Shifting From Performance Appraisals to Performance Development

Dr. Tim Bakertim@winnersatwork.com.auwww.winnesatwork.com.au

Understand why performance reviews are outdated & ineffective

Develop some strategies for shifting from appraisal to

development

Familiarise myself with the Five

Conversations Framework

Some reflections …GE announced it was abolishing its "rank and yank" system, which assigns employees a performance score relative to their peers and results in the lowest percentile getting fired.

Accenture’s 330,000 employees are undergoing what CEO Pierre Nanterme has called a "massive revolution" in which timely, personalized employee feedback is replacing annual evaluations and rankings.

Some reflections …

Microsoft’s overhaul of its own performance management process as a move in this direction.

Some reflections …

As Laszlo Bock, SVP of People Operations at Google, recently wrote:

“Performance management as practiced by most organizations has become a rule-based, bureaucratic process, existing as an end in itself rather than actually shaping performance. Employees hate it. Managers hate it. Even HR departments hate it.”

Some reflections …

If we want employees working together, not competing with one

another, towards achieving common goals

removing ratings is a good starting point.

What’s Wrong With the

Traditional Performance

Appraisal?

They are a costly exercise

Appraisals can be destructive

Appraisals are often a monologue rather than a dialogue

The formality of the appraisal stifles discussion

Appraisals are too infrequent

Appraisals are an exercise in form-filling

Appraisals are rarely followed up

Most people find appraisals stressful

Survey on Performance Reviews …

Command & Control Adaptive

coachingdeveloping

influencing

collaborating

problem solving

Organisations are conversations

Myths about performance

reviews

Myth 1: Increasing individual performance increases organisational performance

Myth 2: We need the performance review to objectively categorise people

Myth 3: Managers are in the best position to make judgments about people's performance

Myth 4: Performance reviews enhance employee performance

Myth 5: Performance reviews are designed to help employees

Roles people play in organisations are more important than the jobs

they do...

The Work People Do

Job role Non-job roles

Technical skillsTeam role

Career role

Innovation & Continuous Improvement role

SOURCE: The End of the Performance Review

Positive mental attitude & enthusiasm

The five conversations frameworkDate Topic Content Key Questions

Month 1 Climate review Job satisfaction, morale and communication

• How would you rate your current job satisfaction?• How would you rate morale?• How would you rate communication?

Month 2 Strengths and talents

Efficiently deploying strengths and talents

• What are your strengths and talents?• How can these strengths and talents be used in your current and

future roles in the organisation?

Month 3 Opportunities for growth

Improving performance and standards

• Where are opportunities for improved performance?• How can I assist you to improve your performance?

Month 4 Learning and development

Support and growth • What skills would you like to learn?• What learning opportunities would you like to undertake?

Month 5 Innovation and continuous improvement

Ways and means to improve the efficiency and effectiveness of the business

• What is the one way that you could improve your own working efficiency?

• What is the one way that we can improve our team’s operations?

Baker, T. (2013). The End of the Performance Review: A New Approach to Appraising Employee Performance

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Dr Tim Bakertim@winnersatwork.com.auwww.winnersatwork.com.au

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