is performance management outdated?

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Is Performance Management outdated? Colette @ © 2016 Rolling Arrays – Proprietary and confidential

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Is Performance

Management

outdated?

Colette @

© 2016 Rolling Arrays – Proprietary and confidential

Suddenly, performance management is making news again…

Why are companies moving away from performance management?

Source: https://abhishekmittal.com/2016/02/20/performance-appraisals-not-dead/ | Image: Youtube - https://i.ytimg.com/vi/XqfwYkpOLg4/maxresdefault.jpg

… it’s awkward

Time-consuming process with an uncertain ROI

REASON NO.1

The element of subjectivity and bias in the

measurement and rating system

REASON NO.2

Backward-looking with focus on historical

performance, rather than forward-looking

REASON NO.3

Limited meaningful differentiation of high performers

REASON NO.4

Source: https://www.towerswatson.com/en-US/Insights/Newsletters/Americas/insider/2015/08/play-for-a-champion-income-inequality-and-organizational-performance

Published: 25 August 2015

Over-reliance on ratings, leading to missed opportunities

for feedback and developmental inputs

REASON NO.5

Managers lack the skills or the tools to give

constructive feedback

REASON NO.6

Insufficient integration with other talent and rewards

programs and processes

REASON NO.7

Performance

Learning &

Development

Rewards

HRIS?

Succession?

Recruitment?

How do we upgrade performance management?

Closed door discussions

Annual paperwork

Forced-ranking

Compensation-focused

Historical performance

Collaborative/ transparent 1:1s

Regular structured coaching

Target vs. hyper achiever

Development-focused

All-round actionable insights

CASE STUDY NO.1

BEFORE

• Annual review at the end of

the fiscal year

• 2 mil hours a year to do

performance review

• Focused on rating instead of

performance

• Ratings are subjective

NOW

• Review tied to project cycles

• Quarterly 10 question progress

survey send to employee’s phone

• Quarterly 10 min / 4 questions

performance snapshot for

managers to complete

• Focused on what would they do

with the individual instead of what

they think of that individual

Source: https://hbr.org/2015/04/reinventing-performance-management

CASE STUDY NO.2

BEFORE

• Invented the “rank and yank”

system based on bell-curved

performance distribution

• Formal once-a-year review

on past performance

• Compensation tied to

ranking

• “Promoted” self-promoting

behaviours

NOW

• PD@GE mobile app

• Regular informal “touchpoints” to

set/ update priorities

• Forward looking and on-going

coaching

• Suggestions can come from

anyone in an employee’s network

• “Shadow ratings” problem

Source: http://qz.com/428813/ge-performance-review-strategy-shift/

What about 9-box grid and succession planning?

Wait, but how do we

distribute pay and bonus?

Is this fair?

Asian companies are hesitant to make major changes…

Source: https://www.willistowerswatson.com/en/insights/2016/02/Is-Performance-Management-Working (Nov 2015) - 365 APAC companies of which 26 are from Hong Kong

… but they are embracing some elements of the new trend

Source: https://www.willistowerswatson.com/en/insights/2016/02/Is-Performance-Management-Working (Nov 2015) - 365 APAC companies of which 26 are from Hong Kong

How is technology stepping up for this

challenge?

“Continuous Performance

Management facilitate ongoing

1:1 check-ins between

employees and managers to

help ensure activities and

goals stay on track throughout

the year by making it easy to

provide and capture feedback

and coaching"

"You can think of Impraise as a

fitness tracker for your

professional life. The same

way you can track your

morning runs and your

progress in the last few weeks,

you can use Impraise at work

to track your professional

development."

"Reflektive is an agile talent

development suite integrated

into your employee's daily

workflows to drive maximum

productivity and engagement."

"Small Improvements is a tool

that allows you to deploy a

custom feedback process for

your organization. Give

managers a place to capture

1:1 notes, mentor reports on

objectives, or enable

coworkers to congratulate on a

job well done."

Performance review

360 degree feedback

Real-time feedback

Skills coaching

Development tracking

Team overviews

Mobile available

Performance review

360 degree feedback

Goal alignment

Real-time feedback

Activities tracking

1:1 reminders / records

Mobile available

Performance review

360 degree feedback

Goal alignment

Real-time feedback

Morale polls

Performance review

360 degree feedback

Real-time feedback

Public/ private objectives

1:1 records

Praise people

Mobile available

Is performance management outdated?

Source: https://www.google.com/trends - Global 10-year trend (Apr 2006 to Apr 2016)

Thank you and let us know what you think!

MalaysiaEmail : [email protected]

AustraliaEmail : [email protected]

PhilippinesEmail : [email protected]

Hong KongEmail : [email protected]

IndonesiaEmail : [email protected]

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