Revolutionizing Performance Management for Future Success

FUELING PERFORMANCE A FUTURE-FOCUSED APPROACH Katie Mullin VP Human Resources

CURRENT STATE OF PERFORMANCE REVIEWS What descriptors come to mind when you think of performance management?

Deloitte Insights Human Capital Trends 2017 Today, as companies operate as a network of teams, careers and learning are strategic and companies are shifting from jobs to work in their operations, the need to align goals, provide feedback, and coach for performance is real-time, continuous and multi-directional. Performance management: Playing a winning hand By Nathan Sloan, Dimple Agarwal, Stacia Garr, Karen Pastakia

Continuous Performance Management Approach Agile goal management, check-ins, and continuous feedback are becoming common, and new models of evaluation and rewards are being adopted next. Bersin calls it Continuous Performance Management

Continuous Performance Management Approach MOVING FROM: Once a year review of performance with series of ratings Leader directed feedback based on long cycles, looking backward MOVING TO: Shared, forward-focused process In the moment feedback Focusing on improving performance in near future

FCSAMERICA/ FRONTIER FARM CREDIT OUR JOURNEY: A CROSS-FUNCTIONAL TEAM APPROACH

Why Change? Very time consuming Not moving the needle on performance Backwards looking Too much emphasis on the rating or score Ratings frustrate people and are subjective Stress-inducing for leader and employee

Guiding Principles Fits our Culture Future Focused Elevates Performance Simple/Efficient Objective Measures Flexible Employee Engagement Leader Engagement Repeatable

Features Open, honest two-way communication Frequent, real-time discussions Teammates own their own development and performance Performance AND development goals

Process Monthly employee check-ins Two (2) employee Grow 1:1s per year Discussions focusing primarily on the future Using InsideOut Coaching methodology

Check-Ins Real-time/Future-focused coaching Brief: 10 to 15 minutes Monthly Phone/video/Face-to-Face Informal, but meaningful Compliments longer Grow 1:1s Typically undocumented

Check-In Questions What s Working? Where are you getting stuck? What might you do differently?

Grow 1:1s Two (2) Times a Year Scheduled (about 30 minutes) 3-6 Month Goals/Focus One-On-One and Face-to-Face Specific/Targeted InsideOut Coaching All leaders trained and given a conversation guide

InsideOut Coaching The biggest obstacle in performance isn t knowing what to do; its doing what you already know. - Alan Fine

What is the Calibration Process? After the Snapshot conversation, the leader answers five (5) questions in our Human Capital System: TalentWORKS. (4 are rated)

What is the Calibration Process? 1. This teammate s performance exceeds my expectations. 2. This teammate s focus on development exceeds my expectations. 3. This teammate fully exemplifies our Team Principles and We Are Performance Expectations. 4. I would always want her/him on my team. _______________________________________ Strongly Agree Agree Neutral Disagree Strongly Disagree 5. This team member is at risk for low performance (yes/no)

Team Principles & We Are Performance Expectations Behavioral expectations that align with our culture Our teammates understand and relate to these principles This provides an integrated approach to expected behaviors. Used in place of competencies

This Team Member is at Risk for Low Performance If YES: Add comments to the notes section The system will inform the HR Generalist, so there can be a conversation

Development Plans & Goal Setting Development Plans and Goals will still be required At least one goal must be development focused A critical part of the discussion

Team Recognition CELEBRATE TEAM ACCOMPLISHMENTS This is CRITICAL! This is CRITICAL!

Leader Expectations The leader plays a big role in the success of this process Check-ins and Snapshots using the language InsideOut Coaching Open and honest two-way communication

Some Thoughts Concerns as we rolled this out: Requires trust in the leader and the entire process Requires leader to let teammate know where they stand through discussion Teammates literally do not see anything Would our analytical teammates NEED numbers and ratings? What issues will arise that we did not think about?

NEARLY TWO YEARS LATER WHAT WE LEARNED

Observations Feedback (HR Survey) confirmed the new process is working well, but there are opportunities to enhance understanding and the value derived from it. 44% of employees believe it is more effective. 43% think it s about the same. 74% of leaders believe the new process is more effective than the previous process

Improvements Improvements we made based on feedback: We needed to eliminate confusion on some wording: We encouraged leaders to say we re checking in , so employees knew it was a check in! We created an even better InsideOut Conversation Guide for leaders We communicated an even stronger emphasis on goals review and discussion

Data Impact to FCSAmerica/Frontier Thousands of hours saved High engagement remains (88%) Strong performance = High profitability Effectively meeting our goals (Incentive Plan)

Start here: Identify a strategy and philosophy for PM Look to peersand see what is working Tailor PM to strategic and organizational needs The core principles of check-ins, agile goal setting, and frequent feedback are becoming common around the world. But some companies still want formal reviews, numeric ratings, and development plans. Adopt new practices at a speed that works for the business. Upskill managers in coaching skills Continuous feedback for employees is a critical feature of the new PM paradigm, yet managers often need help learning how to be full-time coaches rather than part-time evaluators. Put it all together Determine how changes to PM will inform the organization s rewards, incentives and compensation

The essence for performance management is open, honest, two-way communication about past performance and future expectations. - Center for Effective Organizations