Performance Management Predictions for 2016 – Deloitte

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The Rush to Replace and Re-engineer Performance Management Accelerates around the World

Bersin by Deloitte (Predictions for 2016).

In a recently published research report entitled ‘Predictions for 2016’ Josh Bersin of Deloitte Consulting writes …

In late 2015, I had the opportunity to visit China, Hong Kong, and several cities in India. During these visits, I talked with many companies—some established global organizations, some government- and state-owned enterprises, and many fast growing industrial or technology companies. In every single case, the topic people wanted to talk about was performance management.

People wrote about performance management at a fevered pace during 2015—articles about the demise of ratings and the end of forced ranking, as well as the adoption of check-ins, feedback systems, and agile goal management systems. In 2016, I predict this enormous wave will likely crest and move even faster. Nearly every company may start to challenge this core part of HR. What is really happening is quite profound. We have entered a new era of “management thinking”—one which takes us to a new set of principles about how we lead and empower people, and how we set goals and evaluate performance. The core of these new models is development—how we can make the annual process more regular, more developmental, and more empowering.

Why is this occurring? There are many big drivers.

  • 1. Of course the existing process is too complex. Many managers (88 percent, in fact) believe it is not worth the time we put into it.
  • 2. The process is not developmental enough. Today we want to “build skills” in our workforce and engage our people; simply giving them goals and a rating do nothing to further this mission.
  • 3. I believe a major shift is taking place in management thinking, something that we see take place every few decades.

The whole process of performance management simply has to change. Not only has the philosophy of management shifted—we have a much younger workforce; people do not have time for long, end-of-year paperwork exercises; and, neurological research shows that ratings simply do not drive performance.

Yes,forced ranking does not always work either, as much research now shows. Interestingly, this wave of change has created a situation in which business practices are ahead of technology. In most areas of HR, innovation comes from vendors—and these vendors pioneer new ideas, which are then adopted throughout HR and learning. (For instance, e-learning was pioneered by companies like WebCT and Click2Learn; traditional goal management was pioneered by SuccessFactors and others, etc.).

In this new area of performance management, the big software vendors are all trying to catch up. While companies like Workday, SuccessFactors, Oracle, and Cornerstone OnDemand have been wildly successful building end-to-end HR and talent applications, none of them (as yet) have really nailed the “next generation of performance management” needs.

I have talked with most of the pioneers in this space (including Adobe, New York Life, Cisco, GE, and many others); almost all of these companies are building their own tools to make their new processes work. Dozens of new vendors are starting to address this market (such as Reflektive, TMBC, Simple Improvements, BetterWorks, TinyPulse, and many others); most of these are small companies and none have global scale. In 2016, these companies will likely gain a lot of traction; some of them
could be acquired.

My advice to you is this—take the time to look at what is going on out there, and make sure you are embarking on your company’s journey in a highly strategic way. Performance management is not really an HR process; it is a “management process”—and your senior leaders should be intimately involved in the discussions, development, and rollout of a change.

Finally, I recommend that you do some testing. Initiate a few pilot programs to make sure that you have the details right. Every company’s culture is different; it will likely take a few years for your new process to “stick.”

Full Research Report available at bersin.com

You don’t understand Millennials ? ….. don’t worry… you will … by 2025 – 75% of workers will be Millennials … and maybe even your boss!

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Instant Gratification, Technology, Mentoring and a Need for Constant Feedback:

This generation has been working in groups collaborating with each other since they were in elementary school. The immediacy of the social media technology they use has made it possible for them to interact almost instantaneously. A recent survey suggests that unlike Boomers who want their objectives and to be left alone to execute, Gen Y wants an almost constant stream of feedback. “…80% of millennials said they want regular feedback from their managers, and 75% yearn for mentors,” writes Schawbel.

Semi-annual reviews are frustrating to this group, they want to know how they’re doing now—not six months from now. This is a problem for managers and leaders who are used to working with people who require less attention. I’m not convinced this is a bad thing, regular feedback is appreciated by this boomer and most of my older colleagues. And, is definitely expected by the younger members of our team.

Give Me Transparency and a Flat Organization:

The traditional hierarchical organization and command-and-control management methods don’t work with Gen Y. Most of the grey-hairs sitting in boardrooms moving employees around the chess board don’t get it…yet. But they will. This train has left the station and with roughly 10,000 young people turning 21 every day, it’s predicted that by 2025, three out of every four workers will be millennials. Besides, in an economy that demands innovation to survive, command-and-control doesn’t fit.

You need an engaged workforce that takes ownership of what they’re doing and their contributions to corporate goals and objectives. I really don’t think this matters if you’re a Gen Y, Gen X, boomer or whatever we call the next Gen. Doing this requires organizational transparency into objectives and visibility into the work to ensure that everyone is on the same page.

For the most part, the millennial generation is responding to the workforce in the way we’ve trained them to—they question, they challenge and they want to do it better. Sure, sometimes it makes their older colleagues a little uncomfortable. We probably want the same level of respect we gave our bosses—back when dinosaurs roamed the earth.

With that said, the challenge for business leaders today is harnessing the talent and drive of the younger workforce to create the products and technology that will change the world. As the times, and the workforce changes, we need to reconsider how we lead people and get work done along with it …

Thanks to Deloitte & Ty Kiisel

If I were you, I wouldn’t start from here…

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There’s a well known joke about a tourist in Ireland who asks one of the locals for directions to Dublin. The Irishman replies: ‘Well sir, if I were you, I wouldn’t start from here’. Being Irish, I can tell that joke with impunity! Indeed, like some others in this category, it’s hard to tell whether the joke is actually racist, since there is something of the ‘Wise Fool’ in the Irishman’s response. After all, if you want to get somewhere, then it’s better to start from a place where you have a good chance of reaching your goal.

Now how does this relate to performance and change management? Change management is a challenging process in every respect … but it is essential to start the journey from where you actually are, rather than from where you would like to think you are. So, if your goal is to grow your business, then it is wise to ‘Take a Temperature Check’ before you attempt to tweak a model you may have inherited or even start afresh with new practices.We are delighted to launch 1872Engage+ an adjunct that enhances the efficacy of 1872Perform+.

1872Engage+ is a new cloud-based employee engagement tool that employs a bespoke scoring system measuring degrees of temperature from 2°,3°,4°,5° to 6° over 18 academically recognized competencies that contribute to measure the temperature at your company … the goal being to score an ambient room temperature of 72°F.

1872Engage+ & 1872Perform+ are simple to use, but sophisticated platforms that can deliver objective data to really get structured business CONVERSATIONS going at your company.

Now, how Irish is that?

Not a story for another day … but a reality today… oh, and of course – Made in Ireland and available worldwide, via the Cloud!

“Take a Temperature Check”

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Do you know how your employees really feel about working for your company? Are they truly inspired and fully engaged?

Would you like your company to be involved with a collaboration using an Enterprise Ireland research grant between Performance Metrics and the statistical researchers at DCU ? We are conducting a comparative research program for up to 10 companies where we will literally ‘Take A Temperature Check’ at your company and provide you with the results free of charge.

1872 Engage is a new cloud-based employee engagement measurement tool that will be launched as an online SaaS solution in the autumn. The bespoke scoring system measures degrees of temperature from 2,3,4,5,to 6 over 18 academically recognized competencies that contribute to measuring the temperature at your company…. the goal being to score an ambient room temperature of 72 degrees Fahrenheit.

The 1872 Engage process uses the intuition of employees to describe conditions at their company through a metaphor of temperature. Instead of just delivering a result of for example – ‘60% satisfied’ – 1872 Engage delivers a language to the company which describes conditions that can vary from a ‘totally under control’ ambient temperature in the mid-60’s to red hot conditions of 108 degrees F.

So whilst a thermometer reflects the temperature of the environment, a thermostat regulates the environment – if the temperature gets too hot or too cold the management team can decide what to do to correct the situation.

So if you would like to ‘Take a Temperature Check’ at your company this summer – please make contact with us.

Still using a paper-based review system? How do you manage?

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Traditional performance review systems report performance in a subjective format – paragraphs of text describing performance tracked against goals. This data is standalone for each employee and cannot be collated. Following the review, it is often popped into a drawer and not seen for another year. Thus companies are prevented from collating & presenting team or overall company performance in a concise and coherent fashion.

Still using a paper-based review system ? How do you manage? – with great difficulty we assume. A shame really, given that staff costs represent should a significant part of company expenditure. We measure everything else in the business but fail miserably when it comes to measuring the outputs of often our most expensive resource – our people.

Let us remove your unwanted paper and bring you 3rd generation metrics & values- based performance excellence! 18|72Perform+™ delivers quantitative data, per employee, per team and per company, allowing your management team to know exactly who is performing to standard within your company.

18|72Perform+ delivers a total statistical X-Ray of the business that puts the management team firmly in control of strategic people optimization. Inspect what you expect because what gets measured gets done ! 18|72Perform+™ delivers results!

Come on – join us in the 21st century – your business deserves it !

See www.1872perform.com

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1872Perform+ ‘Lets talk!’

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According to a recent Harvard Business Review article,conversation goes on in every company, whether you recognize it or not.

That has always been the case, but today the conversation has the potential to spread well beyond your walls, and it’s largely out of your control.Smart leaders find ways to use conversation – to manage the flow of information in an honest,open fashion.

One-way broadcast messaging is a relic, and slick marketing materials have as little effect on employees as they do on customers.But people will listen to communication that is intimate, interactive ,inclusive and intentional.

If you don’t have a thermostat to measure the room temperature in your office – it doesn’t mean there is no temperature – just that you don’t know what it is. Similarly – it you don’t measure the conversation in your business, you are the last to know what your staff are really saying, thinking and feeling.

It’s time to manage the conversation and truly engage with your staff. 1872Perform+ will allow you to introduce the art of a structured, metrics-based, business conversation at your company.

Inspect what you expect – because what gets measured gets done!

Hold on to your most valuable asset

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As people stay longer at a company, they become more and more productive in their roles, and hopefully they obtain additional skills to accelerate their performance over time. If we have a highly engaged workforce, this curve tips up even higher—making people more productive as they like the company and their work even more.

When an employee leaves the company for a better position elsewhere, we are forced to bring someone else in who starts at the bottom of the curve. This means we incur the:

  • Cost of hiring (often at the rate of one-half to one-third the salary of a senior person)
  • Loss of productivity (the area under the curve)
  • Diminished learning curve of the new employee

Yes, the new person may have excellent skills and perspective from the outside, but in many cases it will take one or more years to realize that benefit.

On the other hand, if we offer people a process for “facilitated talent mobility” (meaning that people move to new roles with some logic and process in place), then we can keep high performers, people are constantly being developed and challenged, the company thrives on a strong internal culture, and overall engagement increases. As people become more mobile in general, your organization has more infrastructure (e.g., career development, transition programs) to help in supporting individuals as they move from location to location, role to role, and into or out of the company.

Unfortunately, creating such a process of internal mobility is harder than it sounds. In 2015, companies should invest in this process and consider some of the following steps.

  • Make sure all posted positions are actively marketed internally and that people are encouraged to apply for internal positions. Focus your talent acquisition team on “internal talent mobility,” not just “external recruiting”—or set up another “talent mobility group” that looks at ways to improve internal hiring and internal access to
  • Create incentives and rules that force managers to let people shop for new jobs internally (one high-tech company lets employees move to another job every two years if they request), making it culturally “okay” to move from one position to another without a

One company has a rule that any employee can shop for another job internally every two years. Other companies measure and reward leaders for helping their people to move out of their group and upward in their careers, essentially creating a reward system for “talent production.”

  • Invest in onboarding and new-hire orientation, including making it clear that this is part of a manager’s As internal mobility increases, so do the number of people who are “new to their positions”—so we need to give people information, tools, and support to help them in adjusting to their new jobs. One of the biggest derailers of high- potential people is moving them to an exciting new position and not giving them the support to succeed. We suggest companies rename “onboarding” to “transition management,” and ask all managers to build training and onboarding that matches an employee’s typical job rotation.

Are You a Thermometer or Thermostat Leader?

When it comes to leadership, are you a thermostat or a thermometer? Mark, my friend and colleague, posed that odd question to me this week. He went on to explain the difference between the two.

thermometerA thermometer reflects the temperature of the environment. It simply reacts to what’s happening around it. If the temperature is hot, it tells you so. If it’s cold, the thermometer reflects that reality as well. It’s a dumb instrument in the sense it doesn’t contain intelligent, multipurpose functionality. It has one purpose and one purpose only.

A thermostat, on the other hand, regulates the environment. It sets the desired temperature of the room and actively works to maintain it within a given range. If the temperature rises above the goal, the thermostat signals the air conditioner to crank up and cool the room down. If the temperature falls below the goal, the thermostat causes the heater to turn on in order to warm the room up. The thermostat is intelligent in the sense it’s always monitoring the environment, and if the temperature gets too hot or cold, it decides what to do to correct the situation.

Thermometer leaders react to their surroundings. When the tension gets high and people are on edge, these leaders are often seen losing their cool. They become irritable, harsh, demanding, critical, impatient, and maybe even lose their temper and yell or curse. Thermometer leadership doesn’t inspire trust and commitment with people, it erodes it.
Thermostat leaders, however, constantly have a pulse on the morale, productivity, stress level, and environmental conditions of their team. When the temperature gets hot because the team is under pressure of a heavy workload, resources are scarce, or pending deadlines are causing stress, they cool things off by acting as the calming influence with the team. They take time to listen to the concerns of their team members and provide the necessary direction and support that’s needed to help the team achieve its goals. Thermostat leaders also alleviate pressure on their team by mixing in some lighthearted fun at opportune times.thermostat

Likewise, when work is slow and people are prone to just go through the motions, thermostat leaders get their teams refocused on the vision, purpose, and goals of the team. Because they are actively monitoring the environment of their teams, they know when the team needs to be challenged with new goals and priorities, or when they just need a friendly kick in the pants to stay focused on their current initiatives.

Thermostat leaders build trust and confidence with their followers, whereas thermometer leaders erode trust. When times get wild and crazy, people want to see their leaders react with calm, focused, and determined leadership. They want them to set the tone for how the team should react during tough times and navigate the rough seas ahead. That’s a tough challenge for leaders because they are team members themselves and are subject to the same, and often times more and different, stressors of those experienced by the team.

So, how would you respond to this question? Are you a thermometer or thermostat leader?

by @RandyConley