Performance Management presentation

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Making it Stick: How to make sure your new Performance Management System catches on and stays!

Large projects often fail and there potential is never realized:

People don’t get onboard and eventually resources dry up and leaders begin to push for abandoning the project.

How can you make sure that your new custom performance management system will be a success?

There are 8 guidelines to keep in mind when planning and implementing your new systems rollout….

Leading the Charge: How should you introduce the new performance management system to the company?

A one-and-done e-mail to the staff will not suffice!

Effective Change Management will require getting people actively involved in the process:

Everyone should be working towards the common goal of adopting the new system

Resist the urge to push the project forward without making sure that people see the reasoning and value of the change, and are ready to use the new system.

Effective Change Management:

Increases success rate of Organizational Change by 96%

Makes projects 6 times more likely to meet and exceed expectations

Make the Case: Convince people that the new performance management system is a good idea!

People are naturally averse to change even when they know its for the best!

Neuroscience tells us that change triggers stress….

Stress triggers fight or flight hormones!

Therefore the case for your new system should have both a rational and emotional appeal.

The Rider and the Elephant: An analogy about rational thinking and emotional response by Chip and Dan Heath, in their book “Switch”

The Rider is the rational side, diligently processing facts, providing direction and analysis

The elephant is the emotional side, but it ultimately does the work of moving the rider from place to place

You can explain anything to the rider, but if the elephant decides its going another direction, then its impossible to stop

You need to appeal to appeal to both the rider and the elephant

Even if people see the reasoning behind your proposed changes, they wont stick if their hearts aren’t in it

Start with the Business Side: Appeal to the rider!

Ask what the old performance management system cost in actual dollars and cents

Gauge the amount of time and resources spent on the current system

What is the opportunity cost of not making the change?

Analysis by CEB Inc. found that the average manager spends 200 hours a year planning for and conducting annual performance reviews

Average employee spends 20 hours a year planning and participating in performance reviews

With 4,000 employees and 500 mangers, at an average rate of $50/hour, that’s 8.5 million dollars invested in performance

Is your company getting a good return on this investment?

Now Appeal to the Elephant: Your pitch needs a tangible representation of the need for change!

Consider adding….

Quotes from your focus groups

Videos of your people sharing their thoughts on the current approach

A huge pile of paper that represents one years annual reviews

Share your findings from the research you conducted earlier, and emphasize the human side of the equation.

Pull your people into your vision of the future and give them a plan of what to expect!

Plan the Change: Conduct an Impact Assessment to asses the changes that the new system will have on your organization

Role Changes

Will the new system change the expectations for certain roles in the company?

Manager Expectations

How will managers be success be determined now?

Skill Gaps

What new skills will managers need to be trained on?

Employee Empowerment

Get employees comfortable with asking for feedback

Beware of Change Fatigue:

When employees go through too many changes at once, turnover, project failure, productivity loss, absenteeism and disengagement increase!

Time your rollout so that no one group of employees must endure too many changes at once

Create Your Plan and Gather Your Champions:

A great change plan will contain the following:

The who (Stakeholder groups that will be effected)

The what (The type of change activity, like planned communications or events)

The when (The right time to reach each group with content or engagement)

Build a coalition of advocates to support your change efforts

Someone from each major stakeholder group

They will be well versed in the new system and the process of getting there

Their mission will be to promote enthusiasm in their groups

They will share information with their people and also provide you with feedback

Expect your new approach to encounter resistance

Resistance shows up in variety of ways

-Fear of loss

-Uncertainty

-Surprise

Resistance also expresses itself through

-Change fatigue

-Fear of incompetence

-Fear of increased workload

Expect Resistance:

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It is always wise to pay special attention to “the boss.”

Meet leaders where they are and build a plan

pace your progress, and maintain your resolve

Be diplomatic and creative make sure they understand the real costs to your business

Many organizations suffer being over-managed and under-led

Most organizations have historically underinvested in building great leaders

Defend against the Naysayers:

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Defend against the Naysayers (Cont.)

Defend against the Naysayers (Cont.)

Peel your own onion to get at the root of manager concern

There is need of a paper trail to document behavior and performance problems

We tend to rate people too leniently and to downplay

Avoid the potential pitfall by documenting issues as they arise

Majority of organizations still use a traditional system

Organizations should reward equitably in new and innovative ways

Attention certainly doesn’t hurt their employer brand 

Currently, forward-thinking organizations try to drive organizational performance

 Positive exposure is essential for innovative programs

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Build your Courage

Organizations should get ready for the journey

Leaders should take time to educate themselves

Managers should know their stuff

Knowledge is key to building your confidence and courage

Organizations need courage to move forward

Managers should understand things that does not work

Organizations should try new things

Leaders should create trust from the employees to lead the way

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