Making Performance Reviews a Strategic Imperative
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1 Performance Management Overview Making Performance Reviews a Strategic Imperative Wendy Yeager Senior Solutions Consultant wyeager@successfactors.com
2 What do all of your companies have in common? CEO Vision, Mission, Strategy Objectives/Goals Financial Customer Employees
3 Two Types of Capital One is easier to measure than the other Financial Capital ($) Workforce value = Salary + Benefits (Payroll) Human Capital ($) Workforce value = Skills, Experience, Productivity, Collaboration, Execution, Engagement, and Results 2
4 They all have one of these It s just a matter of vision Performance
5 Agenda Common Challenges Strategic Performance Analysis Overview/Demo Questions
6 The Bad News FACT: High Performance 95% of employees don t understand their company s strategic goals Balanced Scorecard: Norton/Kaplan Corporate Strategy Board: Measures that Matter Low Performance
7 The Bad News FACT: High Performance 50% of the average employee s time is spent on nonproductive work Balanced Scorecard: Norton/Kaplan Corporate Strategy Board: Measures that Matter Low Performance
8 Worse FACT: High Performance 71% of employees say that when they do a good job, their performance is not rewarded Watson Wyatt: Work USA Study Low Performance
9 Worse FACT: High Performance 86% of the workforce is disengaged Watson Wyatt: Work USA Study Low Performance
10 Worst Confusion. Fear. Decision Paralysis.
11 Strong Performers Have Broader Usage of PM Systems Performance Management System in Use 67% stronger performers 28% Weaker Performers Reviewing Performance More than Annually 63% Stronger performers 22% Weaker performers Source: Berggren & Fitz-enz, How Smart HCM Drives Financial Performance, 2006 Click here to view report 10
12 Strong Performers Align Goals More than Half of All Employees Goals Aligned 44% Stronger performers 0% Weaker performers % Aligned Goals at the Managerial Level 46% Stronger performers 18% Weaker performers Source: Berggren & Fitz-enz, How Smart HCM Drives Financial Performance, 2006 Click here to view report 11
13 Look who s talking. It s not just HR. 12
14 Analyze your ability to Analyze Financial Customer Workforce ERP CRM 13
15 Optimizing Workforce Performance
16 Overview Integrated Suite of Organically Built Performance & Talent Management Applications 44+ Million Users 2, Countries 2,300+ Customers 60+ Industries 870 go-lives in Languages Higher Performance Through People Performance
17 Solutions for All Industries, Sizes, and Geographies Electronics Telecom Financial Services ASIA/ PAC Non-Profit Education Retail Construction Chemicals Healthcare EMEA Real Estate Insurance High Tech Energy & Utilities Aerospace & Defense Manufacturing Transportation Services Membership Organizations Life Sciences N.A. Media Consumer Services Food Services Travel & Leisure Publishing Automotive Agriculture Pharma Consumer Goods Computer Hardware Professional Services Environmental Services Banking Metals & Mining Security Products & Services Small Medium Enterprise Computer Software Advertising Government Size of Company
18 Integrated Applications Who is aligned? Who are our high performers? How do we identify best-fit candidates? Are we rewarding top performers? Who are our future leaders? How do we develop our people?
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