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1、Performance ManagementA Guide to ConsultingJune 2000HR咨询公司绩效管理咨询方法论1Discussion ObjectivesnProvide an overview of current thinking and trendsnDiscuss what PM consulting is all aboutnReview “what works and what doesnt”nShare Best Practices researchnReview some of the basic planning and project steps H
2、R咨询公司绩效管理咨询方法论2Group DiscussionAnswer the following questions:1. What is performance management? Why do companies have this process?2. Why doesnt it work so well? What makes it so difficult? HR咨询公司绩效管理咨询方法论3Performance ManagementnTranslates business vision and strategy in an actionable way by cascad
3、ing goals throughout the organizationnMeasures both what is done and how it is donenAligns nDepartment goals with strategic business objectivesnAligns individuals with the broader organizational/ team contextnEnsures the closest “line of sight” possibleSource: Watson Wyatt Best Practices in Performa
4、nce ManagementHR咨询公司绩效管理咨询方法论4Performance Consulting1.Total OrganizationnCascading and AlignmentnStakeholder Metrics2. Employee Review ProcessnEngagement and AccountabilitynGrowth and AchievementsTwo dimensions:HR咨询公司绩效管理咨询方法论5Performance ConsultingTotal Organization PerformancenCascading and Alignm
5、entnStakeholder MetricsHR咨询公司绩效管理咨询方法论6The Key Questions of Business PlanningnWhy does the company exist?nWhere is it going?nSize SalesnMarkets LocationsnProducts Competitive ChallengesnSBU LinkagesnHow will it get done?nValues and Operating PrinciplesnTechnology ResourcesnWhat must the company be v
6、ery good at doing?nHow will progress and success be measured?nExpectations of StakeholdersnCompany PerformanceMissionVision of FutureStrategicOrganizational GoalsCore OrganizationalCapabilitiesBalanced ScorecardHR咨询公司绩效管理咨询方法论7Business Plans are Developed by the Business UnitsResource RequirementsIn
7、dustryLatin AmericaAsia(Europe)Objectives ofthe business unitObjectives ofthe regionBottom-up-approach:Derivation of segment and corporate strategic plans and operating objectives from business unitgoals.Top-down-approach:Derivation of objectivesfrom corporate strategy Objectives of departmentsand i
8、ndividualsStrategy of the CorporationObjectives ofthe corporationPeople FacilitiesTechnology Equipment and MachineryHR咨询公司绩效管理咨询方法论8Components of a Balanced Scorecard (with sample metrics)FINANCIAL RESULTSCUSTOMER SATISFACTION BUSINESS PROCESSES LEARNING & GROWTH AFYP ROI/ROA Surplus GrowthNew sales
9、: new customersAdditional policies: current customersMarket shareCollecting premiumsCalculating selling price: new productNew licensing (Region & Corporate)Establishing the Business Case for new ventures, new locations Product Development: # innovations Competency growth Additional countries Core ca
10、pabilities growthHR咨询公司绩效管理咨询方法论9Cascading Strategic & Operating Plan GoalsCORPORATEORGANIZATIONMETRICSFinanceFinanceCustomerCustomerBusinessProcessBusinessProcessLearning& GrowthLearning& GrowthBUSINESS UNITTEAMS/INDIVIDUALSDEPARTMENTBalanced Scorecardscan provide organization alignment and account
11、ability 5 to 7 GOALS “SMART” parameters Directly alignedHR咨询公司绩效管理咨询方法论10Typical Project Timeline & Milestones*8weeks elapsed time from planning session2DaysClarify Company Strategy and determine goalsImplementationTraining and Roll out beginsImplementation PlanningWorkshopFormal AdvisoryGroup Revie
12、w Session&Follow-up1wk2wks1wk1wk1wk1wk1wkProjectPlanning, Orientationand Kick-off1Day1DayInterview Findings+Develop Measure Recommendations1DayWorkshop on TargetsFinalize TargetRecommendationsImplementationPlan ReviewReview Plan forImplementation Review TransitionStrategy2DaysFormal AdvisoryTeam Rev
13、iew1Day1Day1wk1DayExecutivePlanningSession(s)HR咨询公司绩效管理咨询方法论11Performance ConsultingTotal Organization PerformanceClients: CEO, COO, sometimes the VPHRFees: typical project is $180 - 250KTimeframe: +/- 4 monthsHR咨询公司绩效管理咨询方法论12Performance ConsultingEmployee Review ProcessnEngagement and Accountabili
14、tynClear Performance ExpectationsnGrowth and AchievementsHR咨询公司绩效管理咨询方法论13Performance Management Is.the ongoing process of setting performance expectations, providing feedback and coaching to reach those expectations, and reviewing and recognizing performance results.HR咨询公司绩效管理咨询方法论14Tie PM to the B
15、usiness CycleReview and PlanningPlanningFeedback & CoachingFeedback & CoachingMid-Year ReviewNew Year PlanningYear-End ReviewHR咨询公司绩效管理咨询方法论15Bad timing.“ “I dont want to ruin your day Herman, but tomorrow morning youre scheduled to be in my office for your annual performance review.”HR咨询公司绩效管理咨询方法论
16、16Remember The Key Questions ?nWhy does the company exist?nWhere is it going?nSize SalesnMarkets LocationsnProducts Competitive ChallengesnSBU LinkagesnHow will it get done?nValues and Operating PrinciplesnTechnology ResourcesnWhat must the company be very good at doing?nHow will progress and succes
17、s be measured?nExpectations of StakeholdersnCompany PerformanceMissionVision of FutureStrategicOrganizational GoalsCore OrganizationalCapabilitiesBalanced ScorecardHR咨询公司绩效管理咨询方法论17Organization Alignment leads to Employee Engagement COMPANYMISSIONVISIONStrategic ObjectivesCore Capabilities Competenc
18、iesLeadershipFunctional Department ScorecardSuccess ProfilesEmployee Performance ProcessIndividual GoalsEmployee Development PlansBusiness Unit Scorecard Cascading: Critical Metrics and Competencies HR咨询公司绩效管理咨询方法论18Change requires a balanced Value ExchangeEmployee Gives Employer GivesEnergyEffortCo
19、mmitmentValue AddLearningTimeOpportunityCareerBenefitsCompensationJobHR咨询公司绩效管理咨询方法论19The Performance Process can provide the keys to developmentBase PayPromotionTrainingCareer developmentSuccession planning89%77%56%51%32%Reduction in force26%Variable pay34%Current Use of Performance Management Data
20、Source: Watson Wyatt Best Practices in Performance ManagementHR咨询公司绩效管理咨询方法论20Performance Management EvolutionTraditional Recent Emerging MeasuresTraits/OutcomesBehaviors/OutcomesTime/Quality/ValueEvaluatorBossSelf/PeersCustomersOutcomesMerit PayDevelopmentOrganization SuccessImplementationDistribut
21、e FormsTrain andCommunicateOngoing Education and involvementOwnershipHRDManagementEmployeesComplianceVoluntaryMandatoryMotivationHR咨询公司绩效管理咨询方法论21Factors That Influence Process effectiveness Organization Supervisor PM Culture Skills Process The Organization Values that Support PM The Capability to M
22、easure and Discuss Performance The Interaction Between the Employee and the Supervisor People Factors Technical Factors Performance Measures Rewards Delivery PM Forms Measures that Support the Organizations Goals and Values and are Possible to Accurately Measure How and Why Pay is Linked to Performa
23、nce How the Design of the Form Supports the Process PerformanceManagementEffectivenessHR咨询公司绩效管理咨询方法论22Feedback frommultiple sourcesCoaching and feedback are integralDe-emphasison a ratingDecentralizedcontrolGreater linkagebetween pay and performanceEffective measures- Competencies- Business strateg
24、ies“Champions”sponsorshipEmployeeparticipationEmployeeinvolvement insystem designCommunication& trainingAlignment withbusiness objectives,strategy, customer needsOngoing monitoringof effectivenessof programBest PracticesElements of Successful ProgramsHR咨询公司绩效管理咨询方法论23High Impact Performance Manageme
25、ntKey elements found in all “best practices”nEmphasis on looking forwardnPlanning and developmentnJoint process with employee ownershipnCooperative goal settingnFeedback (continuous, multiple sources)nDevelopmental focusnPay and performance linkageSource: Watson Wyatt Best Practices in Performance M
26、anagementHR咨询公司绩效管理咨询方法论24Use of Key ElementsDevelopment PlanningMulti-source ratings14%14%65%65%81%81%84%84%94%94%97%97%Goal SettingTeam standardsNo ratingsCompetencies/behaviorsSource: Watson Wyatt Best Practices in Performance ManagementHR咨询公司绩效管理咨询方法论25Evolution of Performance FeedbackTop DownSe
27、lf-AppraisalPeer ReviewsUpward FeedbackInternal CustomersExternal Customers3600ReviewHR咨询公司绩效管理咨询方法论26Does it make a difference?Employees are eligible for stock plan programs1.8%Company terminates employeeswho perform unacceptably1.8%Company does a good job of helping poor performers improve1.5%Top
28、performers get significantly more pay than average performers0.8%Company positions pay above market0.4%Employee performance appraisals used to set pay0.4%Employees participate in profit- sharing plan based on firms overall success0.6%Pay is linked to companys business strategyHR咨询公司绩效管理咨询方法论27The Pe
29、rformance MatrixOResults“what”Behaviors“how”Std =100% ofexpectedStd =100%alignmentNIHNIWFMEEKey:O = OutstandingEE = Exceeds ExpectationsM = Meets Expectations (80 - 90% of population)NIH = Needs Improvement on “HOW”NIW = Needs Improvement on “WHAT”F = FailingHR咨询公司绩效管理咨询方法论28Project StepsProject Pla
30、nning, Education and Assessment: ClientFirst, scope and timetable, design team education, PM design matrix, document review, interviewsDesign: Straw-man designs, implementation planning and scheduleTesting and Approval: Presentation, senior management assessment, sign-off, editImplement: Communicati
31、on rollout, modular training rollout, useReview/Revise: Gather feedback, test and revise1 12 23 34 45 5HR咨询公司绩效管理咨询方法论29Performance ConsultingEmployee Review ProcessClients: VPHR, Dir. Comp and/or ODFees: typical project is $85 - 130KTimeframe: +/- 3 months (excludes implementation)HR咨询公司绩效管理咨询方法论30
32、Think “Implementation”nA successful process is 25% design and 75% implementation!“ “Its never to early to think about implementation. . .”Peter DruckerHR咨询公司绩效管理咨询方法论31Best Practices in ImplementationnDetailed communications and training strategynPro-active problem identificationnBroad buy-innSenior
33、 management involvementnMeasurement of system effectivenessSource: Watson Wyatt Best Practices in Performance ManagementHR咨询公司绩效管理咨询方法论32Utilize Best Practices in Change ManagementnVisible senior management supportnOngoing communicationnBest practices and stakeholder researchnHigh involvement and br
34、oad buy-innCareful planning, rapid processnComprehensive approach to implementation and monitoringnTraining in intact work teamsSource: Watson Wyatt HR21 StudyHR咨询公司绩效管理咨询方法论33UnderstandingRealize how“my work” is different because of the changeCommitmentBelieve in the system and process for change .
35、 . . in shared accountability for making it successfulAcceptanceAgree to value or merit of change. Recognize advantage of “future state”ActionAdopt new behaviors = become engaged in the change process. Champion changes internallyBehavior Change ModelEFFORTAwarenessHR咨询公司绩效管理咨询方法论34A Quick SummarynPe
36、rformance management continues to evolvenNO one perfect solutionnnot much magicnImpact: great if done rightnBest practices for ideasnThink implementation early and oftennUpdate and keep freshHR咨询公司绩效管理咨询方法论35Ongoing TrackingTimely Communication& Skills TrainingConnection between Rewards & Performanc
37、eDirect Link toInstitution MissionSenior Leadership InvolvementEmployee “Ownership”Objective Feedback& ReviewCritical Success Factors for an effectivePerformance Management processHR咨询公司绩效管理咨询方法论36Key Human Resource LinkagesBase PayTrainingSuccession Planning/PromotionsCareer PlanningIncentive Pay10
38、0%100%97%97%95%95%85%85%80%80%Source: Watson Wyatt Best Practices in Performance ManagementHR咨询公司绩效管理咨询方法论37HR StrategySuccessionPlanningRewardsWorkDesignSelection& StaffingPerformanceManagementTraining & DevelopmentIntegrate PM with HR StrategyHR咨询公司绩效管理咨询方法论38Performance Management TeamMethodology and ToolsnBrian Brown (Cleveland)nBrad Carter (San Francisco)nCassandra Frangos (Boston)*nDavid Gore (Toronto)nJim Stewart (Boston)*to Kaplan and Nortons Balanced Scorecard Collaborative HR咨询公司绩效管理咨询方法论39Performance ManagementA Watson Wyatt Guide to ConsultingJune 2000HR咨询公司绩效管理咨询方法论40
