for personal goals check-in conversation preferred (by majority of employees over the old performance review) check-ins help: employees who check-in say - they get more quality feedback - they know what s expected of them stretch goals & check-in predicted results: - higher levels of yearly goals completion - higher average annual bonuses awards differentiation: bonus distribution followed performance what we have seen Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 23 23

25 impact at sears request = 3 X s more action 5 until constructive 10 until intuitive instant & agile behavior change millennial vs. boomer adoption increase in performance month 3 group a 8% Sales/Hr group b No Change results we expect to see again Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 24 24

26 personalized, self-driven learning tied to LMS Action Transparency Coaching Curated Content real influencer visibility where we are now Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 25 replicate success 25

27 FROM hours of prep & writing up reviews >1.5 hours of conversation a year 4-8 pages of review documentation low value recognition minutes of prep & documentation 4+ hours of conversation a year agile performance improvement high value recognition Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines

28 Align Leadership Fit to Culture Manage the Ecosystem Build Organizational Muscle Datify to Multiply Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 27 27

29 Performance Management Stories from Athleta s Front Line Michael Lopez Head of Human Resources Athleta (division of Gap Inc.)

30 Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 29

31 Copyright 2017 Deloitte Development LLC. All rights reserved. Performance Management Stories from the Front Lines 30

32 We re Game Rapid Growth Position the brand to quickly scale and capitalize on growth opportunities in the performance apparel market. Evolve or Die Insanity is doing the same thing over and over again and expecting different results. Ignite Potential Retention Career Growth Learning Agility Customer Focus Business Results

33 Stepping it Up GOODBYE, Fixed Mindset Annual Reviews/Goals Differentiated Merit Annual Recognition & Incentives Super Stars HELLO, Growth Mindset Quarterly Touch Bases & Goals Market Competitive Base Pay Monthly/Quarterly Rewards & Incentives Play & Win as a Team

34 Solid Choices- 2 Year Strategy INVEST in Culture Quarterly Accountability Growth Mindset Talent Routines Pay + Social Capital Variable Pay + BIG Upside Base Pay Strategy Raise Table Stakes

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36 OWN IT What s your WHY Senior Leadership (PM + Comp)*Culture = Success Change Management Excellence vs Perfection

37 QUESTIONS COMMENTS

38 Questions? Christina Rasieleski Lead Advisor, Talent Management & Leadership Bersin by Deloitte Deloitte Consulting, Dean Carter Vice President, Human Resources and Shared Services Patagonia, Inc. Michael Lopez Head of HR and Communications GAP Inc., Athleta

39 About Deloitte As used in this document, Deloitte means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the Deloitte Network ) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. Copyright 2017 Deloitte Development LLC. All rights reserved.