New Trends in Performance Management – How can we embrace it?

1. New Trends in Performance Management – How can we embrace it? WINNER of Microsoft Code For Honor 2014 Large Enterprise Software Best Human Capital / Talent Management Solution

2. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… House Keeping Instructions • House Keeping Instructions • panel. • All phones are set to mute. If you have any questions, please type them in the chat window located beside the presentation panel. • We have already received several questions from the registrants, which will be answered by the speakers during Q&A session. • We will continue to collect more questions during the session as we receive and will try to answer them during today's session. • In case if you do not receive answers to your questions today, you will certainly receive answers via email shortly. • Thank you for your participation and enjoy the session. …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Synergita.com

3. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Speaker Profile …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Kavitha Kalyanasundaram kavitha@synergita.com Specialist on HR Performance Management Systems Synergita Kavitha Kalyanasundaram Specialist on HR Performance Management Systems Synergita Synergita.com

4. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… The Agenda • Latest happenings in performance management • Quick Recap of the current performance management process • Problems in the current performance management process • New performance management practices • Look at how some companies are embracing the new trends • Benefits • What are some easy practices that we can follow? …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Synergita.com

5. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Latest News on Performance Management …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Adobe abolishes Annual Performance Review Source: Business Insider How Deloitte is Redesigning Performance Management Source: HBR Microsoft axes its controversial employee ranking system Source: theverge.com In a Big Move, Accenture will get rid of Annual Performance Reviews and Rankings Source: washingtonpost.com Synergita.com

6. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Is Performance Management Broken? According to Corporate Executive Board (CEB) survey of Fortune 1,000 companies “The number of employers that are either ditching the numerical ranking of employees or tossing out the entire performance review process has grown from 4 percent in 2012 to 12 percent in 2014” …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Synergita.com

7. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Survey 1 Q1 Are you happy with your current performance management process? …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… YES NO PARTLY HAPPY Synergita.com

8. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Traditional Performance Management Process …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Employees are Categorized into Grades Interim /Annual Performance Reviews Goals are set at the beginning Normalization / Bell Curve Salary Increments Appraisal Meeting Synergita.com

9. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Problem With the Current Performance Management Process… In a survey that was conducted by Deloitte, more than half the executives questioned (58%) believe that their current performance management approach drives neither employee engagement nor high performance …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Recency Bias in Rating Surprise element between managers and employees. Ranking employees and fitting them in predefined bell curve is a de-motivator. Too much paper work and time gets wasted on filling forms, normalizing etc., with no real “Performance” benefits . Performance reviews have become more like an annual ritual.. A check mark that it has been completed. Performance cannot be driven by just giving feedback once a year. Synergita.com

10. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… New Performance Management Practices - A Quick Overview Performance Management is not abolished – but organizations are embracing newer and better ways of managing performance. On analysis of the changes made by these companies, the following points emerge: …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… What is abolished? Forced / Stacked Ranking of employees into a bell curve Annual Performance Reviews Ratings http://blogs-images.forbes.com/joshbersin/files/2014/06/1b7e670jpg Why are people moving away from bell curve? Normal distribution equally distributes people above and below average And a small number of people fall at the extremes - two standard deviations. Synergita.com

11. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… New Performance Management Practices - A Quick Overview (Article written by Bersin, Source Forbes) To avoid grade inflation, companies force managers to have a certain % at the top, certain % at thebottom and a large % at the middle. For instance, top 10% should be high performers, bottom 10% should be low performers. So Even if there aren’t any low performers, people are pushed into it! Research conducted shows that almost a majority of groups do not fall into bell curve distribution, But a pattern called Power Law Distribution: …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Synergita.com

12. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… New Performance Management Practices - A Quick Overview According to Tom Peters, Author of the book “In Search of Excellence” – Dynamic Employee Evaluation is the need of the hour. …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… New practices that are brought in: Timely, Constructive feedback and meaningful discussions. Agile is the keyword. Focus on Employee Development. In knowledge related jobs, skills, attitude, customer empathy, ability to innovate and work in teams matter more. So focus should be on constantly developing these capabilities Synergita.com

13. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Continuous Conversations... …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Synergita.com

14. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Survey 2 Q2 Do you follow forced ranking / bell curve in your performance ? YES NO

15. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… New Performance Management Practices A peek into the performance review of companies like Deloitte and Adobe’s . …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… There are no ratings or ranking. Adobe’s and Deloitte have introduced regular “check-ins”. These are brief conversations that allow leaders to set clear expectations, review priorities, give feedback both positive and constructive on recent work, and provide course correction and coaching. IN Deloitte: At the end of project/ or ever quarter, team leader is asked to respond to four future focused questions about each team member. Sample questions: Given what I know of this person’s performance, I would always want him or her on my team . This person is ready for promotion today. Synergita.com

16. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Continuous Feedback Statistics at Radisson Blu GRT Radisson Blu GRT is a five star hotel in Chennai. They have a very efficient continuous performance culture and rewards mechanism for their employees. Employees can give Bravo award to other employees. Each reward has points and once they have points accumulated they can redeemthem. …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Total number of awards provided in the past 12 months: 2850 Synergita.com

17. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… New Performance Management Practices …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… AM Motors is a Maruti car dealership based out of Kerala. Every month manager sets targets for employees and the next month they are reviewed and new targets are set for the month. End of year performance would be the cumulative of the rating for each month. PAiprovides financial products and services to people and is based out of Wisconsin, USA. They have mandatory Monthly one on one discussions between their managers and employees. Synergita.com

18. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Benefits Collaboration instead of competition Employee Engagement Better Performance No Rating = No Bias No un-necessary paperwork. Attrition will reduce …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Synergita.com

19. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Our Understanding In companies who do away with annual performance reviews and ratings, there is still a link between rewards and performance. We feel that employees performance discussions done through-out the year would culminate on a final performance level or descriptor. There will be no forced rankings. A natural bell curve will be allowed to form on the basis of performance …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Synergita.com

20. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Key Takeaways Continuous conversations is great for performance culture and morale of employees. Managers can be encouraged to do it and HR can be facilitators. Introduce Performance based Rewards, spot awards, etc. Eliminating Forced Ranking and allow bell curve to form on its own. We can still have the annual performance reviews untouched.. …………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Synergita.com

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