绩效管理及评估资料总集1(英文版)(11个pdf)

M a n a g i n g P e r f o r m a n c e A c h i e v i n g O u t s t a n d i n g P e r f o r m a n c e T h r o u g h a “ C u l t u r e o f D i a l o g u e ” If managers think giving annual performance reviews is like delivering a newspaper to a house with a growling dog, you have a problem. Spreading rewards should not be like spreading peanut butter. Dialogue aligns performance with goals. P A P E R W O R K I N G M a n a g i n g P e r f o r m a n c e This working paper is the product of research conducted by Katie Lemaire and Larry Reissman. Copyright 2002 Hay Group,Inc. All rights reserved. Creating a “culture of dialogue”2 Three keys to managing performance2 Achieve Radical Clarity Around Goals4 Without clarity, employees lack confidence in management5 Why clarity matters5 Narrowing priorities6 Getting buy-in at the top6 Establish Systems and Processes To Create Clarity8 What GDDS did8 Its about behavior change10 Creative ways to build a culture of dialogue11 “Hands-off” management means not being “on-message”12 Making Rewards Count13 Aligning rewards with goals13 Differentiating rewards14 Find new ways to differentiate merit pay16 Conclusion1 7 A c h i e v i n g O u t s t a n d i n g P e r f o r m a n c e T h r o u g h a “ C u l t u r e o f D i a l o g u e ” P A P E R W O R K I N G Peter is Chief Executive Officer for a medical supply multinational. His compa- ny had just crafted a new plan to counter competitive threats. It stressed the need to cut cycle time,concentrate sales on higher-margin products and devel- op new markets. All in all,this was a pretty classic,very sound strategy. Four months after circulating the plan,Peter did a “walkaround”to see how things were going. He was appalled.Everywhere Peter turned,people,depart- ments whole business units simply didnt “get it.” First surprise:Engineering. The group had cut product design time 30%,meet- ing its goal to increase speed-to-market. Good. Then Peter asked how manu- facturing would be affected. It turned out the new design would take much more time to make. Total cycle time actually increased. Our message is not getting through,Peter thought. Second surprise: Sales. The new strategy called for a shift emphasize high- margin sales rather that pushing product down the pipeline as fast as possible. But just about every salesperson Peter spoke to was making transactional sales to high-volume customers;hardly anyone was building relationships with the most profitable prospects. Sales is doing just what its always done,Peter thought. Worst surprise: Even his top team,the people who had helped him craft the strategy,was not sticking to plan. Peter asked a team member: “Why are you spending all your time making sure the new machinery is working instead of developing new markets?” “Because my units chief goal was to improve on-time delivery,”he answered. “But what about company goals?”said Peter. “We came up with a good plan and communicated it very clearly. But nowhere is it being carried out. Why?” The reason is poor performance management. But what does that really mean? It means that the leaders of the company from the CEO to the executive team to middle managers to shop-floor supervi- sors did not recognize the importance of gaining clarity of goals,discussing ways to accomplish those goals,and following through to make sure behaviors were aligned with desired outcomes. 1 Poor performance management means that the leaders of the company did not recognize the importance of gaining clarity of goals, discussing ways to accomplish those goals, and following through to make sure behaviors were aligned with desired outcomes. P A P E R W O R K I N G Leaders at many organizations make this mistake. They assume that because they understand the objective,everyone else will,too. It doesnt work that way. People dont get it. Imagine someone hitting a tennis ball. When the brain says “hit the ball,”it doesnt automatically happen. The message travels through nerve pathways down the arm and crosses gaps between the nerve cells. These gaps,or “synapses,”are potential breaks in the connection. If neurotransmitters dont carry the message across the gap,the message never gets through,or it gets distorted. C r e a t i n g a “ c u l t u r e o f d i a l o g u e ” Just like a nervous system,organizations also have gaps that block and distort messages. The gaps can be hierarchical,between boss and subordinate. They can be functional,between departments,for example. Or they exist between two peers who sit right next to one another. Crossing these gaps sounds sim- ple,but its not. The reason is that the “neurotransmitters”in organizations are human beings primarily executive team members,senior managers,middle managers and supervisors whose job it is to make sure that people do the right things. Doing what it takes to achieve alignment is very difficult. It is what management guru Ram Charan calls the “heavy lifting”of management, and its the key to effective performance management. As well see later,there is an important difference between companies that suc- cessfully align behavior with goals and those that do not. Companies that exe- cute effectively create a “culture of dialogue.” A culture of dialogue encourages pervasive two-way communications where individuals and groups 1) question, challenge,interpret and ultimately clarify goals;and 2) engage in regular per- formance dialogue to monitor behavior and ensure it is aligned with goals. T h r e e k e y s t o m a n a g i n g p e r f o r m a n c e A culture of dialogue doesnt happen instantly,any more than a fluid tennis stroke does. It takes practice,persistence and hard work. The three keys to managing performance effectively are: 2 Leaders at many organizations assume that because they understand the objective, everyone else will, too. It doesnt work that way. P A P E R W O R K I N G 1.Achieving radical clarity around goals. Many organizations think they send clear signals but dont. In some cases,managers subordinate broad strategic goals to operational goals within their silos. Thats what hap- pened with Peters top team. Elsewhere,leaders often have too many “top”priorities weve seen as many as 100 in one case which results in mixed signals and blurred focus. To enable effective performance man- agement,its important to winnow priorities down to a manageable num- ber as little as five. This is true for the organization as a whole,for each department,for each team and for each individual. 2.Establishing systems and processes to ensure clarity. Once goals are clear,organizations must create processes to ensure that people get the right messages. These processes include:budget and planning sessions; staff and team meetings to discuss goals;performance management meet- ings;and talent review sessions. Dialogue drives all these processes. Each represents a “transmitter opportunity,”where managers reiterate goals and monitor behavior to ensure its aligned with goals. 3.Aligning and differentiating rewards. Leaders must make sure rewards encourage behaviors consistent with goals,which sounds easy but isnt. Differentiation is about making sure that stars get significantly more than poor performers. But almost everywhere managers distribute rewards more or less evenly. Lack of effective performance dialogue is a key con- tributor to dysfunctional reward schemes. We list these three items separately but they are,of course,interconnected. Systems and processes depend on clarity from the top of an organization or the head of a department. Differentiation and alignment of rewards depend on managers using performance systems effectively. Dialogue is the glue that holds it all together. But not just any dialogue will do. It must be dialogue with purpose,focused on performance. Link to company valuation Companies that manage performance well General Electric comes to mind have higher market valuations. Why? Because,more and more,institutional investors view managements ability to execute as a vital factor influencing stock prices. 3 Once goals are clear, organizations must create processes to ensure that people get the right messages. P A P E R W O R K I N G Just a few years ago institutional investors relied almost exclusively on financial measures for company valuations. Now 35 percent of a market valuation is influenced by nonfinancial,intangible factors,according to a study by Ernst wont, because they find it uncomfort- able to give candid feedback;or,simply dont realize that successful execution will never happen without ongoing performance dialogue. Part of the solution to this problem is creating systems and processes that force performance dialogue. General Dynamics Defense Systems (GDDS) in Pittsfield,Mass.,is one company where creating such systems has contributed to dramatic results. From 1999 to 2001,attrition among its valued software engineers dropped from 20 percent to 2.4 percent. Union grievances dropped from 57 to zero,saving hundreds of thousands of dollars. And,best of all,earn- ings and profit margins doubled. W h a t G D D S d i d In 1999 the $200 million plus defense contractor challenged its employees to improve the companys negotiating leverage on bids,and thereby increase mar- gins and profitability. To accomplish this goal,senior management directed all departments to chase out costs,and created numerous processes to transmit the cost-cutting strategy down the managerial ranks right to the shop floor, which is where they felt many of the best cost-cutting ideas would originate. Carmen Simonelli,director of facilities and security,says his departments goal was to push labor costs five percent below budget,with a “stretch”goal of six percent. That was ambitious given that direct applied labor costs had been running 10 to 15 percent over budget. But Simonellis team slashed applied labor hours to an unthinkable 20 percent below budget. Annual savings amounted to about $440,000 on a $2 million budget,or nearly $10,000 per worker. 8 Good execution only happens when employee behavior is aligned with goals. W P A P E R W O R K I N G How did they do it? The key,Simonelli says,was the processes the company put in place to enhance dialogue and carry the message to the shop floor. For example: The Learning Map The company made it easy for employees to understand its broad goals by cre- ating a “learning map,”which graphically outlined how each department and team linked directly to core objectives. All employees saw at a glance how their jobs fit in. Supervisors and assemblers in Simonellis group,for example, could readily see that by reducing applied labor hours in a project,GDDS could increase margins,shorten delivery schedules and raise the chances for winning new contracts. The Scorecard Managers and direct reports at GDDS meet one on one to create Scorecards, which set five to seven personal annual goals. For example,the goals for ship- ping and receiving supervisor Tom Molleur included plans to capture all incen- tive payments for early delivery and to cut direct costs five percent. Once a manager and subordinate reach agreement goals,they both sign the Scorecard as if it were a contract. From the workers perspective,this was a dramatic shift,says Newell “Tom”Skinner,at the time director of product delivery. “In the past we just set the goals and beat up employees to try to make them,but they probably didnt even know why we had that goal in the first place.” Scorecards are “transmitter opportunities”that clarify expectations and link day-to-day activity to goals. And they work. Molleurs group ended up cutting direct costs by 50 percent not just five percent. What was the key thing that made it happen? Molleur points to the dialogue workers engaged in at his weekly progress meetings. When the group was behind schedule,Molleur used the meetings to make sure the workers understood,through the Learning Map and Scorecards and other processes,how meeting or beating delivery sched- ules could increase competitiveness and win more contracts. Top management did simple things to make sure messages were getting through. For example the president held monthly “pizza meetings”with every- one whose birthday fell that month. At these “transmitter opportunities,”he would ask attendees to list their top three goals,and their bosstop three goals. Within months,everyone could answer the questions. 9 “In the past we just set the goals and beat up employees to try to make them, but they probably didnt even know why we had that goal in the first place.” P A P E R W O R K I N G In a culture of dialogue,extraordinary things happen. Skinner extended an open invitation to any employee who wanted to attend his weekly budget meeting with his supervisors. One day an assembler showed up and said a part design was forcing assemblers to work by hand with “dozens of tiny screws,lock washers and nuts.” Skinner had the assembler meet with process control engineers for a redesign. The result:a job that had taken 12 hours was cut to four. “The best ideas come from the people doing the job,”says Skinner. Once the “conversation”got started,it took on momentum. Soon,people were coming into Skinners office without waiting for the weekly meeting to discuss misalignment of goals and behavior. Workers themselves were creating trans- mitter opportunities! I t s a b o u t b e h a v i o r c h a n g e The processes GDDS installed ultimately changed behaviors. The message got through. But,like a tennis stroke,it didnt happen quickly or automatically. It took coaching and practice. Sometimes you have to get it wrong,then make corrections through feedback and dialogue,before you get it right. One North American insurance company embarked on a new plan to expand sales with existing customers. The presi- dent created nine core value statements and broadcast the ideas repeatedly organization-wide. Soon,every manager could recite them by heart. Employees even had cards with the core-value statements right at their desks. The message,however,wasnt sinking in. An outside consultant saw one of the value statements on an underwriters desk that read “Never knowingly under- sell a customer.” But the consultant listened to several of her calls and realized that she consistently failed to explore customer needs or try to up-sell. “Her boss had told her what to do,but didnt follow through with the necessary rationale and appeals that would result in behavior change,”says the consult- ant. “As a result,her behavior was out of sync with the business outcomes the company wanted.” So the insurer put together a training session and coached its underwriters on ways to explore customer needs and broaden the sale. When the consultant visited the same underwriter a few months later,he noted that she was sending birthday cards to customers and calling during the year not just at renewal 10 “It was only after repeated dialogue, including feedback and coaching, that the underwriters behavior aligned with company goals.” P A P E R W O R K I N G time to identify unfulfilled customer needs. “It was only after repeated dia- logue,including feedback and coaching,that the underwriters behavior aligned with company goals,”explains the consultant (see Figure 3). C r e a t i v e w a y s t o b u i l d a c u l t u r e o f d i a l o g u e Organizations committed to managing performance devise innovative ways to make connections and circulate key messages. Alberto-Culver North America, the $600 million division of a $2.5 billion company whose profits tripled between 1994 and 2000,chose 70 “growth development leaders”(GDLs) from all levels of the company to help align behavior with goals. One goal was to recruit better talent. The GDLs moved through the organiza- tion to see what people were actually doing to meet the recruitment objec- tives. They found serious misalignment between goals and behaviors,says Jim Chickarello,group vice president of worldwide operations and one of the GDLs. For example,when job candidates came in for interviews,nobody gave them a basic overview of the business. Sometimes candidates would be left standing around because hand-offs between various interviewers were poorly coordinated. And no one had consolidated interviewer evaluations,so there was no central location where Alberto-Culver managers seeking new people could get a snapshot of all candidates the company had interviewed. 11 Poor TeamsTypical TeamsOutstanding Teams 60% 41% 8% Figure 3: The Coaching Style on Top Teams Percentage Indicating 0% 20% 40% 60% 80% 100% Teams that rely on a “coaching” managerial style get better performance percentage of team members who observed the team leader using a coaching managerial style. P A P E R W O R K I N G The top team and the GDLs devised a plan and created simple systems to carry it out. For example they created forms outlining an “agenda”for candidates that specified where hand-offs took place. No more waiting around. The GDLs developed take-home materials so that every candidate now receives a thor- ough company overview. Finally,the group created interviewer-report forms that must be sent to the manager who might ultimately work with the candi- date. As a result,Chickarello says the company slashed its open-job rate in half, from 10 percent to 5 percent. “ H a n d s - o f f ” m a n a g e m e n t m e a n s n o t b e i n g “ o n - m e s s a g e ” For years experts have emphasized the importance of dialogue in performance management. But too many managers avoid it. One veteran says annual per- formance appraisals “are like delivering a newspaper to a house with a growl- ing dog. You throw the paper on the porch and get away as fast as possible.” “Managers dont want to deal with confrontation,”says Charlotte Merrell,senior vice president for Boston-based Jack Morton Company,a leader in event mar- keting. “Even when employees are no