1 / 25

Building a Performance Management Culture a Black & Decker Case Study October 27, 2009

Building a Performance Management Culture a Black & Decker Case Study October 27, 2009. Black & Decker Overview Five “Evergreen” HR Strategies HHI Case Study Performance Appraisal Process Strong Organizational Culture - “Winning Culture Values” Alignment of Systems & Processes

Download Presentation

Building a Performance Management Culture a Black & Decker Case Study October 27, 2009

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Building a Performance Management Culture a Black & Decker Case Study October 27, 2009

  2. Black & Decker Overview Five “Evergreen” HR Strategies HHI Case Study Performance Appraisal Process Strong Organizational Culture - “Winning Culture Values” Alignment of Systems & Processes Differentiating Performance & Rewards Talent Review Process Employee Communication Additional Performance Management Tactics Lessons Learned Inspire Great People

  3. Grow Through Innovation Black & Decker • Founded in 1910 and based in Towson, MD • World’s largest producer of power tools & accessories, security hardware, plumbing products & fastening systems • 2009 revenues (est.) of $5B; 20,000 employees • Manufacture in 12 countries and sell in over 100 countries • Hardware & Home Improvement (HHI) division based in Lake Forest, CA • Revenues of $800M, 3,500 employees in U.S., Canada, Mexico and China • Brands include Price Pfister, Kwikset, Weiser, Baldwin and K2

  4. Strong Brand Names Black & Decker

  5. BDHHI Core Strategies Five “Evergreen” HR Strategies • Talent Acquisition • Employee/Organization Development • Winning Culture • Employee Communications • Performance Management

  6. Inspire Great People HHI Performance Management - 2006 Case Study • Annual Development Plan - ADP (Performance Appraisal) • 10 Winning Culture Values worth 20/15/10% of overall score depending on organizational level (Dir., Mgr., Indiv. Contrib.) • Goals made up the balance of overall score - up to 25 goals! • ADPs (ostensibly) completed in Q1 each year • No periodic progress reviews during the year • Low accountability for completing ADP process • No linkage to other business processes or alignment with a “performance management” calendar • Excel spreadsheet based process

  7. Grow Through Innovation HHI Performance Management - 2006 Case Study • “Merit” increases granted on a rolling 13 month basis • Not a strong commitment to a “Pay for Performance” culture - merits, annual bonuses and equity grants • Low level of organizational alignment • No Vision Statement • Strategic planning process was secret; no group level strategies • Strategies poorly communicated and not well understood • Up to 32 annual goals/metrics—results weren’t reviewed regularly by Leadership Team and little accountability • The Result: Siloed functional organizations - low alignment among Vision, Strategies, Functional & Individual Goals, Performance and Accountability

  8. Accelerate Global Growth “Change Creates Opportunity!” • Created a cross functional team in 1/06 • Direct reports to Leadership Team members • Advantages of this approach: • Greater diversity of backgrounds, ideas and participation created improved results • Performance appraisal process is enterprise-wide; required participation by employees who are knowledgeable of the process from all functional disciplines • Empowered a team to make improvements to an important core business process • Involvement in revising the process increased acceptance and support for the changes

  9. Deliver Operational Excellence Goals of a Performance Appraisal Process • Set goals and measure results • Assess and improve performance • Create development plans and enhance skills • Career development • Help evaluate potential for promotion • Change/reward appropriate behaviors • Align with company’s vision/values/strategies/goals • Differentiate levels of performance and rewards • Strengthen a “Pay for Performance” culture

  10. Inspire Great People Cross Functional Team - Focus Areas • Role of Winning Culture Values • Competencies • Rating scale & descriptors • IDP/career pathing • 360s • Forced ranking calibration • Design of the “form” and instructions • Web enabling the process • Communication • Training

  11. BDHHI Core Strategies The Solution • Nine month project from team formation to deployment of a web-based solution • Launched tool in 10/06 for 2006 performance appraisal and 2007 goal deployment • Reduced Winning Culture Values from 10 to 4 and rated them on a “pass/fail” basis • Competencies introduced—6 for individual contributors and a 7th for associates with direct reports • 50% of overall rating • Goals reduced to 5--8 maximum • 50% of overall rating • Five point rating scale initially introduced and later changed to 4 point to align across all of BDK

  12. Inspire Great People The Solution (cont’d.) • IDP requirement added and linked to BDHHIU courses • Online 360s - employees rated on Winning Culture values and competencies • Forced ranking/guided distribution done initially but later moved to Talent Review process • All training and communication done during Q406 • Strong support from top management was key - process accountability now delivers 99% plus completion rate • Tool has been adopted across BDK

  13. Grow Through Innovation “Strong Organizational Culture - Winning Culture” Values …Yet Another Cross Functional Team Opportunity Before (10) • Achieving Commitments • Great People • Raise the Bar • Focus • Boundarylessness • Attitude • High Energy • Urgency • Risk Taking • Impact vs. Activity After (4) • Demonstrate Unyielding Integrity • Inspire Excellence • Deliver on Commitments • Win Through Teamwork

  14. Great People

  15. Deliver Operational Excellence Alignment of Systems and Processes

  16. HHI Core Strategies

  17. Metrics & Accountability--Our Balanced Scorecard

  18. Inspire Great People Differentiating Performance and Rewards • Merit increases - use a matrix of recommended increase %s based on performance appraisal scores • Annual Incentive Plan (AIP) - metric is operating income factored by working capital charge • Brands tied to their own results • GMs have 75/25 split to drive line of sight alignment • Support staff tied to division results • Personal Performance Factor (PPF) as a second level calculation to leverage bonus from 0 - 150% of actual; range of differentiation is typically 75 - 125% • Equity—annual grant is tied to PPF with wide differentiation • All Rewards recommendations reviewed by President & VPHR • We “rack and stack” and give feedback to Leadership Team

  19. Grow Through Innovation Organization Assessment Process (OAS) • Online employee survey conducted every 2-3 years • Up to 95% response rate • HR is process gatekeeper • Focus groups make recommendations to management—accept/modify/reject • Follow up action items owned by functional executives • Quarterly report out to President and VPHR to ensure process accountability and continuous improvement • Quarterly “pulse” surveys (6 questions) done in the interim—started in Q1, 2008 • 50 - 75% response rate • Corrective action taken here as well • Results are published to employees via HHIOne (intranet)

  20. Q209 Lake Forest

  21. Deliver Operational Excellence Talent Review Process (Succession Planning) • Prior process was a “forms intensive, largely HR oriented” exercise • Low linkage to talent management processes • Little accountability for action and follow up • Process was reengineered • Number of templates reduced, fewer metrics and rich dialogue ensued • Discussion is now focused around “A” positions, organizational gaps, hipos/retention and employee development • Action items are followed up on • Core business process involving a 4 step, upwardly cascading process: • Functional Talent Review • Cross Functional Talent Review • Commercial Talent Review (Sales & Marketing) • Talent Review with Chairman and SVPHR • “Four panel” feedback is shared with all participants

  22. Accelerate Global Growth Employee Communication • Strategy driven by Director of Employee Communication • Communication philosophy is completely open and transparent • “Frequently, redundantly and using a wide variety of media” • Intranet (“HHIOne”) as employee portal • President visits all locations for Town Hall meetings annually • HHI-wide communications meeting every 2 months • Anonymous “OneTeam” questions • President conducts skip level meetings with direct reports to functional leaders • 1-800 Ethics Hotline (SOX requirement) • Pulse surveys and focus groups • Quarterly site newsletters • Launching digital signage

  23. BDHHI Core Strategies Additional Performance Management Tactics • Outside psychologist worked with LT and several functional leaders to build high performing teams • Built strong organizational culture • Quarterly biz reviews with LT of the 4 brands • Quarterly biz reviews with Chairman and CFO • Ops reviews in every functional support area • Use of self-assessments (Insights Discovery) as foundation for development plans • Extensive use of cross functional teams • Associates now “live” our Winning Culture Values…the foundation for everything we do

  24. Inspire Great People Recognized in 2008/2009 as one of Orange County’s best places to work . . . . 2008 & 2009 2009

  25. “Lessons Learned” • As always, top management support is critical • Must take an integrated, systems approach to effective employee management processes • Initiatives must be aligned with the business’ “operating rhythm” • Business is dynamic and your processes need to evolve • Solicit regular feedback from your customers • “Cultural change is a “team sport” • “The smart person uses all the help s(he) can get • Involve others cross functionally • Remember: The only sustainable competitive advantage is your talent…it must be well led, valued and empowered to make a difference

More Related