Welcome to Best Practices in Performance Management: Can the Process be Stressfree

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Welcome to Best Practices in Performance
Management Can the Process be Stress-free?

• Sharon Armstrong, Human Resources 911
• Stan Surrette, Ed.D., ManTech International
• Mike Humenik, Dinte Resources

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• What is one word
• that describes one
• of your more memorable
• performance appraisals?

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• How
• would your employees
• answer
• that question?

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Ranking What Employees Want
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Ranking What Employees Want
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Ranking What Employees Want
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How Many Employees are Engaged?

• Engaged
• Disengaged
• Actively Disengaged/Bitter

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Engaged Employees in the U.S.

• 29 Engaged
• 55 Disengaged
• 16 Actively Disengaged/Bitter

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Engaged Employees outside the U.S.

• UK 17 Engaged
• Germany 16 Engaged
• Japan 9 Engaged
• France 6 Engaged
• Singapore 4 Engaged

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ManTech International

• Incorporating Best Practicesin a New
  PerformanceManagement Program
• Stan Surrette, Ed.D.
• EVP, Human Resources

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Program Objectives

• Establish and communicate performance
  expectations
• Foster ongoing communication between managers and
  employees about performance
• Support managers in making performance
  evaluations meaningful
• Fair, objective, and constructive
• Reflective of actual performance levels
• Useful in making compensation decisions
• Encourage employee development
• To improve individual and company performance
• To support employees with career development

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Approach Key Assumptions

• Address performance from a tiered perspective,
  building on each levels capabilities
• Individual contributors
• Managers
• Executives
• Involve employees
• Self-ratings
• Goal setting
• Make the program easy to access and administer
• e-performance

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Program Elements

• What is done business objectives and
  accomplishments
• How work is done competencies important to
  success in the company
• Tied to the companys mission and values
• Reflective of the jobs actually performed
• Development Plan focus on the future
  throughgoal-based action planning
• Business goals tied to company/department goals
• Professional development goals

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Objectives and Accomplishments - Components

• Specification of key objectives and tracking of
  accomplishments
• Ongoing priorities as well as projects completed
• Specific and measurable
• Quarterly updates with manager
• Annual evaluation
• Comments by manager
• Overall manager rating

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Success Factors - Components

• Competencies that facilitate success
• Universal all employees
• Job-Specific
• Self-ratings and manager ratings
• Creates communication
• Clarifies expectations
• Comments
• Overall manager rating

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Success Factors Levels of Performance

• For each Success Factor, behavioral descriptors
  define Low, Solid, and Outstanding performance
• Serve to clarify expectations
• Help managers and employees differentiate among
  the performance levels, resulting in variance in
  ratings
• Not everyone is Outstanding

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Example Teamwork
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Rating Scale

• Low Performance Regularly fails to meet
  expectations. Job performance is below an
  acceptable standard. Deficiencies must be
  corrected and better performance attained in the
  future.
• Mixed Performance Occasionally does not meet
  expectations. Employee is developing the
  competencies or skills required for the position.
  Requires a lot of direction and coaching from
  manager.
• Solid Performance Consistently meets
  expectations. Achieving expectations is a
  significant accomplishment given the company's
  high standard of performance. The majority of
  employees will fall into this category.
• Excellent Performance Often exceeds
  expectations. Requires little direction and
  coaching from manager.
• Outstanding Performance Regularly exceeds
  expectations, performing all job functions in an
  exceptional manner while making outstanding
  contributions to ManTech International. Sets an
  example for others.

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Development Plan Components

• Professionaldevelopment goals
• Ongoing/completed
• Progress
• Accomplishments
• New
• Action steps
• Timeframe

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Focus on the Future Development Plan
(continued)

• Key business objectives
• Ascertain responsibilities/business objectives
  that are most critical in the coming year
• Review job description and, if applicable,
  company objectives and principles

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Development and Implementation Key Steps

• Get Corporate and Division executive buy-in
• Approach, content
• Online tool (e-performance)
• Business rules (timelines, sign-offs, etc.)
• Get employee buy-in
• Conduct focus groups
• Communicate plans and objectives
• Provide training
• Manuals
• Training sessions

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Summary Incorporating Best Practices at ManTech
International

• Foster ongoing communication and feedback
• Link individual goals to company/department goals
• Define competencies and behaviors required for
  success
• Reinforce company mission and values
• Communicate expectations
• Help ensure fairness and objectivity
• Link compensation to performance
• Allow flexibility in weighting goals vs.
  competencies
• Focus on employee development
• Ensure employee involvement and ownership
• Involve senior management
• Gain their active support and participation

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Ranking Employees Lessons Learned

• Mike Humenik, COO
• Dinte Resources

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Enhancing the Process A Case Study
Prior Year Enhancements Rating
Scale Most Valued, Highly Valued, Most
Valued, Highly Valued, Valued, Limited Value
Limited Value An additional
category Valued was added to better
differentiate the employees who were in the
Highly Valued rating and allow clearer
definition when assessing those with Limited
Value ratings. Ranges 30 MV,
60 HV, 10 LV 25-30 MV, 45-55 HV,10-15
V, 5-10 LV Ranges are approximate
guidelines apply to groups
of 30 . Teams/groupings of small numbers
use judgment on distribution Document
More text space added Deleted Skills
Assessment Category Added Individual
Experience Summary Sample Performance
Summary Documents
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Evaluating Performance

• Evaluate employees performance relative to
  Performance, Skills, and Values.
• Plot them relative to peers and assign
  performance ratings. We should not normally blend
  career bands in forming peer groups.
• Several performance rating distributions may then
  be rolled up.
• All performance rating distribution should have
  an appropriate distribution. Please use the
  ranges as guidelines (25-30 MV, 45-55
  HV,10-15 V, 5-10 LV).
• Record the employees performance rating on the
  Annual Performance Summary.
• Employee Notification Because Performance Rating
  requires iterative processes, employees should
  not be notified until their final ratings
  approved.
• Personnel and Pay Decisions should be consistent
  with the employees final rating.
• Note New employees will generally not be ranked
  and will be designated New employee or New to
  assignment in the Highly Valued performance
  category.

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Performance Terminology
Guidelines are approximate and apply to groups
of 30.
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Rating Characteristics

• Most Valued (MV) Characteristics
• Performance when compared with peers consistently
  exceeds established performance goals..more,
  new, higher quality, faster, cheaper, greater
  customer impact. A strong contributor to business
  results
• Thinks outside the boxbeyond own job,
  innovative, strategic thinker, sees synergies,
  involves others, team player
• Flexible knowledge/skills willing and able to
  play many roles, can adjust to changing business
  priorities
• Critical skills and technical expertisesought
  out for knowledge/expertise, leading edge
  skills
• Embraces and exhibits Valuesa role model

• Highly Valued (HV) Characteristics
• Performance when compared with peers consistently
  meets and may exceed some established performance
  goals a solid contributor
• Considers the impact of their job/decision on
  others. May be involved in/lead strategic
  projects
• Skills and knowledge at expected or higher
  levels may be considered a subject matter expert
• Valued skill set
• Exhibits Values

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Rating Characteristics

• Valued (V) Characteristics
• Performance when compared with peers generally
  meets established performance goals
• Skills and knowledge at expected levels
• Exhibits most Values

• Limited Value (LV) Characteristics
• Performance when compared with peers is lower
  lower value added
• Does not meet all performance goalsnot enough,
  poor quality, minimal customer skills, below
  expected levels
• May not exhibit all Values

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Evaluating Based on Performance

•  
• Performance is still a key factor among the 3
  drivers of Performance / Skills/ Values
• Performance assessment is done only by immediate
  manager and those with direct knowledge of
  current performance
• Once performance is assessed, performance ratings
  must be locked in during roll-up of Performance /
  Skill /Values
• Key performance assessment guidelines
• Assessments must be based upon a thorough
  understanding of the position to be appraised.
  Competencies and behaviors necessary to perform
  the job must be identified
• Objective measures should be used where available
  and be based on quarterly goals tracker
  accomplishments / feedback where available
• Assessments should focus on observable job
  behaviors
• Assessments should be reviewed with employees,
  and there should be an appeal process

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Evaluating Based on Skills and

• UNIQUE SKILL/EXPERTISE OR ROLE
•  
• In limited circumstances, an employee may
  demonstrate special value to the Company by
  possessing one or more of the following
  characteristics
•  
• Unique skill - employee recognized as having a
  unique knowledge/skill in a specialized area
  necessary to perform the job that would be
  extremely difficult to replace  
• Unique Expertise employee has gained extensive
  on the job knowledge that would be extremely
  difficult to replace
• Unique Role employee is in a role that has a
  very special impact on the business  

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Evaluating Based on Values

• Values measured on the following categories
•  
• Relentless Focus on Customer Success
• Understands a customers business as a system of
  integrated/interdependent processes.
• Takes steps to understand the customers
  environment and industry.
• Proactively champion customer satisfaction and
  top line growth.
• Demonstrates a passion for customer excellence
  and customer responsiveness.
• Delivers the highest quality of service and
  support to our Customers.

Continued on next slide
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Values, continued

• Highest Standards of Personal Integrity Drive our
  Actions
• Demonstrates ethical behavior, honesty, fairness,
  and trustworthinessexpects the same from others.
• Assures that business is conducted in compliance
  with the spirit and letter of company policies,
  and government rules and regulations.
• Encourages open communications and assure prompt
  attention to potential integrity concerns.
• Energized Teams that Produce Great Results
• Executes, makes difficult decisions, sets stretch
  targets and consistently delivers with energy,
  speed and the desire to win.
• Removes barriers and builds cooperation between
  people and teams functionally and
  cross-functionally.
• Energized and engages others to excel in every
  aspect of their work.
• Collaborates cross-functionally ensuring all
  required teams/people are involved with customers
  and internal results.

Continued on next slide
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Values, continued

• Continuous Innovation that Delivers the Future
• Uses appropriate technology, tools and methods to
  deliver superior results and expertise to daily
  work.
• Delivers value proposition with proven technology
  that addresses real business problems.
• Sets and drives aggressive pace to deliver new
  products or upgrade existing products with market
  potential.
• Inclusive Environment that Embraces Talents of
  all Individuals to Unlock Creativity
• Appreciates differences of time, geography,
  language and culture by operating flexibly and
  sensitively in the global marketplace.
• Promotes open dialogue- listens carefully and
  non-defensively to various points of view.
• Seeks and develops the talents and abilities of
  all members of the diverse GXS community.

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Summary
Performance Feedback Is the Opportunity To Change
The GameIt Is The Key To Positive Business
Results
If you have questions about this process, please
speak with your Human Resource Manager
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Wrap-up and Questions Performance
ManagementBest Practices

• Sharon Armstrong
• Human Resources 911

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Current Best Practicesof High Performance
Businesses

• Actively seek to align individual goals with
  corporate goals
• Encourage employee participation and ownership in
  the process
• Use their performance management system to
  establish and reinforce the importance of the
  organizations core competencies

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Current Best Practicesof High Performance
Businesses

• Use their performance management system as the
  primary driver in transforming into a
  results-driven organization
• Use their performance management system to
  develop an environment where employees and
  managers are able to display relationships
  between their performance management systems and
  human asset management results (e.g., retention,
  development, succession planning)

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Current Best Practicesof High Performance
Businesses

• Implement training that develops skills and
  builds commitment
• Continuously monitor and improve their
  performance process
• Hold managers accountable
• Performance management strongly supported at the
  senior-level

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• Questions?

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• Achieving good performance is a journey not a
  destination.
• - Ken Blanchard