Gap Inc.

: Refashioning Performance
Management
Rizky Adhim 29116445
Reza Ariezta 29116509
Dimas P Rinaldi 29116461
Alvin Marveli 29116373
M. Arief R. 29116412
Company
Background
Gap Inc.
Employees More than 140,000 worldwide. Business activities: A global fashion
business with five brands: Gap, Banana Republic, Old Navy,Athleta and INTERMIX.
Financial results: For the fiscal year 2015, the company generated net sales of
$15.8 billion and free cash flow of about $870 million.
World headquarters in San Francisco and HQ offices in London, Shanghai, Tokyo
and Toronto, with product development offices in Los Angeles and NewYork City.
Gap Inc.s clothes are available in over 90 countries through more than 3,700
company-operated and franchise stores and several e-commerce sites
FIVE OBJECTIVES FOR THE
NEW SCHEME
Objectives for the new performance management process:
Raise the bar of performance.
Provide meaningful reward for exceeding plan and consequences for
missing.
Ensure managers take accountability for assessing, developing and
rewarding performance.
Support a shift in culture from nice to nice and honest.
Be simple.
Questions
What are the business issues?

First, what was the effect of GPS on the headquarters employees who were
using it? Had it improved their performance?

Second, GPS had been specifically designed for the knowledge workers who
made up the bulk of headquarters staff, so the team wondered whether the
tenets of GPS were applicable to store employeescould it revolutionize
performance management on the retail floor?
Business Issues

Ollander-Krane leading a team of his HR and business colleagues,

developed a process called GPSGrow, Perform, Succeed, which
completely changed the philosophy and execution of performance
management and rewards for the companys headquarters employees.
What was the effect of GPS on the headquarters employees who were
using it? Had it improved their performance?
GPS had been specifically designed for the knowledge workers who made
up the bulk of headquarters staff, so the team wondered whether the
tenets of GPS were applicable to store employeescould it revolutionize
performance management on the retail floor?
Solution and The Implementation Plan

- Four sources became major influences in Gap Inc.s new performance management
process

- 1. traditional performance management processes were developed to improve

employee productivity in factory-like settings

- 2. Employees focus on their grade, not their actual performance. He suggests that a
better way to drive performance is through frequent, informal conversations

- 3. the feedback is not doing what it is supposed to dohelp the employee better
understand the way they work, what is good about their work, and what could be
improved.

- 4. Mindset is a must read. We wanted to instill a growth mindset at Gap Inc. through
our performance management process.
Solution and The Implementation Plan

The new process had four major components

1. Performance standard

2. Goals

3. Touch base

4. Rewards