New Trends in Performance

Management
How can we embrace it?

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

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

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

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

Survey 1

Q1

Are you happy with your current performance management process?

YES

Synergita.com

NO

PARTLY HAPPY

Traditional Performance Management Process

Goals are set at

the beginning

Interim /Annual
Performance Reviews

Employees are
Categorized into
Grades

Salary Increments

Appraisal Meeting

Normalization / Bell
Curve

Synergita.com

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

New Performance Management Practices - A

Quick Overview
Performance Management is not abolished but organizations are
http://blogsembracing newer and better ways of managing
performance.
images.forbes.com/joshbersin/files/20
14/06/1b7e670jpg
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

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

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 the bottom and a large % at the middle.
For instance, top 10% should be high performers, bottom 10% should be low performers. So
Even if there arent 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

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

Continuous Conversations...

Synergita.com

Survey 2

Q2

Do you follow forced ranking / bell curve in your performance ?

YES

NO

New Performance Management Practices

A peek into the performance review of companies like Deloitte and Adobes .
There are no ratings or ranking.
Adobes 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 persons performance, I would always
want him or her on my team.
This person is ready for promotion today.
Synergita.com

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 redeem them.

Total number of awards provided in the past 12 months: 2850

Synergita.com

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.
PAi provides 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

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

Synergita.com

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

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

THANK YOU!
www.synergita.com |
info@synergita.com