Background:
DC was created as an economic development corporation in response to the 2009/10 recession to
stimulate economic growth by attracting investment dollars, physical capital, and job creation.
Headcount: 225 employees, Annual operating budget: $100 million
Jurisdiction: Canada, US, and Asia/Pacific region
Problems:
1. Confused leadership and management accountabilities
2. Poor internal governance
3. Inadequate management practices
4. Almost non-existent performance management let alone performance pay incentives
5. Disengaged workforce with increasing levels of turnover
The organization (DC) badly needed a transformation strategy and create a foundation for a high-
performance culture. From its inception, the organization was conceptualized to be a high-
performance culture built on its core values.
Core values:
1. Result-driven
2. Teamwork
3. Innovative thinking
Strategy implementation Challenges: There would be a level of political and public scrutiny on
every strategic move at DC.
Developing and implementing HR strategy:
1. Clarity of roles, Renewed accountability
2. Performance measurement
3. Performance Management
HR Presentation:
1. The summary diagnostic and related business case for change, including possible HR strategy
implications? -- 2 slides -- Mohamed
2. As the foundation for an employee-focused performance management program (PMP),
what DC’s enterprise-wide performance management framework should look like?
- Based on up to 6 core performance categories with enabling indicators (no more than 2 to 3
indicators per category)
--- applicable models and methodologies? --Rachna
3. A corporate-wide PMP framework for employees to include:
a. Guiding principles and scope of application
b. A one size fits all approach or segment-specific
c. Performance categories and whether they should be aligned with the above point or
unique to employee
d. Performance category weightings reflecting “line of sight”:
e. Enterprise-wide vs individual
By level [i.e. variations for executive and middle management, and then for front
line employees]
f. Competencies or not, should they be used for development purposes only or rated
for overall rating purposes and variable pay rewards?
g. Rating Architecture – one common performance rating scale for all individuals or
multiple scales for a different type of work? -- Rachna
4. The suggested approach to implementing recommended changes. – 3 slides -- Eddie
5. Other key considerations and risks associated with implementation and sustainable
execution? -- 2 slides -- Darryl
Guidelines:
Slides: Maximum 12 to 15
Submission: Hard copy of the presentation to be submitted at the beginning of the class
MBO model:
Management by objectives (MBO) is a strategic management model that aims to improve the
performance of an organization by clearly defining objectives that are agreed to by both
management and employees.
For example, if you work in customer service, your goals could be to increase customer satisfaction
by 13% and reduce customer call times by two minutes.
1. As the foundation for an employee-focused performance management program (PMP),
what DC’s enterprise-wide performance management framework should look like?
- Based on up to 6 core performance categories with enabling indicators (no more than 2 to 3
indicators per category)
DC’s Performance management program will effectively be used to drive accountability,
quality, productivity, competence, rewards and recognition. The employee focussed
performance management program will focus on the following areas:
1. How to align organisation-wide and individual goals
2. How to reward good performance (without ratings and rankings)
3. How to identify poor performers
4. How to mitigate the risk of discrimination and bias
5. How to manage the volume of feedback being given and received (which
might be overwhelming for some staff, and insufficient for others)
Core performance categories with enabling indicators (no more than 2 to 3 indicators per category)
--- applicable models and methodologies? –Rachna
However, there are some general employee performance measurement metrics that can
help measure performance better. These metrics when used in conjunction with qualitative
performance reviews, can give a more accurate assessment of performance.
a. Efficiency
overall efficiency is the best indicator of an employee’s performance.
Efficiency is the output you get for a certain amount you put in, and has a strong
impact on business success as a whole.
- Deadlines for the completion of the task
- Number of tasks completed
- Poorly executed work, if any
b. Quality of work/Efficiency
- No of issues identified
- Bug free releases
- Manager’s Feedback
c. Innovation
-
d. Alignment with the goals with the organization
-
e. Team player
It is an important trait to foster a culture of teamwork and helps the team
perform better when approaching a complex problem and solving it as a
group.
- 360 Feedback
- Pulse Surveys
Pulse surveys can be used to get employees to self-report events they
have helped their teammates or solicit feedback with questions like
“who would you like to thank for going the extra mile?” Managers can
also keep track within their project management software of the
number of projects assigned vs. the number of projects the employees
volunteer for.
f. Adhereness to timelines
- Maintaining schedules
- Consistent in time delivery
- Training completion
https://thinkingportfolio.com/6-key-performance-indicators-to-use-to-ensure-success-with-your-
project-portfolio/
https://www.profit.co/blog/performance-management/top-5-employee-performance-metrics-you-
must-track/
2. A corporate-wide PMP framework for employees to include:
a. Guiding principles and scope of application
The following principles should guide the development of your performance management framework.
1. Leadership
Empower organizational leadership to provide clarity
Invest in training managers to give them the skills they need to engage their teams
Involve managers in developing performance management plans
2. Open communication
Make performance management a continuing and collaborative process between managers
and employees
Managers should be trained in how to give constructive feedback and set clear expectations
about performance
Encourage an open-door policy between managers and employees. HR should also be
available to employees requesting guidance or support
3. Agility
Be open to adjusting the performance management policy as needed based on metrics and
feedback
Empower managers and teams to discuss results and pivot when required
Risk-taking should be encouraged
4. Promote employee engagement
Give your people the ability to add value and actively participate in performance management
with regular strategy meetings, check-ins, and training
Adapt the performance management process for different segments and departments while
keeping individual objectives aligned with organizational goals
Recognize and celebrate successes with formal and informal shoutouts recognizing individual
or team achievements
5. Keep it positive and constructive
Performance management should focus on professional development
Address underperformance separately from ongoing performance management
Harness technology to implement and monitor your performance management strategy, but
don’t forget to keep it human with regular face-to-face (IRL or by video) check-ins
6. Addressing under-performance
Sometimes an employee is simply not meeting targets and their underperformance is not
linked to failures in management. In such cases, it is important to have a process for
corrective action in place that is respectful of the employee but prioritizes organizational
continuity.
Call the employee in for a performance appraisal. If performance management has been
ongoing, the employee will not be surprised that they haven’t achieved what was expected
Give the employee a corrective performance plan with clear expectations for improvement,
including a timeline and clear objectives
Offer support to achieve these improvements; consider offering additional training or
mentorship, and take care to maintain ongoing communication with the employee to swiftly
address any pain points
If the objectives outlined are not attained, and management and HR agree that efforts to assist
the employee aren’t sufficient, consider beginning the parting-ways process
b. A one size fits all approach or segment-specific
Fundamental Shift #4: Abandon uniformity.
Shift from: One size fits all
Shift to: Customized and nuanced
Every organization is different, so there is no one size fits all approach. Also when it comes
to assessing an employee’s performance, there can be a lot of aspects that are very
subjective, making it difficult and challenging to compare fairly across different management
levels and teams.
Adapt the performance management process for different segments and departments while
keeping individual objectives aligned with organizational goals
instead of blanketing entire organizations with the same
solution, we built more flexible systems that allowed our people
to choose what worked for them, either as an individual (when
appropriate) or as a work group inside the organization?
Imagine the power of an organization that builds programs
differently for groups or individuals with unique needs, so that
those programs and policies accurately reflect the requirements,
maturity, location, and desires of the people they support.
Instead of a performance management system that says, “Here’s
how you need to do this,” imagine one that allows each team,
department, business unit, job family, or individual to configure
its own customized approach.
https://bthechange.com/8-ways-to-shift-from-the-traditional-performance-management-process-
22842ee7e40d
Need an example? What I am talking about is allowing your
sales team in California to handle performance management
differently than your software developers in Pakistan or your
factory workers in Vermont. When I put it that way, it seems
painfully obvious, right? Those disparate employee groups have
practically nothing in common, and treating them as if they do
makes no sense and often has negative performance effects, not
to mention the bureaucratic hassle of forcing people to comply
with programs that don’t work for them. Move away from the
cut-and-paste bureaucracy with standard, vanilla rules and you
can pride yourself on being a company that shows its employees
that their individual needs and styles matter.
Think about it as if you’re trying to create a menu that provides
meal options for defined segments of your organization. First
you might establish some common rules, such as asking that
each of the segments include the main course and one or more
of the three vegetables listed on your menu. But beyond that, it’s
up to them; let them decide if there will be an appetizer, a salad,
extra sides, or a dessert.
c. Performance categories and whether they should be aligned with the above point or
unique to employee
Common + customized
d. Performance category weightings reflecting “line of sight”:
e. Enterprise-wide vs individual
By level [i.e. variations for executive and middle management, and then for front
line employees]
f. Competencies or not, should they be used for development purposes only or rated
for overall rating purposes and variable pay rewards?
Competency-based
Instead of measuring performance according to measurable outcomes, specific tasks, or
work- related behaviors, this project management method focuses on performance as
measured against specific competencies assigned to each individual position.
Competencies can be broken down into core competencies and behavior indicating the
individual possesses these competencies. For example, “empowering others” is the core
competency your organization and the observable behaviors are:
Lets people make decisions regarding their work
Encourages others to achieve individual and group goals
Provides positive reinforcement
Avoids micromanaging and encourages collaborative problem solving
g. Rating Architecture – one common performance rating scale for all individuals or
multiple scales for a different type of work? – Rachna
360-degree performance appraisal
This method involves collecting information about the individual’s performance from
supervisors, colleagues, or employees they manage. This group review focuses on employee
development, getting feedback from a range of sources to inform performance management.
Relevant stakeholders will be asked anonymously about the individual’s work-related
behavior and about the impact this has on operations. Appraisals consist of online forms that
give respondents the opportunity to provide feedback about the subject’s competencies. This
can be done using any rating format, for example, a Likert scale:
your categories may include individual performance, department
performance, company performance and training. Under each cat
How to Use a Weighted Performance Score for Raises (bizfluent.com)
https://bestpractices.clearcompany.com/competency-reviews/index.html
