agile india 2016: workshop: from traditional performance management to iterative performance flow

Agile India 2016 | Bangalore | Mar-15-2016

Fabiola Eyholzer | @FabiolaEyholzer | #AgileIndia2016

Workshop: From Traditional Performance Management to Iterative Performance Flow

© 2016 Just Leading Solutions LLC. All Rights Reserved

From Performance Management to Performance Flow

How did your last performance review make you feel?

Mar-15-2016© 2016 Just Leading Solutions LLC. All Rights Reserved 2


Performance Management is currently the most scrutinized of all HR processes



Many companies are eliminating employee appraisals –including 10% of Fortune 500 – and more are to follow


Sources: Performance Mgmt for the 21st C organization, Edie L. Goldberg SHRM Jul-152015 | NeuroLeadership Institute SHRM Jul-2015 | Dread Performance Reviews? This Company's Getting Rid Of Them, Dominique Mosbergen, The Huffington Post, Jul-2015 | Why GE had to kill its annual performance reviews after more than three decades, Max Nisen, Quartz, Aug-2015 | In big move, Accenture will get rid of annual performance reviews and rankings, Lillian Cunningham, The Washington Post, Jul-2015 | Why Employee Performance Reviews Are So Old School, Millie Dent, The Fiscal Times, Jul-2015 | The Push Against Performance Reviews, Vauhini Vara, The New Yorker, Jul-2015

10% of Fortune

500


It’s high time for change: Performance Management has its roots in the 1950s post war era



Performance Management is (used to be) considered best practice …


91% of companies


… and the process is fairly standard – regardless of size or industry

Source: Mercer: Global Performance Management Survey Report, Mercer | SHRM: HR Professionals’’ Perceptions about PM effectiveness


Performance Rating 89%

5 Point Scale 57%

30%16%

95% 93%

Formal Goal Setting

Year-End Review

Mid-Year Review Pay for Performance 89%

Forced Ranking


We invest billions into this system


Sources: Harvard Business Review April 2015: Reinventing Performance Management by Marcus Buckingham & Ashley Goodall | The Washington Post Jul-21-2015: In big move, Accenture will get rid of annual performance reviews and rankings by Lillian Cunningham

Deloitte was spending close to

2 million hours a year on evaluations.

A company of 10,000 employees spends about

$35 million per year on annual reviews.


But how satisfied are we with the investment?

SHRM Survey: HR Professionals’’ Perceptions about PM effectiveness (Oct-21-2014) | Office Vibe "13 Disappointing Performance Appraisals Facts You Really Need To Know", Sep-2014 | Corporate Executive Board 2014

Mar-15-2016© 2016 Just Leading Solutions LLC. All Rights Reserved

95%dissatisfiedmanagers

58%say doesn’t drive

engagement

2%of HR attests

grade A

30%say it decreases

performance

59%employees say waste of time

9


We invest billions into a system that is clearly underperforming



With such low ROI levels, why do so many companies stick with it? Why the reluctance to change?



The tides are shifting and agile teams | organizations are at the forefront



Agile teams take it one step further and really push the reset button


Source: Just Leading Solutions LLC, Author Series


Agile teams bring a new mindset to Performance Management


Source: Professor Nick Holley, Henley Business School, HR Tech World Oct-2015

process conversation

historical forward looking

negative positive

individual collective

rating performance improving performance

measuring the past focusing on the future

addressing weaknesses building on strengths


What are some typical challenges to solve


How do you estimate individual

contribution in teams? How do you ensure

feedback without employee appraisals?

How do you pay for performance without

ratings?

How do you deal with low

and under performer?

What are the new yardsticks for pay and

promotion?How do you

remunerate fairly and individually without

appraisals?


Let us tap into all the ideas, experiences, and knowledge in the room



And that is how we will do it

• Market Place of Ideas

• Present challenges

• Twitter votes

• Decide on sessions

• 10 minutes

• 2-3 Breakout Sessions

• Interactive discussion

• Moderated by challenger

• 15-20 minutes

• Solution Exchange

• Present key ideas/findings

• 15 minutes


Market Place of Ideas

Break Out Session

Solution Exchange

Thank you!

Just Leading Solutions

275 Madison Avenue14th Floor

New York, NY 10016

[email protected]

Fabiola EyholzerCEO

[email protected]+1 908 340 8091

@FabiolaEyholzer
