绩效管理幻灯

ExecutiveHumanResourceProgramThePromiseofPerformanceManagementHayGroupBoston

10109-9271-HAYGLemaireTheCurrentChallengeofPerformanceManagementTheHRprocess—IscompletelyunrelatedtootherkeybusinessprocessesIsdreadedbymanagersandemployeesalikeDoesnotresultinanymeaningfulfeedbackDoesnotdifferentiateperformanceorpayIsafocusforonlyoneortwodays—orhours—peryear20109-9271-HAYGLemaireThePromiseofPerformanceManagementImagineasystemthatcould—IncreasethelikelihoodthatyourstrategyiseffectivelyexecutedHarnessanddirectthe10–60minutesadayofdiscretionaryeffortthateveryoneofyouremployeeshasRationalizeandfocusthenumberofgoalsthatanyoneinyourorganizationhasImprovethedecisivedialoguethatoccursinyourorganizationRewardperformanceinawaythatitismotivatingandengagespeopleDifferentiateperformanceinwaysthatmakelinemanagersfeelgoodabouttheirdecisions30109-9271-HAYGLemairePerformanceNumberofEmployeesSource:Hay/McBerOptimizingtheperformanceofyourpeoplewillhaveapositiveimpactonbusinessperformanceImprovingPerformanceManagementImprovesBusinessResults40109-9271-HAYGLemairePercentageofvariationinchangeincompanyperformanceaccountedforbymanagerialpracticesSource:SheffieldEffectivenessProgrammeHumanResourceManagementPracticesDriveProfitabilityandProductivity50109-9271-HAYGLemaireHighlySuccessfulCompaniesaredefinedashaving—5-yearsalesgrowth=17.5%peryear5-yearprofitgrowth=10.8%peryearAnnualequitygrowth=16.7%peryear5-yeardividendgrowth=13.4%peryearSource:D.Karvetz,TheHumanResourcesRevolutionClearEmployeeGoalsParticipativeStyleAttentiontoDevelopmentEncourageCreativityPerformance-BasedRewardsHighlySuccessful

CompaniesLessSuccessful

Companies80%70%67%62%86%26%4%27%10%30%High-performingcompaniesarebetteratmanaging,motivating,andrewardingemployeesImprovingPerformanceManagementImprovesBusinessResults60109-9271-HAYGLemaireSource:Mavrinac&Siesfield,MeasuringIntangibleInvestmentStrategyExecutionMatterstoShareholdersThirty-fivepercentofaninstitutionalinvestor’svaluationofacompanyisattributabletononfinancialinformationthatgaugestheabilityofthemanagementteamtodeliverresults:StrategyExecution:Canmanagementmaketoughdecisionsandseizeopportunitiesquickly?ManagementCredibility:Doesthecompanykeepitscommitments?StrategyQuality:Ismanagement’svisionofthefuturelikelytooptimizevaluecreationinavolatile,globalized,andconnectedeconomy?Innovativeness:Howreadilydoesthiscompanyadapt?AttractingandRetainingTalent:Isturnoverhigherorlowerthankeycompetitors?Donewhiressurpassleaversinskillsandexperience?ManagementExperience:Whatskillsandexperiencesdoesthemanagementteambringtothetable?Compensation:Docompensationpoliciessupportthefirm’sstrategicintent?70109-9271-HAYGLemaire35%improvementinhuman-capitalsystemsresultedin

10%–20%gaininshareholdervalueAlignmentandIntegrationofHRSystem“HumanCapital”Enhancements290310330350370390020406080100QuintileImprovementsinStrategicMarketValueperEmployee(000)Source:HuselidandBaker,1995HumanCapitalSystemsIncrease

ShareholderValue80109-9271-HAYGLemaireImprovingPerformanceManagementImprovesBusinessResultsHigh-performancecompaniesdefinePerformanceManagementinitsbroadestsense:itiscriticaltoexecutingandimplementingstrategyPerformanceManagementisnowwidelyrecognizedasdeliveringmorereturnsanddeliveringmorecompetitiveadvantagesthanotherHRinvestmentsPerformanceManagementisthekeyto“raisingthebar”inanorganization,foralllevelsofperformanceOrganizationswithahigh-performanceorientationandstrongmanagementcapabilityhavehigherrevenue,profits,andmarketvaluations90109-9271-HAYGLemairePerformanceManagementPerformanceManagementisaboutimprovingbusinessperformancebyimprovingteamandindividualperformance,andensuringthatthecompany’sstrategyisexecutedandimplemented.Itis—AprocessthatensuresthatpeopleexecutethestrategyoftheorganizationAprocessforestablishingasharedunderstandingofwhatisto

beachievedandhowAprocessforensuringthatdecisiveandconstructivedialogueoccursAprocessofmanagingselfandotherssothatpeopledoachieveAprocessforensuringthatpeoplearedoingtherightthingsin

themosteffectiveways,tothebestoftheirability100109-9271-HAYGLemairePerformanceManagementStagesDesignParameterPerformanceAppraisalPerformanceManagementPerformanceOwnershipHumanResources“Checkthebox”compliance-orientedManagepoorperformersPassiveReportcard(retrospective)ManagersandHumanResourcesEvaluationrewardemphasisManagethetailsofbellcurveJointownershipforgoal-setting/reviewBarometerofprogress(periodic)Employees,managers,andleadershipStrategicclarity,coaching,dialogueRaiseperformanceoforganizationSharedaccountabilityforresultsDialogue(continual)FunctionRoleofEmployeeFocusEmphasesOwnership110109-9271-HAYGLemairePerformanceAppraisalPerformanceManagementManagingPerformanceHighLowLowHighImpactonResultsLevelofOrganizationalCommitmentImprovedbusinessresultsrequireorganizationalcommitmentCommitmenttoachievecompanygoalsGoodsettingandreviewMeritincreasesefficientlyallocatedPerformanceManagementStagesthis120109-9271-HAYGLemaireTheperformancemanagementmodelisnotnew,butthewayinwhichleadingorganizationsdoitisverydifferent&&DialogueDialogueDialogueDialogueBestPractices130109-9271-HAYGLemaireBestPractices—What’sDifferent?Therearefourdifferentiatorsofbestpractice:ClearStrategyTranslationProcessIntegratedPerformanceProcessesCultureofDialogueMultipleandDifferentiatedRewards140109-9271-HAYGLemaireStrategyTranslationProcessADefinition:“Earlyinthehistoryofthecompany,whilethinkingabouthowacompanylikethisshouldbemanaged,Ikeptgettingbacktooneconcept:ifwecouldsimplygeteveryonetoagreeonwhatourobjectiveswereandtounderstandwhatwearetryingtodo,thenwecouldturneverybodylooseandtheywouldmovealonginacommondirection.”DavePackard150109-9271-HAYGLemaireStrategyTranslationProcessChecklist:Arealltopteammembersunifiedandfocusedonthe“must-win”battlesoftheorganization?Aretheinterdependenciesclearbetweenthetop-teammembers?Arethemiddlemanagersclearonthe“must-win”battles?Doemployeesknowwhattheyneedtodofortheorganizationtobesuccessful?Financialgoals,operationalgoals,behaviors160109-9271-HAYGLemaireIntegratedPerformanceProcessesADefinition:“Leadersmustseetoitthattheorganization’s‘socialoperatingmechanisms’—thatis,theexecutivecommitteemeetings,budgetandstrategyreviews,andothersituationsthroughwhichpeopledobusiness—havehonestdialogueattheircenter.Thesemechanismssetthestage.Tightlylinkedandconsistentlypracticed,theyestablishclearlinesofaccountabilityformakingdecisionsandexecutingthem.”RamCharam,HBR4/2001170109-9271-HAYGLemaireIntegratedPerformanceProcessesChecklist:Dothegoalsoftheorganizationreflectinterdepartmentalobjectives?Arethefinancial,operational,andpeopleprocessesintegrated?Istheinformationfromtheseprocessesusedtomakebusinessdecisions?Aretheprocessesefficientandeffective?180109-9271-HAYGLemaireCultureofDialogueADefinition:“Aleadershouldbeconstructinghisappraisalallyearlongandgivinghisappraisalallyearlong.Youhave20,30,60opportunitiesayeartoshareyourobservations.If,attheendoftheyear,someoneistrulysurprisedbywhatyouhavetosay,thatisafailureofleadership…Byfailingtoprovidehonestfeedback,leaderscheattheirpeoplebydeprivingthemoftheinformationthattheyneedtoimprove….Criticalfeedbackisthe“heavylifting”ofleadership”EDS’sDickBrown190109-9271-HAYGLemaireTypicallyanewemployee’sproductivitycurveincreasesquickly,thenlevelsoffWithoutreinforcementandfeedbackthelevelstaysthesameormayfalloffSporadic,inappropriate,orgeneralfeedbackwithoutreinforcementhasadistinctiveeffectonmotivationandperformanceConsistent,specificfeedbackanddialoguebuildself-esteemandperformanceFeedbackFeedbackFeedbackFeedbackCultureofDialoguePerformanceCoaching/FeedbackIsCritical200109-9271-HAYGLemaireCultureofDialogueChecklist:Aremanagers(andemployees)trainedinandgoodatperformancedialogue?Aremanagersselectedandheldaccountableforperformancecoaching?Arecoachingbehaviors“lived”bytheleadersoftheorganization?Isthedialogueopen,informal,andcandid,anddoesitprovideclosure?210109-9271-HAYGLemaireThebettermyperformance,thebettermytotalcompensationwillbeMultipleandDifferentiatedRewardsWhenmostemployees,eventhestars,getthesamepay,itreducesclarityaboutwhatgoodperformancelookslikeSource:HayGroup220109-9271-HAYGLemaireMultipleandDifferentiatedRewardsApproaches:IncreasedialogueUsemultiplecurrenciesReviewuseofratingsUseforcedrankingsFindnewwaystodifferentiatemerit230109-9271-HAYGLemaireDifferentiatedRewardsSeparatemeansfromendsTactics/StrategiesBehaviorsTrainingTrainingTrainingTrainingTactics/StrategiesBehaviorsTrainingTrainingObjectivesEnablersConductanalysisofwhyOTissohigh;developstrategytoreduceOT;implementstrategyImplement3programsaimedatincreasingcustomersatisfaction:begintrainingprograms;upgradecallcentersoftware;establishamonitoringprogramSethighgoalsforyourselfandfortheteam:trytoreducefrom50to30permonth;communicatetoteamwhatneedstobedone;“own”thisprocessIdentifycustomerissues:thinkaboutandactonopportunitiestoaddresstheseissues;actasarolemodeltosubordinates—showthemhowtoworkwithcustomers;improvecall-centersoftwaresystemTrainingTrainingTactics/StrategiesBehaviorsDevelopaplantomeetwitheachofyoursubordinatesandgetthe“pulse”onhowtheyaredoing(re:jobs,projects,expectations);developcareer-pathingplanswitheachofyoursubordinates;developideasaroundnonmonetaryrewardsCoachconsistently:delivertimelyandconstructivefeedback;addressissuesimmediately;makesureotherscontributeandhavewhattheyneedtodothejobTactics/StrategiesBehaviorsBusinessObjectivesCareerDevelopmentObjectivesImproveconsistencyofcustomer’sdelivery(evidencedby98%customersatisfaction)[Goalssetforyear]Improveemployeeretentionindepartmentby50%[Goalssetfornext8months]Reduceovertimefrom150to50hours/month(costnottoexceed$12,000)[Goalssetforyear]240109-9271-HAYGLemaireExtentof

Differentiation1. CompanywidesuccessmeasuresCompanyrevenueProfitabilitymeasuresNoneNone2. BusinessunitsuccessmeasuresUnitrevenueProfitabilitymeasuresOthermeasuresAnnualincentiveSome,basedonindividualcontribution3. Successmeasures—currentroleContributiontounit/companymeasuresSalaryincreaseLittle4. Requirements—currentroleMeet“current”jobdescriptionLivethevaluesNoneNone5. Successmeasures—futurerolesDemonstrationofsuccesscompetencies/behaviorsAchievementofdevelopmentgoalsFutureearningsSalaryAnnualincentiveLong-termincentiveRecognitionSignificant,basedonpotentialMeasuresFirst-LevelManagersReward

Linkage1. Company-widesuccessmeasuresCompanyrevenueProfitabilitymeasuresLong-termincentiveAnnualincentiveSome,basedonroleSome,basedonrole2. BusinessunitsuccessmeasuresUnitrevenueProfitabilitymeasuresOthermeasuresAnnualincentiveSignificant,based

onunitperformance3. Successmeasures—currentroleContributiontounit/companymeasuresAnnualincentiveSomediscretionary

component4. Requirements—currentroleMeetcurrentjobdescriptionLivethevaluesNoneNone5. Successmeasures—futurerolesDemonstrationofsuccesscompetencies/behaviorsAchievementofdevelopmentgoalsFutureearningsSalaryAnnualincentiveLong-termincentiveRecognitionSignificant,basedonpotentialSalaryincreasetiedtomarketmovementLittleMeasuresExecutivesReward

LinkageExtentof

DifferentiationExtentof

DifferentiationDifferentiatedRewardsDon’tdouble-count!250109-9271-HAYGLemaireInSummary:TwoExamplesPerformanceAligningProcessesPerformanceCoaching/FeedbackDifferentiated

RewardsSignificantemphasisonmanagementprocessesonintegratedtalentmanagemente.g.,two-daydetailedevaluationofbusinesswithmanagersbeingcolor-codedCEOmodelsdesiredbehaviorsTeaches/coachesMentors/counselshighperformersSignificantinvestmentintraining/developingpeopletobegoodcoachesBusinessesrankedat multiplelevelsand informationispublicly sharedHeavyuseofincentives (upto50%,evenfor first-levelmanagers)Strongfinancialand operationalprocessesCECSessionCS1/S2Significantmovement

ofstartalentOpen,candiddialoguethatstretchesindividualsandor