Driving Performance Through Increased Employee Engagement Dr. Rose Mueller Hanson, PDRI October 23, 2012
Today s Presenters Dr. Rose Mueller Hanson Director of Leadership and Organizational Consulting PDRI Allan Schweyer President TMGov.org PDRI, an SHL Company
Introduction Why do organizations spend so much effort but get so little value out of their performance management systems? In this session, we will discuss three practical strategies for using a new approach to performance management that drives high performance and engagement. What Should You Learn? The problems with traditional performance management that restrict impact and effectiveness Pitfalls in approaches to improve performance management Four clear and practical steps to transform performance management and link it to engagement.
Agenda 1. Using performance management (PM) to drive high performance 2. Link between engagement and PM 3. Improving PM & engagement in your organization 4. Questions and answers
What We Hope PM Will Do Align individual actions to mission Help employees learn and grow Improve employee-manager communication Improve individual and organizational performance
Poll #1 To what extent does your performance management system drive high performance in your organization? 1. Not at all 2. A small amount 3. A moderate amount 4. A great deal 5. Completely
How PM Is Typically Used Hold people accountable for achieving results Provide basis for pay and other rewards Enable dealing with poor performers Provide legal documentation
Does PM Really Do These Things? In 2011 Federal Employee Survey Only 28% agree that pay raises depend on performance Only 35% think poor performers are dealt with effectively Only 40% believe performance differences are recognized in a meaningful way Performance Management (PM) seen as a WEAK LINK in human capital management
Similar Views in Private Sector April 19, 2010 Yes, Everyone Really Does Hate Performance Reviews It's time to finally put the performance review out of its misery. This corporate sham is one of the most insidious, most damaging and yet most ubiquitous of corporate activities. Everybody does it, and almost everyone who's evaluated hates it. It's a pretentious, bogus practice that produces absolutely nothing that any thinking executive should call a corporate
Where Have We Gone Wrong?
Why PM Fails to Deliver Poor performers not held accountable PM activities only happen when required check the box mentality Employees unclear about goals and priorities Managers do a poor job of setting clear expectations and providing feedback Managers lack time and skills needed to be leaders
In Other Words We fail to have critical conversations needed to drive performance Aw shucks Fabulous Performance Exemplary Results And love the tie
Past Attempts to Improve PM Different types of criteria Objectives, results, individual competencies, behaviors, contributions Different rating scales 7 points, 5 points, 3 points, developmental, pass fail only Different raters Supervisors, peers, customers, and/or self assessments Different types of goals SMART, HARD, cascaded, team, individual, or none
What Have We Achieved? Created increasingly burdensome systems Failed to ensure managers and staff see value
What Should We Do Instead? Shift Our Mindset PM not an HR activity It s How we get everything done in life What distinguishes great managers Linked to engagement 15
High Performance, High Engagement Organizations Have Managers Who: Make expectations clear Help find sp solutions to problems Play to employees strengths Discuss strengths & development needs Provide ongoing, informal feedback Corporate Leadership Council. (2004) Are all PM behaviors!
Google s Rules Employees Leave When: Don t see self in mission Don t like co workers Don t have good relationships with managers Good Leadership Effective Performance Management Higher Productivity; Less Turnover Google Study (2011)
How PM Needs to Change TODAY TOMORROW
Poll #2 What is the most significant barrier to improving performance management at your organization? 1. No motivation to change 2. Managers lack key leadership skills 3. Rigid IT system and/or HR process 4. No way to hold people accountable for change 5. Other
How Do We Get There? Motivate Change Lay Foundation Sustain Change Improve Conduct baseline assessment Communicate WIIFM Streamline formal system Revise PM training Establish PM as a habit Conduct ongoing engagement activities Hold leaders accountable Evaluate behavior change
Motivate Change Conduct Baseline Assessment Identify Gaps Gather Data on Current State Define Desired State ASSESSMENT PROCESS Key Behaviors Understand big picture Establish expectations Provide/seek feedback Develop via experience
Communicate WIIFM Motivate Change Key PM Behaviors How These Help Managers How These Help Employees Communicate Big Picture Employees can contribute more, reducing your work Increases engagement and results Expectations & Feedback Get things done with less rework Feel better about your contributions Develop Through Experience Accomplish more and succeed faster Grow, develop, and advance more quickly
Lay Foundation Streamline Formal System Stop Doing Cascading Goals Annual SMART Objectives Written Self Assessments Scale Back Rating scales/criteria Written narratives Link between PM and Pay Emphasize Setting Ongoing Expectations Providing Immediate Feedback Career Discussions
Lay Foundation Revise PM Training Make for everyone not just supervisors Teach behaviors/skills not just process Tackle barriers to change Give specific guidance for what to do on the job Follow up to sustain change
Sustain Change Establish PM as a Habit: 3 Conversations Individual Level Communication strengths and needs for improvement Barriers and how to overcome them Team Level Communication within and across teams Barriers and how to overcome them Career Conversations Achievements Performance in relation to role expectations Career goals and guidance
Sustain Change Ongoing Engagement Activities PUSH FAQs Weekly/monthly email with PM tips and techniques Success stories highlighted in newsletter Team meetings PULL Job aids/guides on SharePoint WBT on demand Associate/manager lunches Optional workshops on PM topics Peer coaching program
Improve Hold Leaders Accountable Quarterly pulse surveys Results to managers and senior leaders Monthly check ins
Evaluate Behavior Change Improve Before Lack of clarity about expectations and priorities Poor performance talked about but not dealt with Conflicts result in venting and gossip but no action Missed deadlines; work quality uneven Managers too busy for career guidance; new employees leave for better opportunities After Employees understand and can act on expectations/ priorities Immediate feedback provided; behavior improves Conflicts dealt with directly and relationships improve Clear expectations lead to high quality results on time Employees understand their options and proactively seek opportunities
Summary PM is fundamentally about building a high-performing organization Standard PA approaches don t really build high performance What does is improved day-to-day PM behaviors and engagement You can have a small but significant impact on improving PM Key is focusing on key PM behaviors Barriers exist but can be overcome
Q&A
Summary PM is weak link Most best practices don t work as intended Thank You! Fundamental mind shift needed: PM part of daily work Leadership skills most critical for success For more information, please contact: Rose Mueller Hanson, PhD 703 678 4043 Rose.hanson@pdri.com PDRI, an SHL Company