Why Traditional Performance Management Can't Deliver Peak Performance

  Aryaduta Hotel-Jakarta, 14 August 2014 By Yunus Triyonggo HR Practitioner

  Reasons

  Performance Management

Can't Deliver Peak Performance

  Daniel D. Elash, Ph.D. (2009)

  

What is Traditional Performance

Management ?

Traditionally, performance management systems concentrate on performance planning and evaluation, rewards and discipline , according to the 2000 Performance Management Survey (2000)

  Source : David D. Dubois & William J. Rothwell, 2004

  

Reason #1

• They are too slow. occur at

• – To be truly educational, feedback has to the speed of business circumstances.

  follows directly on the

• – It is most powerful when it heels of performance.

  fresh it can be more deeply

• – When feedback is

  discussed, considered, and incorporated in a timely fashion.

reduces the ability of teammates to talk directly to each other

  

Reason #2

They are too remote

• – Too often the voices of customers, teammates and co-workers are filtered and delivered through the manager.
• – Managers can't effectively explain or clarify issues

  and situations with which they aren't familiar .

• – Placing the manager between teammates often

  

Reason #3

They are too vague (samar-samar)

  specific, focused,

• – Useful feedback is

  actionable, and relevant to a particular situation or set of circumstances. level of explicitness that is seldom reached

• – This requires a with current performance management systems, which rely on annual, or bi-annual performance reviews.

  broad behavioral

• – Evaluated dimensions are often categories such as "responsible," "reliable" and "industrious." Such terms open the door for heated debates about their exact meanings in specific situations.

  Reason #4

They are too emotionally laden (sarat)

  

mind is best prepared to grasp new

• – The information, think effectively and learn when it is clear and focused.

  more

• – Understanding, thinking and learning are

  complicated when a person is anxious, self- conscious, angry or defensive.

  Reason #5

They are too focused on each individual alone

• – Optimizing your own performance without regard to your impact on others, or the synergies required for effective teamwork, is insufficient today.
• – A successful company isn't a collection of individuals performing independently; it is a networked, interdependent system that operates as an organic whole.
• – Feedback has to relate to individuals, but within the context of the whole interdependent system.

  

Challenges

Complexity Revenue Company _{300% 400% 150}

  29% _{100% 200% 0% 100 50 Aligns Not Align} 71% _{1997 2012} year 1 year 2

  However, according to a study by The Boston Teams that focus on performance Only 29 percent of companies

  Consulting Group (BCG), business complexity management have been shown to create individual goals aligned to has increased between 50 percent and 350 generate as much as 30 percent more the organization

  revenue per full-time employee than percent over the last 15 years.

  average teams

  Employees perceive the linkage Working spend between individual goals and corporate _100% goals _Strategic 26% 48% ^{Non strategic} _{50% Strong} 50% 50%

  74% _{Weak 0% Mid level Lower Level} 52%

  Up to 50 percent of employee time is spent A full 52 percent of midlevel managers and 74 percent of lower-level employees perceive the linkage between working toward nonstrategic objectives individual goals and corporate goals as very weak

  An Oracle White Paper, June 2012 Are we capable?

YES We have to !!

  The Answer is…

  What is a Competency? Observable abilities, skills, knowledge, motivations or traits defined in terms of the behaviors needed for successful job performance.

  The Iceberg as an Analogy

  What is Competency-based Management?

An HR management approach that

  standardizes and

integrates all HR activities based on competencies that support organizational goals. Basic Competency Architecture Why competencies? Competencies translate the strategic visions and goals for the organization into behaviors or actions employees must display for the organization to be successful .

The Benefits of better Employee competency

  63% reduction in turnover due to increased employee satisfaction

• – due to greater clarity

  63% about performance expectations

  19% improvement in employee performance 19%

  12.5% increase in sales and profits due to Competency-based training programs

  12.5% (Source : Spencer, 2001)

The Benefits of better Employee competency

  Improved leadership capacity

• – Companies with highest rated leadership development programs, compared to those with weak programs experienced:

  increase in overall business impact

• 600%

  improvement in their leadership bench strength

• 640%

  improvement in leader engagement and retention

• 480%

  (Source : Bersin, 2007)

Superior Talent Management = Significant Advantages

  higher revenue per employee

  The Benefits of better Employee competency

• – 26%

  less likely to have downsized during 2008-2009

• – 28%

  lower turnover among high performers

• – 40%

  lower overall voluntary turnover

• – 17%

  greater ability to “hire the best people”

• – 87%

  greater ability to “respond to changing economic conditions”

• – 92%

  greater ability to “plan for future workforce needs”

• – 144%

  greater ability to “develop great leaders”

• – 156%

Competency-based Performance Management

• • Competencies define the behaviors necessary for goal achievement

• They facilitate a developmental approach to performance management
• Three Stages of Performance Management

  How to integrate Competencies in the

Performance Management Process

  competency profile for the employee’s role / job will necessarily be assessed within the cycle

  the competency profile for the employee’s role / job are evaluated key competencies for the effective performance during the review cycle, but not

  All competencies defined in

  the employee conducted him/herself to accomplish their work

  “how”

  must be accomplished during the review period, and the competencies measure

  “what”

  as the complete set of competencies from the competency profile for the employee’s role / job The performance goals / objectives address

  goals / objectives for the review period as well

  By integrating the competencies for the employee’s job into the PM process The performance plan includes the performance

  Not all competencies within the

  Option #1 Option #2

  employee’s performance goals for the performance review cycle.

  are entirely consistent with the

  the competencies being assessed

  key competencies associated with each goal.

  objectives as well as the

  the performance goals /

  At the end of the performance cycle, the employee’s performance is evaluated in relation to

  Performance Goal / Objective The manager and employee identify the key competencies required to achieve each performance goal / objective ( typically 1 to 3 competencies per goal / objective)

  needed to perform each

  By defining the competencies

  included in the competency profile, will not be assessed

Integrated Performance Management System

  Succession Planning

  Goal Setting Multiple years of Performance creates basis

  Sustained Performance for judgement of

  Jan-Feb Level High, Medium, Low

  Year end Interim Review Review

  Dec-Feb Jun-Aug Performance

  Talent Day Review

  Annual Base Salary Short Term Bonus Dec-Jan Nov

  Long Term Incentive

List of Competencies (example)

  TECHNICAL COMPETENCIES : CORE COMPETENCIES :

  1. FEED PROCESSING

  1. INTEGRITY

  2. FEED FORMULA

  2. TEAMWORK

  3. FEED WAREHOUSING

  3. INNOVATION

  4. PROFIT & LOSS FEED BUSINESS

  4. ACHIEVEMENT ORIENTATION

  5. SERVICE LEVEL TO CUSTOMER

  5. CUSTOMER FOCUS

  6. ETC… LEADERSHIP COMPETENCIES :

  1. SHAPE THE FUTURE

  2. REAL ACCOUNTABILITY

  3. BUSINESS ACUMEN

  Matriks Kategori Talent (MKT)

  Tinggi

  Sumber Daya Potensi Tinggi Bintang

  (1/3) (2/3) rja ne Ki mana) ai an

  Sumber daya Sumber Daya Potensi Tinggi g ag n B (1/2) (2/2) (3/2) u mb dan na si e

  (Apa Perlu Perhatian Perlu Perhatian Berpotensi

  K (1/1) (2/1) (3/1)

  Rendah Rendah

  Tinggi

• Potensi Talent ----------------

Suggested Action Plans Inconsistent in meeting agreed individual business targets consistently exceeding agreed individual business targets

• Recognise and reward
• Provide feed>Mentor/coach to improve Leadership •Acknowledge contribution Recognise and reward
• Challenge/stretch
• Expose
• C>Reward
• Milestones
• Provide feedback
• Training
• Coach to improve deli
• Specific goals & objectives
>Set clear Milestones •Provide feedback
• Coach Monitor/track
• Decision to continue or end employment

  Consistently exceeding expectations Inconsistent in meeting expectations

Potential

  Capacity WHAT

  Competencies & living values Potential discussion

  Skills Experiences

Performance

  PT Put real evidences objectively

  26 11/13/2017 Talent Development

  27 Succession Plan

  Contoh Template